Father holding up daughter sitting in the boot of a car parked near a lake.



Black Horse Personal Contract Purchase (PCP) can help you buy your dream car with lower monthly repayments than a Hire Purchase (HP) product as a large proportion of the amount you repay is deferred into an optional final repayment.  You'll pay more interest on a PCP agreement than a HP agreement for the same loan amount, term and APR* as your balance reduces more slowly due to the optional final repayment.


Agree an initial deposit and term with the dealer and decide how many miles you'll travel each year.
The dealer will then work out the monthly repayment and the optional final repayment amount, based on the anticipated value of the vehicle at the end of the agreement.
•  At the end of the agreement, you can part exchange the vehicle, return the vehicle (return conditions apply) or pay the optional final repayment and own the vehicle.
Black Horse buys the car on your behalf and owns it for the duration of the finance agreement.
After you've made all the repayments including the optional final repayment and any interest, you will become the owner of the vehicle.

*Annual percentage rate of charge - the is the total cost expressed as an annual percent of the total amount of credit.  The APR is there to help you compare different offers

At the end of the agreement you will have three choices:

Part Exchange.  Subject to paying off your existing agreement in full, you can part exchange the vehicle at the end of the term or any time during the agreement.   New credit agreements are subject to status.   The vehicle could be worth less that the optional final repayment leaving you with a shortfall to pay before starting a new agreement.

Return.  You have the option to return the vehicle at the end of your agreement.  To avoid incurring charges, the vehicle needs to be in good condition and within the permitted maximum mileage.
Click here to see our 'Good Condition Guide'. ​​​​​​​

Own.   Own the vehicle outright by paying the optional final repayment. A purchase fee of £10 is included.



Ideal if
• You like to keep your options open at the end of your agreement.
• You like to budget and know the exact repayment amount each month.
You'd like to keep your monthly repayments lower by deferring a large proportion of credit into an optional final repayment. 

The choice is yours
• Choose any new or used car up to 7 years old at the end of the agreement. Some exceptions may apply.
• Minimum and maximum finance amounts may apply.

Things to consider
You must be at least 18 years old and a permanent UK resident.
You must have fully comprehensive insurance.
 You must have the relevant driving licence for the vehicle.​​​​​​​
The vehicle is at risk of repossession if you do not maintain contractual repayments.
You do not own the vehicle until the final repayment including interest has been made.
A significant proportion of the credit is deferred until the end of the agreement, you should prepare for this if you want to own the car.
Protection under the Consumer Credit Act Termination Rights and Protection under the Consumer Rights Act.

• Before you decide to apply for finance for a vehicle, we would encourage you to make enquiries of the dealer to ensure you fully understand the history of the vehicle so that you can make a fully informed decision as to whether the vehicle is suitable for you​.
Dealers typically receive commission or other benefits for introducing you to us.  If you request, they must tell you in good time before you enter into the credit agreement, the amount of any commission payable.
• Details of your credit agreement will be recorded with credit reference agencies.

Personal Contract Purchase

Watch the product video or download our Car product guide for more information.

Compare Our Finance Products

View the Black Horse Product Comparison page to help you decide which product is right for you.

Compare Our Finance Products