What is PCP, how does it work & what are the benefits - PCP Explained



What is a  PCP?

A PCP is a Personal Contract Plan, it makes buying a car easier with lower repayments, lower deposit required,  and flexibility at the end of your contract.  With a PCP you are only paying back a smaller portion of the borrowing.

How it works?

A PCP is generally over a 36 months period but some can be over 24 months.  The buyer is required to submit a deposit, the deposit is deducted from the value of the car.  Linders will then provide a guaranteed future minimum value (GMFV) of the car.  The GMFV is the expected car's value at the end of the loan term. You as the buyer will only have to pay an affordable monthly repayment.  At the end of your agreed term 24 or 36 months you are left with 4 options:

Option 1. Hand the keys back and walk away from the car

Option 2. Sell the car

Option 3. Pay the guaranteed future minimum value as agreed at the beginning of your contract and the car is yours

Option 4. Swap the car for a new car.


What are the benefits of a PCP?

  • Lower deposit required
  • Lower monthly repayments
  • Shorter repayment terms
  • Option to change cars every 3 years
  • If you change every 3 years your car will always be under warranty


PCP is subject to terms and conditions.  

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