Vehicle finance discretionary commission complaints
The Financial Conduct Authority says some customers may have been charged too much on their vehicle finance before 2021.
Get support with commission complaintsPersonal Contract Purchase (PCP)
If your customer wants the option to change or upgrade their vehicle at the end of the agreement.
How PCP works
Your customer pays a deposit, and the remaining cost of the vehicle is split into monthly repayments over the term of the agreement. We guarantee the minimum amount the vehicle is worth at the end of the agreement (the GMFV).
With PCP, your customer could benefit from lower fixed monthly repayments compared to Hire Purchase and Conditional Sale.
Available for: cars and motorcycles.
Pay the deposit
Your customer puts down a deposit of around 10% of the vehicle price and pays the remaining cost of the vehicle over the term of the agreement.
Fixed repayments
Monthly repayments are fixed during the agreement and spread equally throughout the term, including interest. The agreement is up to four years (48 months).
Guaranteed minimum future value
We guarantee the minimum the vehicle will be worth at the end of the agreement, based on agreed annual mileage and maintenance of the vehicle. (If your customer drives more miles than the agreed annual mileage or the vehicle is damaged beyond our fair wear and tear standards, they may need to pay additional charges).
Choose to own, return or exchange the vehicle
At the end of the agreement, your customer can pay the ‘option to purchase’ (OTP) and Guaranteed Minimum Future Value (GMFV) fees to become the legal owner of the vehicle, hand it back to us and walk away, or part-exchange it for a new one.
Finance is secured against the vehicle
If your customer is unable to keep up with their payments, we may repossess the vehicle.
See how it works
Watch this introduction to PCP, see why your customers might consider it as a finance option, and things to think about.
Our finance products
We offer a range of finance products depending on your customer’s budget and vehicle needs.
- Fixed monthly repayments
- Early repayment options
- Own the vehicle at the end of the agreement
- No option to exchange the vehicle at the end of the agreement
- No excess mileage charges
- No vehicle condition charges (fair wear and tear)
- Fixed monthly repayments
- Early repayment options
- Option to own the vehicle at the end of the agreement
- No option to exchange the vehicle at the end of the agreement
- No excess mileage charges
- No vehicle condition charges (fair wear and tear)
Personal Contract Purchase (PCP)
If your customer wants options at the end of their agreement.
Current product- Fixed monthly repayments
- Early repayment options
- Option to own the vehicle at the end of the agreement
- Option to exchange the vehicle at the end of the agreement
- Excess mileage charges
- Vehicle condition charges (fair wear and tear)