PCP Finance

PCP or Personal Contract Payment is an innovative way to fund the purchase of your next car. Quite simply what happens is that you put down a deposit or trade in, make regular monthly repayments over 36 months and then at the end of the term make a lump sum payment to close off the deal. This end payment is also referred to as the GMFV or Guaranteed Minimum Future Value. 

PCP Example

A PCP on a 2016 car would typically work out as follows:

 

Retail Price€15,000
Deposit or Trade in€3,000
 ________
 €12,000
Repayment€237 per month
GMFV€5,700

At the end of the term there are 3 options available: 

  • Trade in your car and use the surplus as deposit against your next car
  • Pay off the GMFV and hold onto the vehicle
  • Return the vehicle to the dealer with no further liability (subject to mileage and fair 
    wear & tear agreement)

A PCP normally suits a person who wishes to: 

  • Put down a small deposit
  • Covers under 20,000km pa
  • Change their car every 3 years