Honda Personal Contract Purchase (PCP)
PCP is a flexible funding solution giving you the peace of mind of a guaranteed future value of your car. Designed to keep your monthly payments lower than finance alternatives such as Hire Purchase.
How does it work?
- Choose the Honda you want
- Think about how much deposit you want to put down, how many miles you drive each year and how long you'd like the agreement for (between 2 and 4 years)
- We'll use this information to calculate a guaranteed future value (GFV), which is the predictive value of your car at the end of the agreement
- The monthly payments will then be worked out based on the difference between the GFV and the price of the car once your deposit has been deducted and interest added.
- At the end of the agreement you'll get to choose whether to keep the car or not.
At the end of your PCP agreement
Once you come to the end of your PCP agreement you'll have three options; you can choose to keep the car by paying the GFV and option to purchase fee, which will mean you own the car outright then. The second option is to return the vehicle, as long as the car is in good condition and you haven't exceeded your agreed mileage there will be no extra charges to pay, you can find full details in your agreement. Lastly you have the option to renew, so you can part-exchange your car towards a new one.
Choosing the right finance product
PCP isn't right for everyone, check out the other finance options available before making a decision to make sure there isn't another product better suited to your needs.