Personal Contract Purchase (PCP) is a favoured financing option for acquiring a new or pre-owned Mazda. After selecting your vehicle, you make an upfront deposit and then proceed with affordable monthly payments over a set term, generally ranging from 18 to 48 months. Unlike other financing methods like Hire Purchase, PCP allows you to pay only for the car's depreciation—the difference between its current value and its Guaranteed Minimum Future Value (GMFV) at the contract's end. This results in lower monthly instalments.
As the contract concludes, you're presented with three choices: return the car without additional obligations, trade it in for another model, or make a one-time 'balloon payment' to become the full owner. This flexibility makes PCP an attractive choice for those looking to keep their options open.
Personal Contract Purchase (PCP) is a popular finance product that enables you to buy or lease a new or used Mazda vehicle by paying for it over an agreed period of time. When you’ve chosen your car, you’ll pay an initial deposit followed by monthly instalments over a pre-agreed term – usually between 18-48 months.
With PCP, you aren’t paying for the full value of the vehicle. Instead, you’ll pay off the depreciation value, that is, the full value of the car now minus its Guaranteed Minimum Future Value (GMFV) at the end of your agreement. This means monthly payments are typically cheaper than with other schemes such as Hire Purchase.
At the end of the contract, you have three options: you can hand the vehicle back with no further commitments, part-exchange it for another vehicle of your choice, or make a balloon payment to take full ownership of the car.
Yes, this is usually possible by asking your finance provider to supply a settlement figure. This figure will include any unpaid instalments and any remaining interest. However, it’s worth considering that the finance company may require you to pay off the difference between what the vehicle is worth and what you still owe, which could result in negative equity. Speak to one of our advisors today for assistance.
Hire Purchase (HP) is an excellent financing option if you're looking to own a new or used Mazda car outright. Once you've picked the vehicle that suits your needs, you'll kick off the process with an upfront deposit. This is followed by a series of monthly instalments, designed to cover the full value of the car. These payments are spread over a predetermined period, making it manageable to budget for your dream Mazda.
As you approach the end of the contract, you'll be required to make a final payment, commonly known as the 'Option to Purchase' fee. Upon settling this amount, the car becomes yours, granting you full ownership.
Yes – in fact, if you’ve paid off two thirds of your repayments, the options to end the finance agreement early open up. You can pay off the balance with a settlement fee, which covers the unpaid instalments and any remaining interest. Once this is paid, you’re the full owner of the vehicle.
FinanceBelow we outline the finance products available to you to fund your new car purchase. Our team are available to assist with any questions, whether up front or throughout the journey should you wish to purchase online.Tailor Your Finance
Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car. It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.What makes PCP different to Hire Purchase (HP) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term.
Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright.
