Personal Contract Purchase (PCP)

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Covid-19 Update

Last updated - 3pm on 20/03/20

As a responsible lender authorised by the Financial Conduct Authority, we are watching the current situation closely and understand that many of our customers will be directly or indirectly affected by COVID-19.

All lenders during this challenging time are required under FCA rules to work with you to arrive at an arrangement that is in the interests of fair and appropriate customer outcomes.

We encourage you to make early contact with us and any other lenders if you are experiencing financial difficulty so that a suitable solution can be discussed which is appropriately tailored to your circumstances. Other organisations like the Money Advice Service may also be a good source of information and support:

Personal Contract Purchase

Personal Contract Purchase is a flexible funding solution that delivers peace of mind by guaranteeing a future value for your car. PCP is designed to keep your monthly payments lower compared to other types of financing like Hire Purchase. To find out more, watch our PCP video by clicking on the button below.

Personal Contract Purchase (PCP)

How it works

PCP is one of three finance products available to you from Honda Financial Services to help fund your car.

PCP allows you to keep your monthly repayments lower by deferring a proportion of the credit to the end of the agreement, as well as giving you the flexibility of three options at the end of the agreement.

So, how does this work?

  • Firstly, choose the car you want. 
  • Agree on how much deposit you would like to put down.
  • Then, estimate how many miles you will drive each year. 
  • Consider how long you would like your agreement to run, between two and four years.
  • We will then use this information to calculate a Guaranteed Future Value [GFV] – this is what we predict the value of your car to be worth at the end of the agreement.
  • The GFV is deferred until the end of your agreement.
  • Your monthly payments are worked out on the difference between the GFV and the price of the car once your deposit has been taken off and interest added. This means you have lower, fixed monthly repayments.
Retain. Return. Renew.

You decide

When it comes to the end of your agreement, you will have three options to choose from:

1. Retain – you can keep your car. Pay the GFV and the option to purchase fee, and you will own the car outright.


2. Return – you can hand your car back to us without paying the GFV. If you have exceeded your agreed mileage or the car is not in a good condition, then there may be additional charges to pay. This will be detailed in your agreement.


3. Renew – you can part-exchange your car. Then, together with your Honda dealer, you can start looking at your next Honda.

Choose the right product

Choose the right product

PCP may not be right for you. So, check out our other finance products to make sure you choose the product that best suits your needs and then contact your local Honda dealer for more details or for a personalised quote.