Is PCP Finance Good Or Bad?

04/05/2021 / Comments 0 / 449 / News 2020
Is PCP Finance Good Or Bad?
Facebook It
Tweet It
Pinterest It

Did you know that around 9 out of 10 new cars sold in the UK are through PCP finance? Purchasing this way gives buyers the chance to make lower payments to buy their dream cars. Normally a deposit will be required, but in some cases, there are options for no deposit too.


PCP is a definitely a popular way to go about buying new cars off the forecourt and also gives you the option to keep the car at the end of the term, or choose another new car and start a new contract term. Unfortunately, PCP finance can also be a bit of a sore point if mis sold, which has recently been brought to light in the media.

What Is PCP Finance?
PCP finance is the abbreviation for Personal Contract Plan. The finance option itself can be more than adequate for most consumers seeking to buy a brand new car with low instalments. The reality is that PCP can be a cost effective way of sticking within your monthly budget. The issues tend to lie in not the product itself, but how it’s been sold to customers.

What’s Been The Common Issue?
There are a few but the most common mis-selling issue has been the dreaded final Balloon payment which has to be made at the end of the term, in order to complete the purchase of your car. This can range into many thousands of pounds. In many cases, for some reason, this has not been mentioned at the point of sale or the customer had a ‘misunderstanding’ on how the final payment will be made. This can be perilous because if you can’t pay it, you are at risk of losing your car and having a CCJ on your credit file.

Things To Also Be Wary Of
The PCP finance contract usually states a limitation on yearly mileage, penalties for scratches and dents, and possible negative equity of your car, meaning you may have to make up any shortfall of value in order to change the car and start a new PCP contract.

Good Alternatives?
Of course, there is! Firstly, yes it’s great owning a brand new car and nice to show off to the Jones’ next door. But we all know, once that car leaves the forecourt and is heading its way back to your home, it’s lost value. In some cases, depending on the make and model of the car, the drop can be staggeringly unbelievable.

Wouldn’t it be more logical to buy a high quality used car, a few years old, with a full service history? Firstly you’re getting it at a much cheaper price, and secondly, you can buy it through hire purchase finance. This means after the final payment, the car is yours, no small print on mileage, dents or scratches, etc. What’s even better is that Best Price Car Sales Will offer to use your car as part exchange which you still have on finance to upgrade for a bigger, better, or more fuel-efficient one. And if you have been making all your payments on time, you could even get an even better deal on the payments. This can all be done, after only one year!

Why not visit Best Price Car Sales and see our vast range of used cars and used vans, and speak to one of our friendly advisors today or call us on 02382 544 186.


Best Price Car Part Exchange
Best Price Car Part Exchange
Compare List
Book A Callback
Hamper £150
Tesco £50
Next time
Next £100
Panto Tickets
No Prize
Weekend Break
Amazon £250
No prize
Playstation 5
Get your chance to win a prize!
Enter your email address and spin the wheel. This is your chance to win amazing festive prizes!
Our in-house rules:
  • One game per user
  • repeat users will be disqualified.
  • Prizes are awarded at the time of purchase of one or more of our used car stocks.
Best Price Car Sales Facebook Chat