What is Personal Contract Purchase (PCP)?
Personal Contract Purchase financing is a cost-effective means of driving the latest vehicles while spreading the costs into fixed monthly repayments. Simply pay an initial deposit and agree on a guaranteed future value price of the model at the end of the set period. Your monthly payments will then cover the depreciation in value. At the end of the contract, you can choose to buy the vehicle outright by paying the guaranteed future value price or return the vehicle with no further obligations.

How does PCP actually work?​

​PCP agreements let you pay off the depreciation between the sale price and a figure known as a guaranteed future value. This means lower monthly repayments and no further obligations at the end of the agreed contract.

What are the advantages of PCP?

​The major advantages of taking out a PCP agreement are the lower monthly costs and the flexibility at the end of the contract to walk away with nothing more to pay or the option to buy outright. There’s also the ability to change models more frequently, making this ideal for those that like to drive the latest vehicles.

What should you consider when opting for a PCP?

With a PCP agreement, you’ll have plenty of flexibility available; however, should you wish to keep the vehicle, you will need to pay the guaranteed future value fee in full, or be prepared to take out another financing agreement. This could ultimately result in the model costing more to purchase than via an alternative scheme.

Can I settle my PCP agreement early?

Yes. Speak to a member of the team at Bellinger for further details on settling your agreement.

What is Hire Purchase (HP)?
Hire Purchase is a more traditional way of financing a car, yet does not differ hugely from a PCP arrangement. You will be required to pay an initial deposit followed by fixed monthly repayments. However, unlike PCP where you are paying off the depreciation in value, you will be paying off the remaining balance of the vehicle. As a result, at the end of the agreement, you will be the outright owner of the vehicle with nothing more to pay.

How does HP actually work?​

Hire purchase is a simple and convenient way of purchasing your vehicle outright. After paying a deposit, you cover the full value of the car with monthly payments over an agreed term, usually between 24 and 60 months. When the final payment is made, the vehicle is yours.

What are the advantages of HP?

The major advantage of a Hire Purchase agreement is the fact that, at the end of any agreement, you will be the overall owner of the model. What’s more, you’re also able to spread the costs of buying into manageable monthly repayments, making it simple to budget for.

What should you consider when opting for a HP?

​When opting for a Hire Purchase agreement, you should be aware that the monthly payments may seem steeper than those associated with PCP. This is because you will be paying off the overall balance of the model as opposed to the depreciation in value.

Can I settle my HP agreement early?

Absolutely. We do, of course, recommend liaising with the team at Bellinger to discuss options should you wish to settle early.


Are you looking to buy an Isuzu or Subaru vehicle? If the answer’s yes, we have flexible finance solutions designed to make your purchase as affordable and manageable as possible.

Personal Contract Purchase (PCP)

PCP is the most popular form of car financing because it provides you with three choices before you choose whether or not to make an optional final payment:

  • Make the final payment and keep the car
  • Decide not to pay the final instalment and walk away with no more to pay – effectively, you will have leased the vehicle
  • Begin a new PCP deal and choose a brand-new Isuzu/Subaru vehicle

PCP requires a deposit, followed by fixed monthly instalments paid over an agreed term.

Hire Purchase (HP)

HP goes back a lot further than PCP and it remains a much used form of financing. It too is flexible and requires the payment of a deposit, followed by fixed monthly payments. However, unlike PCP, there’s no option to decline the final payment or choose a new HP deal. You simply pay the final instalment and the vehicle is yours for good.

If you’re not sure which financing solution is right for you, please get in touch with the Bellinger Wantage showroom team for impartial advice.

Free & Fast Free Valuation When selling or part-exchanging your Car, it is essential to know what your vehicle is worth in order to get the best price.