1. Personal Finance
  2. Personal Contract Purchase


Personal Contract Purchase (PCP) is a way to borrow money to buy a car. Find out more about the features and risks of Personal Contract Purchase below and browse our handy frequently asked questions.

What is PCP finance?

Personal Contract Purchase (PCP) is a way to borrow money to buy a car. You pay back the money every month, and at the end of the contract, you can choose to return the car, upgrade, or make one final payment (Optional Final Payment) to own it. You won’t own the car until the end of the agreement and the Optional Final Payment has been made. We’ve split the process into four stages below to give a clear explanation of Personal Contract Purchase:

  • Key Features of PCP


    • Fixed monthly payments
    • Choose a term that suits you from 24 to 48 months*
    • Decide on your annual mileage up front
    • Put down a deposit of up to 35% of the car price to suit your budget
    • Enjoy flexible end of agreement options and lower monthly payments because a proportion of the amount is deferred to the end of your finance agreement. This amount is called the Guaranteed Future Value (GFV) or Optional Final Payment.
    • 3 options at the end of your finance agreement: keep, upgrade or return the car.
    *Maximum terms vary according to car model.
  • Key Risks of PCP


    • If you want to keep the car at the end of your finance agreement, you will need to pay the Guaranteed Future Value or Final Payment.  Once this is paid, ownership will be transferred to you.
    • If you exceed the agreed mileage and choose to return the car, an excess mileage charge will be payable at the end of your finance agreement.
    • If you decide to return the car at the end of your finance agreement and it is in poor condition which is outside fair wear and tear guidelines, you will be required to pay for the damage. Our representative will assess the car in line with the current BVRLA Fair Wear and Tear Guide. Any items outside of this acceptable range will be charged.
    • If you fail to make the payments under your finance agreement, we will assist you in your circumstances to achieve a sustainable outcome, but you may have to return the car or it can be repossessed, legal proceedings may be commenced against you to recover sums that you may owe and your credit rating may be adversely affected.
    • The car is likely to depreciate in value during the life of your finance agreement.


Subject to terms and conditions. Interest is charged on refinanced agreements. Contact the Customer Solutions team for further information and the prevailing rate of interest.

How does PCP finance work?


The deposit is the amount you pay upfront at the start of the agreement, and it will determine how much you need to borrow. The deposit ranges from 0 to 35% of the vehicle price. The larger your deposit, the less you’ll have to borrow and the smaller your monthly payments will be.

2. Your Monthly Payments

Your monthly payments will be fixed throughout your agreement and are affected by the amount of your deposit. When you apply for a PCP finance agreement, Lexus Financial Services calculates how much it thinks your car will be worth at the end of the agreement, this is called the Guaranteed Future Value (GFV). The GFV is used to determine how much you’ll have to pay at the end of your finance agreement to own the car.


Your PCP agreement will come with rules around car usage that help you avoid any further charges. These will determine how many miles you can drive throughout your agreement.

Your mileage limit will be communicated at the start of your agreement.


At the end of your PCP agreement, you have the option to return the car, pay the Optional Final Payment to own the car, or upgrade. If the car is worth more than the Guaranteed Future Value (GFV) then you can put that extra money towards your next car.


To talk to us about your end of agreement options, please contact our Customer Experience team on 0370 850 7788

Alternatively, if you want to discuss refinancing your Guaranteed Future Value (GFV) please contact our Customer Solutions team on 0345 607 7744.


PCP Frequently Asked Questions

0 to 35%

Choose a term from 24 to 42 months*



Yes. You decide your annual mileage at the start of your finance agreement.



Your finance agreement will state that the car must be maintained in line with the manufacturer’s guidelines.

The Guaranteed Future Value (GFV) is the final payment which is secured by the value of the car. If the car is worth less than the GFV, you can choose to return it to the finance company with nothing further to pay, subject to terms and conditions. If the car is worth more than the GFV you get the equity.

If you decide to part exchange, you will need to settle your finance agreement, you can do this at any time. For regulated finance agreements, an early settlement amount is calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004.

Yes. Ownership will pass to you once all of your monthly payments and the final payment (also known as the Guaranteed Future Value) have been paid, or if you settle all applicable payments earlier.

Yes, but only if you want to keep the car

You can upgrade the car, return the car, or pay the Guaranteed Future Value (GFV)  to own the car**


** Keep - pay the GFV and own your car;

Return - Hand the car back

Upgrade - Part exchange the car for a new car