How to Find the Best PCP Deals in the UK

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PCP deals can look very attractive, with low monthly payments and tempting deposit contributions. But not all offers are equal, and the “best” deal depends on more than just the monthly figure.

This guide explains what to look for when comparing PCP offers and how to use a calculator to see the true cost of finance.

Key Parts of a PCP Offer

When you see a PCP deal advertised, pay attention to:

  • APR (interest rate): Lower APR usually means lower total cost of finance.
  • Deposit: How much you are expected to put down, including any part-exchange.
  • Dealer/manufacturer contribution: Extra money the dealer adds towards your deposit.
  • Term length: Commonly 24, 36 or 48 months.
  • GMFV (balloon payment): The optional final payment if you want to keep the car.
  • Annual mileage: The limit before excess mileage charges apply.

Comparing Deals Properly

Two deals with similar monthly payments can have very different total costs. To compare fairly, look at:

  • Total amount payable if you hand the car back at the end
  • Total amount payable if you pay the balloon and keep the car
  • Any fees or charges (documentation fees, option-to-purchase fees, etc.)

You can use the PCP Finance Calculator to model different APRs, deposits and GMFV values to see how they affect your monthly payments and total cost.

Where to Find PCP Deals

Good PCP offers can be found in several places:

  • Manufacturer websites: Often show national offers and special promotions.
  • Main dealer groups: May have local or dealer-specific incentives.
  • Car brokers and leasing companies: Can sometimes offer better discounts.
  • Comparison sites: Useful for getting a broad view of the market.

Common PCP Deal Pitfalls

  • Focusing only on the monthly payment and ignoring the total cost
  • Underestimating mileage to make the deal look cheaper
  • Not checking fees and charges at the end of the agreement
  • Rolling negative equity from a previous car into a new deal

PCP Deals FAQ

Is 0% APR PCP always the best deal?

0% APR can be very attractive, but it is still important to check the deposit, GMFV and any fees. Sometimes a small amount of interest with a bigger discount on the car can work out cheaper overall.

How can I tell if a PCP deal is good value?

Look at the total amount payable, not just the monthly payment. Use a calculator to compare different offers and consider how long you plan to keep the car.

Should I always take the dealer's PCP offer?

Not necessarily. It is worth comparing the dealer's PCP with quotes from independent lenders and checking whether a standard loan or HP might be better for your situation.