Personal Contract Purchase (PCP)
With PCP, you can keep your monthly payments low by deferring a significant proportion of the total amount of credit to the optional final payment at the end of the agreement – and then decide whether or not you want to keep the car.
Drive away a brand-new car with a PCP car finance plan that suits you
Personal Contract Purchase (PCP) helps you take control over the finance of your new Subaru. Simply choose the agreement duration and annual mileage that suits your motoring needs and Subaru Finance will calculate the predicted future value of your vehicle.
This predicted future value (plus a £10 Purchase Fee) becomes your optional final repayment at the end of the agreement. Deferring a significant proportion of the total amount of credit to the end of the agreement allows you to keep monthly repayments low, so you could drive away in a higher specification car.
Decide what you'd like to do next
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1
Return & part-exchange
Part-exchange the vehicle, subject to settlement of your existing finance agreement – new finance agreements are subject to status.
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2
Repay
Pay the optional final repayment to own the vehicle.
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3
Return the car
Return the vehicle without paying the optional final repayment.*
*If the vehicle is in good condition (fair wear and tear accepted) and has not exceeded the maximum agreed mileage, you’ll have nothing further to pay. If the vehicle has exceeded the maximum agreed mileage, a charge for excess mileage will apply.
Get a finance quote for your Subaru
Personal Contract Purchase (PCP) FAQs
What does PCP stand for?
PCP is an acronym for Personal Contract Purchase, one of the most commonly used types of car finance.
What is PCP?
A Personal Contract Purchase is a flexible way to get the car you want. You will pay an initial deposit, followed by monthly payments based on the estimated value of the car at the end of the contract. At the end of the agreement, you get the option to make a final payment and get the full ownership of the car, or you can give the car back and get a new contract for a new model. It’s that simple.
How does PCP work?
Think of your Personal Contract Purchase as an agreement that has three parts:
An initial deposit
This is the initial payment you will make at the start of the contract. You can choose to make a larger deposit payment. This will bring down the monthly payments.
Monthly payments
These are fixed payments you will make every month during the duration of the PCP agreement. The monthly payments are based on the estimated value of the car at the end of the contract, the number of months in your chosen agreement term and the initial deposit.
Optional final payment (also known as the “balloon payment”)
The final payment is agreed on at the start of your contract. Once the term is up, you can choose to pay it and keep the car or return the car, get a new model and a new contract.
What are the advantages of PCP?
Predictable payments every month
No surprises when it comes to a Personal Contract Purchase. The monthly payments are fixed, so you will know what to expect every month.
Flexible options
If you fell in love with your Subaru, you can keep it. If you want a newer model, we’ve got you covered. Even if you just want to return your car and not choose another one, we can easily arrange it.
Lower monthly payments
A Personal Contract Purchase allows you to pay the depreciation cost, instead of the car’s full sale price. You can also take advantage of the option to pay a higher deposit which will lower your monthly payments even more.
What are the disadvantages of PCP?
Mileage limitations
Your PCP agreement will specify an annual mileage limit. This is usually high enough to allow you to enjoy the car fully and not worry about the miles travelled. But the limit is something to keep in mind, especially if you need to drive long distances frequently. There might be additional costs once the mileage limit is exceeded.
What are the differences between PCP and PCH?
With a PCP agreement you have the option to buy the car at the end of the term. A PCH, or Personal Contract Hire, is a long-term hire agreement where you don’t own the car and you can hand it back at the end of your contract.
What are your options at the end of the Personal Contract Purchase agreement?
You have three options at the end of your PCP agreement: you can pay a lump sum and get ownership of the car, return the car or renew your contract and get a new car.
What Subaru models are available on a Personal Contract Purchase finance plan?
The Subaru models available on PCP are the Outback, the all-new Forester and Crosstrek.
How long does a Personal Contract Purchase agreement last?
The agreement duration for a Subaru Personal Contract Purchase is 37 months.