Why PCP?

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.

*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

How it works

  • 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.

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'. ​​​​​ (PDF, 1.2MB)

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

What you will pay

Flexible deposit options

£0 deposit may be available subject to status 

Fixed interest rate & monthly repayments

You'll make equal monthly repayments with a fixed interest rate over your chosen period of 1-4 years

End of agreement

Choose to either part exchange, return the vehicle or pay the optional final repayment to own vehicle. 

Personal Contract Purchase

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

Product guide (PDF, 3.7MB) Opens in a new tab.

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