Best PCP car deals - November 2023

PCP is the most popular way to buy a new car thanks to affordable monthly payments and great incentives if you know where and when to look. We round up the best PCP deals around.

If you’re in the market for a new car deal, then PCP is likely to become very familiar to you. That’s because between 80% and 90% of new cars hitting UK roads are bought using some form of Personal Contract Purchase, or PCP for short.

The best car PCP car deals are a great way of getting you behind the wheel of the car of your choice. Simply put, you pay a deposit that's affordable, then agree on monthly payments that won’t overstretch your finances, then have the option to buy your car once your deal reaches its end.

As with all things, not all car PCP deals are created equal, with some tantalisingly low monthly payments calculated on unrealistically low annual mileage allowances to lure you in. Or other PCP deals having very high interest rates, which can be bumped up if you have a lower credit rating.

However, the popularity of PCP deals means car dealers and car makers often sweeten their deals with things like free services, 0% interest rates and significant deposit contributions, especially if you buy from a franchised dealer and use that firm’s financial services for the loan. If you’re flexible in your approach, then great deals await.

Keeping on top of the latest, greatest PCP deals can be exhausting work, which is where we come in.

Here we round up the best PCP car deals in the UK available to new car buyers right now. We search far and wide to hopefully find the right car PCP deals that works for you.

After more deals on new cars? Check out our round-up of all the best new car deals around. 

PCP Deals - A-Z by Car Maker

Here's a list of the PCP deals being offered by carmakers right now. If a deal pops up, we'll feature it here.

PCP car deals

Our round-up of the best car PCP deals highlights the deals we think are the best balance between a low deposit and affordable monthly payments. We update this page every week to make sure we bring you the best deals.

How does a PCP work?

Rather than buying a new car outright in one go, a PCP agreement allows you to pay an initial deposit towards the cost of the car, either with cash or a part exchange, or combination of both.

You then take out a loan to be paid back over a set number of monthly payments - usually over two, three or four years. This breaks the repayment of the loan down into much more manageable chunks, and is effectively you covering the cost of the car’s depreciation.

At the end of the agreement, you have the option to give the car back and walk away, part-exchange the car and start a fresh PCP agreement on a new car. Or you can pay the outstanding amount, which is often called a balloon payment, to own the car outright.

How can I make the monthly cost as low as possible?

The first golden rule is to make sure you don’t get sucked in by a deposit and monthly payments that you can only just afford.

If your circumstances change, this could have a significant impact. Nicer cars can mean bigger bills for things like insurance and other running costs, too. If you can afford a larger deposit, this can trim the monthly payment, as can opting for a longer time period for making repayments. PCP is effectively financing the car’s depreciation, so choose a car that will hold its value well.

How is the final payment to own the car calculated?

The final payment is often called the balloon payment, and has to be paid off in order to have ownership of the car transferred from the finance company to you.

It’s calculated based on the make and model of car, which impacts how much it will depreciate in the time you’re paying off the loan, and also considers the length of the finance agreement, and how many miles you’re likely to drive.

It’s agreed when you make the PCP deal, so make sure you understand the figures before signing on the dotted line.

Who owns a car bought with PCP?

For the duration of the PCP, the car is owned by the finance company that you sign the deal with. So while you’ve paid your deposit and monthly payments, the car still belongs to the finance company.

At the end of the agreement, the car’s ownership can be transferred to you only if you settle up and pay the final balloon payment to keep the car.

Often, PCP deals are offered by the financial services companies of major carmakers. For example, if you buy a new Ford Puma on PCP, you’ll be signing an agreement with Ford Credit, so Ford Credit would own the car for the duration of the PCP deal. Pay the balloon payment and it’s yours.