Personal Contract Purchase

Silver Aston Martin


Here at Magnitude Finance, our concierge team has a wealth of knowledge gleaned from over 30 years of experience, making us the perfect choice when it comes to getting the keys to your dream prestige vehicle. Our ability to negotiate, broker, and secure the best PCP finance deals for our clients is matched only by first-class personal customer service – ensuring the entire finance process is a comfortable ride from start to finish.

Choosing to finance a prestige marque vehicle is something that needs commitment and consideration. We know it takes time. 

From the moment you get in touch with our concierge team, we’ll make sure to fully understand your future plans and expectations – so we can offer you the best, and most affordable, finance deal available.

Our concierge team is ready to speak with you right away, or you can arrange a call back to speak with one of our independent experts at a time that suits you.

Whether you are looking to secure finance for your first luxury vehicle, or are setting your sights on a new and exciting purchase, Magnitude Finance can offer an unparalleled service to help you find the best lenders. 

For the latest news and opinions from the luxury car finance sector and the supercar world at large, check out our buyer’s guides, reviews, and customer driving insights here

What is Personal Contract Purchase?

Personal Contract Purchase is one of the most popular ways to broker a finance agreement on a luxury vehicle. Not only is it cost effective with flexible deposit contributions, but it also gives users three options to choose from (keep, trade, or return) at the end of the contract. 

Since its inception in the late 90s, Personal Contract Purchase has become one of the most chosen methods for leasing a luxury vehicle. Built upon a traditional Hire Purchase (HP) agreement, the biggest difference between both finance options is the value of the vehicle, which is decided at the start of the initial contract and then deferred until the end.

This value, also known as the Guaranteed Minimum Future Value (GMFV), is determined by a set list: such as the starting mileage, an annual mileage limit as projected by the user, and the car’s age. As such, it’s important to remember that unless you choose to pay this GMFV at the end of your finance deal – the car is not yours. PCP works as a form of leasing, so making any changes or exceeding the limits outlined in your contract may have financial repercussions.  

At the start of a PCP finance agreement, you will be expected to pay a starting deposit. This is normally a figure between 10 to 30% as an industry standard, before starting to pay off your balance in fixed monthly payments over a pre-agreed period of time. 

Mercedes Interior and dashboard
Red Lamborghini Huracan

What happens to my car on a PCP agreement?

At 24 to 48 months into your payment period, clients have three choices available to them.

You might decide to hand the car back after your payment period ends and walk away with nothing more to pay. However, it’s important to note that the car must still be in excellent condition and within the agreed mileage limit – or else you could face further penalties, such as excess mileage charges. If essential maintenance has been neglected, you could also be responsible for the cost of repairs. 

But if you are keen to keep the keys, all you have to do is pay off the remaining GMFV and enjoy the newest addition to your garage or luxury collection.

However, for those who would prefer to move onto the next model that has taken their fancy, you can simply part exchange your existing vehicle and use any leftover equity towards that arrangement. In this case, the equity is the difference between the GMFV and trade-in value. 

As with all products within the industry, it is still important to be mindful when taking out PCP finance. 

Despite its obvious benefits in terms of flexibility and lower rates, there can be some situations where a PCP agreement might become more expensive in the long run when compared to a Hire Purchase plan. 

Opting for a smaller deposit contribution at the beginning of your agreement might seem like a savvy choice, but it can also cause issues should you exceed predetermined limitations.

Monetary penalties, such as those excess mileage charges, will not only hit your wallet. They are also liable to put you at risk of negative equity, too, which is a frequent mistake made by people navigating this part of their finance journey. 

At Magnitude Finance, we’re here to help. Our experienced and discerning financial experts will be able to offer you tailored advice and offer support on car finance options where needed, ensuring that everything is handled to the very best standards. 

You can find out more about PCP finance by heading over to our Car Finance Academy. Compiled by our team of in-house experts, this comprehensive guide is your one-stop roadmap when it comes to the world of prestige car finance.

What are the benefits of this type of personal finance? 

If your idea of a luxury experience means getting behind the wheel of a variety of prestige cars, PCP finance is an understandably popular choice. 

PCP finance allows you to reap the benefits of fixed monthly payments – payments that are markedly lower than traditional Hire Purchase (HP) finance plans – over a set period of time while you keep an eye on your next dream car.   

Many people ask which is the better pick between Hire Purchase and PCP finance

Whilst both options have their advantages, the best pick for you will ultimately come down to your preferred payment schedule and what you’d like to do with the vehicle once your agreement period is up.

PCP finance is a much sought-after alternative to using traditional loans to secure funding on a chosen prestige marque car. This is because the future value of the chosen vehicle is calculated and used as the final payment at the end of the agreement term – so you’re safe from fluctuations in price.

PCP finance offers incredible flexibility throughout the plan – something that car fans old and new can certainly appreciate. 

As well as tailored deposit schemes and straightforward budgeting solutions, this type of personal finance allows clients to choose what they wish to do with the car or their equity once the term is complete. 

As long as you deliver those fixed monthly payments on time, what you do with the vehicle at the end of the contract is entirely your choice – giving you the freedom to change your mind throughout.

This is especially helpful for those who like to keep their eyes on the latest releases from the motoring world. 

We also know that circumstances change and you may wish to settle your finance agreement early. With PCP finance – as a regulated agreement under the Consumer Credit Act – you have the option to do this. At Magnitude, our team of financial experts are on hand to help smooth out the process, making sure that you get an accurate quote that covers the exit fee. 

This fee is the amount still owed, plus potential penalty charges that may be accrued. This is usually an exit fee totalling at 58 days interest charge. As with all of our leading financial products, we can discuss the best options for you and your situation, ensuring that you drive away happy.

You can also determine this figure by using our state-of-the-art settlement calculator, or get an accurate and straightforward quote by getting in touch with our concierge team directly.

Please note that this calculator does not take exit fees into account when producing a number.

How can Magnitude Finance help you with your bespoke PCP package?  

If you’re thinking of buying a prestige marque vehicle, we know that your finance options have to go the extra mile. That’s why we offer our clients an unmatched concierge service, saving them time, money and stress. 

Whether you have a set goal for your prestige car in the future or simply wish to find out more about the car finance options available to you, we’re on hand whenever and wherever you need us. Our experience has seen us work with clients dotted across the worlds of media, entertainment, sport, and business – all of which trust Magnitude Finance to obtain the very best finance solutions.

We know your time is precious, which is why clients old and new can always get in touch with our team of dedicated car finance experts. From face-to-face meetings to easily accessible quotes from our industry-leading calculators, simple online contact forms, or a good old-fashioned phone call, we pride ourselves on providing a cohesive, convenient service. 

When it comes to securing exclusive lines of finance for some of the most exciting models and makes within the motoring industry, Magnitude has the knowledge, expertise and technology to facilitate the best possible deals.

As well as being fiercely independent, we’re proud of the proven track record we have in helping clients get behind the wheel of their dream cars.

Our team are self-confessed petrol heads themselves who love nothing more than rising to the challenge of tailoring the ultimate bespoke PCP finance packages for the successful roster of people we have the pleasure of working with. 

After over 30 years in the business, we know how stressful and time consuming the financing process can be. That’s why our finance specialists handle the research, negotiation and sourcing – so you can spend your valuable time on what matters. 

Our first-class service goes above and beyond for our clients. As successful people, we know that your finance subject may span further from the garage, which is why you can also create tailored PCP finance plans and specialist lending for classic, exotic or older marque prestige vehicles. 

When it comes to the end of your PCP finance deal, we can also offer further assistance should you wish to continue your journey with us. From refinancing to choosing another finance product, we can fuel the funding for whichever powerful prestige purchase comes next.

How do I get a PCP quote from you?

Getting a PCP finance quote from us couldn’t be easier. All you have to do is pop us an email, pick up the phone or simply fill in our handy contact form at the bottom of the page – and a member of our dedicated concierge team will get in touch. Or alternatively, you can arrange a call back and a financial expert will be in touch at a time that suits you. 

At Magnitude, we’re determined to make every step of the finance process simple, smoother and more straightforward. That’s why we take the time to implement industry-leading technology that any of our clients can use, whether you are at the start of your purchasing journey or are coming to those all-important final considerations. 

In just 60 seconds, our innovative car finance PCP calculator is able to give you the best quote for your chosen vehicle. This no-fuss, no-stress and no-obligation tool saves our clients precious time when it comes to sourcing accurate quotes for their performance car, offering key insights that make informed decisions. 

All you have to supply is the details for the prestige car of your choice, such as the spec, make, model and year – and our handy tool will produce a precise figure. We regularly update this Car Finance Calculator so our clients are always at the forefront of the latest model releases and industry upgrades. 

At Magnitude Finance, we always work with our clients in mind. That’s why we work tirelessly to create the best packages for you and your interests, offering advice and support when needed.

When it comes to supplying customers with no-nonsense, no-obligation quotes, we’re the perfect pit stop.

If you want to get the most out of your PCP finance package, use our quick, easy and accurate Car Finance Calculatoror for a direct quotation, why not chat to our team of friendly experts today.