Personal
Contract
Purchase
(PCP) finance

Yes! We’ve launched PCP, so click here to Get A Budget and see if you’re eligible for HP, PCP, or both!

Yes, you can end a PCP (Personal Contract Purchase) agreement early, but there are a few important things to consider. Depending on your contract and how you choose to exit the agreement, you may need to pay off part of the remaining finance in advance. You’ll also need to return the car to the lender, and you could be charged for any excess mileage or damage beyond what’s considered fair wear and tear.

It’s always best to check the specific terms of your PCP agreement so you know exactly what to expect.

Whether PCP or HP is better depends on your individual circumstances. PCP offers flexibility with its end-of-term options, while HP has the benefits of no mileage allowance restrictions. Consider your financial circumstances, desire for flexibility at the end of an agreement and driving habits to determine which option suits you best.

A Personal Contract Purchase (PCP) can be a smart choice if you like changing your car every few years, want lower monthly payments, and are comfortable not owning the vehicle outright during the term. It offers flexibility at the end of the agreement, whether that’s returning the car, trading it in, or paying the final balloon payment to keep it.

Yes, it’s possible to get a PCP (Personal Contract Purchase) agreement with bad credit (a low credit score), but it may be more challenging. Lenders will look at your credit history to assess the level of risk involved, and having a lower credit score could mean:

• You’re offered higher interest rates
• You might need to provide a larger deposit
• There’s a chance your application could be declined, depending on the lender’s criteria

That said, some finance providers specialise in offering options to people with less-than-perfect credit. It can help to check your credit report in advance, consider improving your score where possible, and be honest on your application.

At Carmoola, we aim to make car finance clear and accessible. We’ll let you know your eligibility quickly (without impacting your credit score) so you can see your options upfront.

Yes, you can get a PCP (Personal Contract Purchase) deal with no deposit, but it depends on the lender and your circumstances. Some finance providers offer zero-deposit PCP options, which means you won’t need to pay anything upfront, but your monthly payments may be higher as a result.

A no-deposit PCP can be a good option if you don’t want to tie up your savings or need to keep upfront costs low. Just be sure to check the total cost over the term of the agreement and make sure it fits your budget.

If you go over your agreed mileage limit on a PCP (Personal Contract Purchase) plan, you’ll usually need to pay an excess mileage charge. This is a cost set by the lender, typically charged per mile over your limit, and can reach 15p per mile, but it can vary.

This charge only applies if you return the car at the end of the agreement. If you choose to buy the car by paying the final balloon payment, mileage won’t affect you in the same way.

To avoid unexpected costs:

• Try to estimate your mileage realistically when you take out the agreement
• Keep an eye on your usage during the term

At Carmoola, we’re upfront about mileage limits and costs, so you always know where you stand before you commit.

Not at all. PCP (Personal Contract Purchase) isn’t bad for your credit as long as you manage the agreement responsibly. In fact, it can help improve your credit score if you:

• Make all your monthly payments on time
• Stay within the terms of your agreement
• Avoid taking on more credit than you can handle

However, like with any form of finance, missing payments or defaulting could negatively impact your credit file.

So while PCP itself isn’t bad for your credit, how you manage it matters. Keeping up with repayments shows lenders you’re reliable, which can boost your credit profile over time.

With the Carmoola app, you get a clear view of your monthly payments, so you always know where you stand.

If you're struggling to make your PCP payments, it's important to contact your lender as soon as possible. They may be able to offer assistance, such as extending the term of your agreement or reducing your monthly payments to help ease the pressure on your finances.

Generally, you can’t modify a car on a PCP agreement, as some modifications may affect the car's value which is typically a risk that lenders are not willing to take on.