PCP on Used Cars - do you get the choice?
Thu, 31 Aug 2017

As many as 90% of those buying a brand new car using a dealer's finance take out a Personal Contract Purchase (PCP) agreement. This is where the monthly payments are lower as you are deferring a percentage of the value to pay at the end called the Guaranteed Future Value (GFV). This method first appeared in the late 80's and has been popular ever since. Most manufacturers in fact promote this with the franchise dealer and offer lower interest rates and deposit contributions to encourage buyers to take this route as it helps to build loyalty towards the brand and makes the monthly outlay easier to manage.

Not always the case

Where Used Cars are concerned however, the same principle applies.  The amount of people taking out a PCP agreement is much less and opportunities for these buyers are not readily available. Popularity is growing for Used Car PCP’s, by not having this option available means dealers could be missing out on sales.


Used Car PCP finance not being offered 

Recent findings show that this could be due to two factors: one is that the age of the car and the mileage if this falls outside the criteria. Finance companies are reluctant to defer an element of the purchase price if they feel the car will not hold a strong future value. Two: the dealer does not wish to spend time explaining the benefits of a PCP - important when selecting the best way to buy a car. Read more about the difference between PCP and hire purchase here


Payment Swap offers choice of finance 

The newly launched consumer based car buying website www.paymentswap.co.uk allows Used Car buyers to go online and in under a minute, toggle between HP and PCP to find your ideal monthly payment.  Not only is this freely available for users to compare which is more affordable, the website also offers clear descriptions and short videos to watch to make sure you have a full understanding of each product to ensure this suits your requirements.  These are aimed at helping buyers to make an informed decision by themselves. In addition, Live Chat and telephone assistance are also available 7-days a week if you prefer to speak to one of our fully trained specialists.


FCA accredited 

The Finance Conduct Authority (FCA) ensure that all explanations of finance offered must be fair, clear and not misleading, with hefty fines being imposed on companies who don't comply. In the case of Payment Swap, its facility has received high praise for the attention to detail and ease of use. Payment Swap's parent company Automotive Media Ltd have spent the best part of a year getting the process right before we felt it was good enough for our customers to use. Being able to buy a car online and do everything including signing the finance documents was a lengthy process to ensure it complied with all Treating Customers Fairly (TCF) principles and FCA regulation - something we believe very few other companies have achieved.


Lower payments

With over 20,000 cars on its website, Payment Swap can offer lower payments through its PCP facility to around 85% of cars featured, giving buyers the choice of normal HP with up to 60 months to pay, or up to 48 months PCP with lower payments. 

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Payment Swap ® is a registered trademark of Automotive Media Ltd. Privacy, Cookie Policy, Terms and Conditions

Depending on the amount you owe, there is a likelihood your new agreement’s term will be extended beyond your existing arrangement. Subject to status. The renewal of a new agreement is subject to underwriting conditions and may not always be possible. Payment Swap is a registered trademark brand, operated in accordance with FCA guidelines. Automotive Media Ltd is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 757685). Automotive Media Ltd is a firm registered in England and Wales under company number 9679212. All rights reserved. Written quotations detailing a choice of finance lenders will be made available from Automotive Media Ltd, who are a credit broker and not a lender and whose name is listed on the FCA register.

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