Why PCP?

​​​​​​Personal Contract Purchase (PCP) can help you buy your dream caravan 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 will 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.


How it works

  • Agree an initial deposit and term with the dealer.
  • The dealer will then work out the monthly repayment amount and optional final repayment amount, based on the anticipated value of the caravan at the end of the agreement.
  • At the end of the agreement, you can part exchange the caravan, return the caravan (return conditions apply) or pay the optional final repayment and own the caravan.
  • Black Horse buys the caravan on your behalf and owns the caravan 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 caravan.

*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 caravan at the end of the term or any time during the agreement. New credit agreements are subject to status. The caravan 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 caravan to us at the end of your agreement. To avoid incurring charges, the caravan needs to be in good condition. Click here to see our 'Good Condition Guide' (PDF, 9MB)

Own. Own the caravan 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

Fixed Interest Rate & Monthly Repayments

You'll make equal monthly repayments with a fixed interest rate over your chosen period of 1-5 years

End of Agreement

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

What you need to know

Ideal if

  • You like to keep your options open at the end of the 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

  • Available on new caravans only.
  • Maximum and minimum 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.
  • The caravan is at risk of repossession if you do not maintain contractual repayments.
  • You do not own the caravan 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 caravan.
  • Protection under the Consumer Credit Act Termination Rights and Protection under the Consumer Rights Act.
  • The caravan should be used for leisure purposes only and cannot be used as your main dwelling.​​​​​​
  • 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 Caravan product guide for more information.

Product guide (PDF, 1.5MB) Opens in a new tab.

Compare our leisure finance products

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

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