Personal Contract Purchase (PCP)

Personal Contract Purchase is a finance product offered by Honda Financial Services that provides a flexible funding solution and can offer lower monthly payments than some alternative finance products.

How it works

Firstly, choose the car you want and agree how much deposit you would like to put down.

Estimate how many miles you will drive each year and agree how long you would like your agreement to run, between two and four years.

We will then use this information to calculate a Guaranteed Future Value (GFV). This is what we predict the value of your car to be worth at the end of the agreement.

The Guaranteed Future Value is deferred until the end of your agreement.

Because this value is based on your estimated mileage, it is important to give an accurate estimate, as you may have to pay excess mileage charges if you exceed your total agreed mileage for the agreement.

Your monthly payments are worked out on the difference between the GFV and the price of the car once your deposit has been taken off and interest added. This means you typically have lower monthly repayments than with Hire Purchase. Please view image above for illustrative example.

At the end of your agreement

At the end of your agreement you have the flexibility of 3 options:

Retain: You can keep the car. Pay the final payment (Guaranteed Future Value) and the option to purchase fee, and you will own the car outright.

Return: You can hand your car back to us without paying the final payment (Guaranteed Future Value) If you decide you would like to return your car back to us without paying the final payment, please contact us on 0345 128 8909. If you have exceeded your agreed mileage or the car is not in a good condition, then there may additional charges to pay. Excess mileage charges will be explained before you sign the agreement, so you will know what these may be if you go over your estimated mileage.

Renew: You can part exchange your car and subject to market value conditions, this should cover off the cost of the final payment. The together with your Honda dealer, you can start looking for your next Honda.

*Terms and Conditions Apply. See Brochure download for full details.

Other Honda Finance products

Further Information

If you would like to discuss your finance requirements, please Contact our Sales Team, or call our Business Manager, Mark Hannay, on 01932 877234.