Call Menu Reserve your next vehicle online for £99 Shop now Lipscomb FINANCE Car Finance What is Personal Contract Purchase (PCP)? Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car. It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months. What makes PCP different to Hire Purchase (HP) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV). How does PCP actually work? What are the advantages of PCP? What should you consider when opting for PCP? Can I settle my PCP agreement early? FIND AND FINANCE YOUR NEXT VEHICLE THROUGH PCP What is Hire Purchase (HP)? Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright. What are the advantages of HP? What should you consider when opting for HP? Can I settle my HP agreement early? FIND AND FINANCE YOUR NEXT VEHICLE THROUGH HP Contact Us Whatever your question or feedback we are here to help. So please feel free to contact us CONTACT US ABOUT US Join us on Social Immerse yourself even deeper. Visit our social channels Site Map Modern Slavery Statement Terms & Conditions Privacy Policy Customer Service Data Preferences Back to top @Lipscomb Reg Office: Lipscomb Cars Ltd 3-4 Bower Terrace, Tonbridge Road, Maidstone, Kent, ME16 8RY Registered in England: 3165756 VAT Reg No: 662 0113 79 Financial Disclosure Lipscomb Cars Ltd are a credit broker and not a lender. We are Authorised and Regulated by the Financial Conduct Authority. FCA No: 300734 Finance is Subject to status. Other offers may be available but cannot be used in conjunction with this offer. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. NetDirector ® - Automotive Ecommerce change cookie settings This site uses cookies and related technologies for site operation, analytics and third party advertising purposes as described in our Privacy and Data Processing Policy. You may choose to consent to our use of these technologies, or further manage your preferences. To opt-out of sharing with third parties information related to these technologies, select "Manage Settings" or submit a Do Not Sell My Personal Information request. MANAGE SETTINGS ACCEPT RECOMMENDED