The PCP Calculator provides independent calculators to allow you to compare PCP Loans, Logbook Loans and Car Finance Loans before you apply for your car finance online. Always compare car loans before you commit to car finance.
The PCP Calculator allows you to compare the costs of financing your car through a PCP loan and provides transparency of the real costs of PCP loans including monthly payment schedules, costs and depreciation figures so you can make an informed choice when buying a new or used car with PCP finance. Please contact us if you would like additional features added to the PCP Calculator or any of the other Car Finance Calculators provided on this site.
This PCP loan calculation is for illustration purposes only and the figures may alter dependent on the PCP finance plan for your car finance. We have also identified that PCP loans vary between car dealerships based on the number of decimal places to which they apply their calculations, these varying approaches can provide stark differences to the amount you repay each month with PCP and the total amount you repay over the full term of the PCP agreement. So, shop around, PCP deals are not all the same. Always check the small print of your car finance loan agreement to ensure there are no hidden charges or caveats that affect the final valuation figure.
PCP (Personal Contract Purchase) is a type of car loan. PCP loans provide relatively low monthly repayments and make car finance very affordable.
PCP financing is based on the car's residual value, that is the value that the car is worth at the end of the contract. The car finance is then calculated based on the value of the car now minus the residual value.
Imagine you are looking to take a PCP loan on a new BMW at £30,000.00. You want the loan over 3 years. The BMW dealership provides you a residual value (commonly called Guaranteed Future Value) of £17,000.00.
In this example you pay no deposit on your new BMW so the PCP loan will be for £13,000.00 (that's £30,000.00 minus £17,000.00.
Clearly that is a very simple PCP explanation, most loans and finance attract administration fees and you may be putting a cash deposit down or receiving a dealer contribution which will affect your PCP loan amount and monthly loan repayment calculations.
Please note that a number of tese PCP loan resources and articles are linked to third party sites vut we feel they provide useful information when looking at purchasing a car with PCP finance