From PCP & Hire Purchase to bespoke funding packages


We offer a range of car finance products to meet your individual requirements.

Our concierge service, coupled with over 30 years experience, and a panel of over 20 lenders enables us to create a finance package to suit each individual client’s needs.

To begin your journey with Magnitude Finance explore our range of products below, or enter your details into our unique car finance calculator for an instant, accurate no-obligation finance example.

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What is Personal Contract Purchase

Personal Contract Purchase, also known as PCP, is a popular way of financing a vehicle and is usually based upon a Hire Purchase (HP) agreement. The main difference is that the vehicle’s value at the end of the agreement is calculated at the start and is then deferred. This is referred to as the Guaranteed Minimum Future Value (GMFV) and is based on various factors including the starting mileage, the user’s projected annual mileage and the age of the car.

At the end a PCP agreement the user has three options:

  • Pay the GMFV and keep the car
  • Trade the car in and use any equity towards their next car purchase
  • Hand the car back with nothing more to pay*

*The car must be in good condition and within the agreed mileage

Under a PCP agreement, monthly instalments are based on the amount borrowed minus the GMFV.

How does it work?

You pay an initial deposit – normally 10-30% – and then the balance in fixed monthly instalments over an agreed term (24-48 months). At the end of the contract you can choose to hand the car back with nothing more to pay*, part exchange it and use any equity (the difference between the trade-in value and the GMFV) towards the purchase of your next car, or simply pay off the GMFV and keep the car.

What are the benefits of Personal Contract Purchase?

  • Flexible deposit options at the start
  • Lower monthly payments than Hire Purchase
  • Fixed monthly payments throughout the term of the agreement
  • Three options at the end of your agreement
  • Easy to budget for your next car purchase

Why choose a PCP?

PCPs are great if you want to change your car on a regular cycle and enjoy fixed monthly payments that are lower than a traditional Hire Purchase.

Things to consider

  • Charges – a PCP agreement could work out to be more expensive overall compared to a hire purchase agreement for an equivalent vehicle.
  • If you decide to return the vehicle, make sure it is in good condition as you could be responsible for any repairs if it is not.
  • Make sure you estimate your annual mileage with care as there will be charges for additional miles above the amount agreed.

Read our faq's

We’ve got lots of amazing resources to help you understand the world of prestige car finance

Our Car Finance Academy provides all the resources you will need to choose the right finance product and get the most out of your car finance agreement.

Car finance can be tricky to understand, so we help de-mistify it. Do you know the difference between a regulated and non-regulated agreement? What happens if you want to trade your car in before your finance is over? We’ve got the answers that some finance companies won’t want to give you…

Read more

Already have a Finance agreement in place?
Try our Car Finance settlement Calculator.

Our car finance settlement calculator will calculate the outstanding balance of any loan.

This formula assumes all payments are made on time and that you have an agreement regulated by the Consumer Credit Act. Please note that there may be additional settlement penalties for non-regulated agreements.

If you wish to settle any finance agreement early and you are a Magnitude customer please give us a call. If not, we recommend that you contact your existing finance provider for an exact figure.

Settlement Calculator

Our concierge team love helping our customers finance their dream car. Get in touch with them to see how we can do the same for you.