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101 Best PCP Car Deals on Used Cars

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Rates from 8.9% APR. Representative APR 19.9%

Get a Used Car PCP Finance Deal at a Fraction of the Cost

Can I Buy a Used Car on a PCP Deal?

Yes. PCP deals on used cars have never been more popular among drivers seeking affordable car finance.

Despite the significant rises in living costs, a PCP deal on a used car can help get you into a quality car better than you might otherwise buy. Many lenders will have criteria for a used vehicle on a PCP of no more than ten years old or 100,000 miles on the clock at the contract end.

Compare the cost of a new car on PCP v a three-year-old vehicle

Buying a new car depreciates by about 50% within three years, the usual length of a PCP car deal. Suppose you purchase a new  £20,000 car over a three-year PCP deal. Although, on a PCP, you only pay for the amount the vehicle depreciates, that is still  50% or £10,000 plus interest spent for driving it for three years.

Instead, you could drive that same car at three years old on a used car PCP finance at a fraction of the cost because your monthly repayments are based on the vehicle’s depreciation, which is much lower after three years.

New cars depreciate by about 50% within three years. You could drive that same car at three years old on a used car PCP finance at a fraction of the cost.

Rates from 8.9% APR. Representative APR 19.9%

Where Can I Buy a Used Car on a PCP Deal?

When buying a car on finance, you are making two significant decisions. You are looking for the best car and the cheapest finance. They don’t both necessarily come from the same place.

All the large manufacturers’ dealers have their own PCP on their Approved used cars. Many used car dealers can also provide finance, typically HP, but less often, a PCP deal on a used car.

The advantage of using an online car finance broker like us to apply for your PCP finance for a used car is considerable:

  • Access a large panel of used car PCP finance providers (not just one finance option) to find the cheapest and best deal to suit your circumstances, including credit history.
  • Any finance talk necessary to resolve any issues, such as proof of income or an initial decline, are in private direct with your account manager.
  • Once you agree on finance, you’ll have access to the website of over 100,000 cars and visit any reputable dealer you choose with financial freedom.

What is PCP Car Finance?

Monthly payments on car PCP deals are considerably cheaper than other car finance deals during the contract term – PCP car finance delays a large part of the payment until the end of the contract.

The flexibility of the best PCP deals means that annual mileage, length of the finance agreement and even a lower deposit amount are adaptable to your needs.

The distinct advantage of used car PCP car deals (Personal Contract Purchase) is they give you options. You don’t have to buy the vehicle at the end of the contract term, but you can!

How do PCP Deals Work?

PCP deals have two essential parts, three if you buy the car at the end of the agreement.

  1. Deposit – At the start of the finance agreement, you want to consider a deposit – the more you put down, the less your repayments are. If you wish, you can often pay just a one-month initial deposit.
  2. Monthly payments – the amount you borrow and pay back with monthly instalments is – the value the dealer/finance company estimate the car will depreciate over the contract term.
  3. Balloon payment also GMFV – Finally, you’ll need to pay the Guaranteed Minimum Future Value if you want to keep the car after your PCP finance agreement. Don’t worry, though. You don’t need to decide until the end of the deal!

A point of caution if you decide to return the car at the end

Mileage – With PCP deals, you must agree to a total mileage limit for the car; this helps the finance company calculate the amount the vehicle will depreciate. You’ll get charged if the vehicle has excess mileage.

Damage – car finance companies expect on return of the car the condition to correspond with the age and mileage of the vehicle and will accept damage deemed fair wear and tear. Damage penalties will apply if the vehicle is not up to scratch.

Rates from 8.9% APR. Representative APR 19.9%

How do the Payments Work on PCP Deals?

Setting up the PCP Agreement

Suppose you want to finance a car worth £12,000 over 36 months. And you pay a 10% deposit, that’s £1,200 leaving £10,800 to go on finance.

Next: The finance company calculates the vehicle’s future value will be £7000 (the GMFV) at the end of the 36 months.

What you Pay

The amount you repay is £3,800 Plus Interest*. Over the 36 months.

Explained The PCP loan is £10,800: However, the GMFV of £7000 is deferred until the end of the contract. You only repay the difference of £3,800 (£10,800 less £7,000).

*The Interest is on the total loan amount of £10,800 over 36 months.

Your Options at the End of the Contract

You pay £7000 to own the car or return the vehicle with nothing to pay (assuming there is no damage and you’ve kept to the agreed mileage).

Check these details when comparing PCP Deals

  • APR, you’ll be paying.
  • Total amount repayable to buy the car at the end of the contract.
  • The total cost of Interest.
  • Any additional fees.

What is a GMFV/Balloon on a PCP Deal?

What is a Balloon Payment? The Guaranteed Minimum Future Value (GMFV), also affectionally known as the ‘Balloon’, makes PCP deals unique from other car finance.

The payment of the GMFV is optional and does not occur until the end of the finance agreement. That is why monthly payments during the agreement are considerably lower with PCP than with other car finance.

At the end of the PCP agreement, it is the ‘Balloon’ you’ll have to pay to keep the vehicle – refinancing the car is a popular way to make the balloon payment.

Can you get Used Car PCP Deals?


Lenders offering PCP deals on used cars have criteria that the vehicle is not older than ten years nor more than 100,000 mileage at the end of the car finance agreement.

Perhaps the best of both worlds, many manufacturers offer ‘Approved Used’ cars. These are used vehicles that the manufacturer’s mechanics have thoroughly checked over, and they typically come with a warranty. While they’re a bit more expensive than a used car from Dave down the road, they’re likely to be newer and more reliable.

Whether you go for a PCP deal on a used or a new car, it works more or less the same. A Personal Contract Purchase on a used vehicle will likely require an initial deposit and monthly payments over the stated term (usually) two to four years.

You can either give the car back or pay a final amount to own the vehicle outright at the end of the term. This balloon payment is usually a few thousand. Finance Companies can charge monthly repayments lower than most other deals by adding the balloon payment.

While you can use manufacturer-backed finance for ‘manufacturer-approved used’ cars, you can also get PCP finance from a car dealer or online broker. More than 90% of all these car sales are financed by lenders who are members of fla.org.uk

Rates from 8.9% APR. Representative APR 19.9%

Can you get PCP Deals on All Used Cars?

It is up to the lender whether they decide to offer PCP deals on used cars. It’s essential for the finance company that the future value of the second-hand car won’t be too low or hard to predict (as this influences the balloon payment). If you shop around, you’ll likely be able to find a used car at low monthly payments.

Some finance lenders won’t offer Personal Contract Purchase on certain cars – the final value of the vehicle will either be too low or too volatile to predict. For example, many lenders won’t lend on a car that will be ten years old (or over 100,000 miles) at the end of the contract term. You’ll need to look at this on a case-by-case basis, but generally, lower monthly payments are possible on second-hand cars up to a few years old.

New Car PCP Deals

Manufacturers sometimes offer incentives, low-interest rates, and free servicing. It’s also common for many manufacturers to provide reasonable trade-ins on a part exchange on your existing car.

Signing up for PCP car finance is a breeze, and you can often be in and out of the dealer in the afternoon!

Can I get Manufacturer Deals on Used Car PCP finance?

If you’ve been looking around at new cars, you’ve probably seen some offers with attractive PCP finance deals. These often include buzzwords like ‘0% interest rates or ‘deposit contributions. The best deals will come from the manufacturer, and you rarely find similar deals on used cars.

You’ll likely have to pay a deposit on a used car, often around 10-25%,  and it’s rare to see any other incentives.

Rates from 8.9% APR. Representative APR 19.9%

How Long is a PCP Contract?

There’s no hard and fast rule for how long a PCP deal can last. It’s really at the lender’s discretion. However, you can typically expect two to five years contract lengths. The shorter the finance agreement, the higher the monthly payments will cost – but the quicker you can swap the car for something new.

If you’re applying for a PCP deal on a used car, you might find that you’re only offered a three-year maximum term on some vehicles. The car might be too old when you hand it back to be profitable for the finance company.

What Happens at the End of a PCP Deal?

At the end of PCP car finance deals, you have three options:

  • Hand the car back and nothing more to pay. (Unless you have mileage or damage penalties)
  • Pay the optional final payment and own the vehicle; this is usually a relatively large number (often in the thousands!)
  • If the car is worth more than the GMFV, you can return the vehicle and use that equity towards a new PCP deal.

Do You get any Money Back at the End of a PCP?

The main way drivers can get money back is through ‘trading in’ a car on PCP with equity. That means where you’re purchasing a new vehicle will effectively pay off your current vehicle’s finances, putting the extra value in the car towards the one they’re selling you.

Rates from 8.9% APR. Representative APR 19.9%

What are the Pros and Cons of PCP Deals?

While one of the most popular finance options, PCP car finance has drawbacks. Here are the pros and cons:

  • You can drive a newer car.
  • Lower monthly repayments than other car finance, where you keep the vehicle at the end of the contract!
  • You have a lot of flexibility at the end of the agreement. You can get the car and decide you don’t want to own it outright later. You have no obligation to pay the optional final payment!


  • You’ll have to pay a pretty hefty sum to own the car at the end of the PCP car finance agreement.
  • You must agree to an annual mileage and be careful about the car’s wear and tear or damage.
  • Some finance companies might require you to pay an initial deposit.

PCP v Hire Purchase

The Hire Purchase HP and PCP deals are the most common car finance options. They’re much easier to get than a personal loan or a car lease. They’re also similar in that you pay fixed monthly payments to the finance company.

However, there are some significant differences to consider. If you want to own the car at the end of the finance agreement and aren’t concerned with higher repayments, go for HP car finance. You’ll also have the bonus of no mileage restrictions!

If lower monthly repayments are more important than ownership, you’ll want the Personal Contract Purchase PCP deal. But be aware that you’ll have mileage restrictions, and need to keep the vehicle in tip-top condition if you’re returning it.

You can purchase the vehicle at the end of a Personal Contract Purchase PCP deal, but you’ll have to pay a chunky (balloon payment)!

PCP Finance vs Personal Loan

If you want to own a car, a personal loan is better than a Personal Contract Purchase or PCP car leasing. You own the vehicle immediately after you hand the money to the dealer! You have the flexibility to sell or modify your car if you wish.

However, car loans often aren’t a choice for younger drivers or those with poor credit. Getting personal finance can require an excellent credit rating. The monthly payments are considerably higher than with PCP finance.

If you want a newer vehicle every couple of years and don’t care about ownership, opt for the PCP.

Rates from 8.9% APR. Representative APR 19.9%

PCP Finance vs Car Lease

A lease has a lot of similarities to a PCP deal. You pay a set monthly amount, have a mileage limit, and must keep the vehicle in decent condition. The main difference is that you cannot buy the vehicle at the end of the contract term with a car lease.

However, the upside is that your monthly payment is often lower. Usually, you can only get a car lease on a new vehicle. A Personal Contract Purchase might be more affordable even if you don’t want to own the car.

Can I settle a Personal Contract Purchase PCP deal early?

Suppose you wish to return a car under a Personal Contract Purchase deal early. You can end the contract whenever you want!

The lender will calculate a settlement price you need to pay to end the contract.

When calculating the settlement amount, the finance company can only charge you up to two months’ interest on the balance.

Ending the contract early should reduce the interest you pay compared with continuing with the PCP finance. On owning the car outright, you can keep or resell the vehicle.

Voluntary Termination on a PCP

Under the Consumeryou’ret Act 1974, you can return a vehicle on a Personal Contract Purchase deal with nothing more to pay if you have paid at least 50% of the total finance – this is called Voluntary Termination.

Is a PCP Deal the Right Choice for You?

If you’re a driver who wants to change their car regularly, a Personal Contract Purchase can be a great option.

However, if you’re not the most careful driver or log many miles in your vehicle, then a PCP vehicle deal might not be the right choice. You’d probably be better off with a Hire Purchase or Personal loan!

Rates from 8.9% APR. Representative APR 19.9%

Best PCP Deals

Rates from 8.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed), and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.

We look to find the best rate from our panel of lenders and offer you the best deal you’re eligible for. We don’t charge a fee for our service, but we earn a commission. This does not influence the interest rate you’re offered in any way.

Autedia Limited is a credit broker and not a lender, authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 948436). You can check the authorisation on the FCA Financial Services Register.