What is Personal Contract Purchase (PCP)?
PCP is a financial agreement whereby you make regular payments against the amount borrowed but you are required to make a one-off payment at the end of the agreement. With PCP Finance; you will be required to provide a deposit. In some circumstances, South West Nissan may have deposit contribution offers available. The repayment term of a PCP agreement is usually between 18 and 48 months, with 36 months being typical. You won’t own the car until you make the final balloon payment at the end of the agreement.

How does PCP actually work?​

1. First you’ll need to pass a creditworthiness assessment.

2. Then you’ll need to pay a deposit, usually 10% of the value of the vehicle.

3. You’ll then be able to use the car, but remember you don’t own it yet. You’ll also need to make your payments for the duration of the contract.

4. When the contract is up, you’ll need to decide if you want to keep the car, return it, or use its value to act as a deposit on a new PCP.

5. If you’re not going to keep the car, you can hand it back without any further payments.

What are the advantages of PCP?

  •  Low initial payment 
  • Fixed monthly payments 
  • No depreciation concerns if you do not want to pay the final 'balloon' payment 
  • Fixed Optional Final Payment when you first take out the contract 
  • Cost effective 

What should you consider when option for a PCP?

The decision to use PCP Car Finance depends on your personal situation. If you’re keen to have a new car on your driveway every few years, then it enables you to get more for your money. However, if you prefer to own your car at the end of any finance agreement, then PCP probably isn’t the best deal for you unless you are happy and able to afford the final payment at the end of the agreement. 

Can I settle my PCP agreement early?

You can settle a PCP deal at any stage by paying the settlement figure – in other words, the outstanding amount at that moment in time – which you can request from your lender. The car is then yours to keep or resell. The lender can only charge you up to two months' interest on the balance when calculating the settlement figure, so this should reduce the amount of interest you pay compared with continuing with the finance.

What is Hire Purchase (HP)?
Hire Purchase is a traditional financing method. The option to choose a car on Hire Purchase (HP) is one that both individuals and businesses have. It is a leasing agreement with a clear path to ownership. Companies in particular benefit from the VAT and tax advantages of HP. Our Hire Purchase page will tell you more. To compare different types of car finance and get a great deal on a new Nissan, get in touch with South West Nissan today. Visit or call your closest dealership, or send an online enquiry at any time.

How does HP actually work?​

Hire purchase (HP) is a hire agreement that gives you the option to own the car if and when you get to the end of the agreement. Before you sign up for a HP deal, you’ll need to pass a credit check in order to ensure affordability.​ HP deals are normally fixed cost, meaning the interest rate – or annual percentage rate – is set before the contract starts. The loan term is also fixed over a set number of years, and the loan is secured against the car you buy. This means if you can’t keep up with your repayments, the finance company could repossess your car. You will be the registered keeper of the vehicle and be responsible for insuring, taxing and maintaining it, but the finance company is the legal owner of the car until the loan is fully repaid. At the end of the deal, you’ll pay an ‘option to purchase’ fee if you want to own the car outright.

What are the advantages of HP?

  • It's a way to buy a car you may not have been able to buy outright
  • Unlike a personal contract purchase or personal contract hire contract, you won't need to estimate your mileage at the start of your agreement, so you won’t pay excess mileage charges
  • You own the car outright once you’ve made your final monthly payment and paid the final fee

What should you consider when option for a HP?

  • The finance deal means you have to pay off the full value of the car and so monthly payments may be higher than other finance options such as personal contract purchase
  • You won’t be able to sell the car until you've settled the finance agreement

Can I settle my HP agreement early?

Yes, if you want to settle a hire purchase agreement either partially or in full before the end of the agreement, you’re entitled to make early repayments to your finance company, once the full amount has been repaid and you legally own the car, you’re free to sell it.​

Nissan Preferences

The manufacturer's branded car finance plan is a version of Personal Contract Purchase (PCP). It gives you the most choices when the agreement comes to an end. PCP is a potential route to owning a Nissan.

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Nissan cars on finance

Every model in the new Nissan range can be purchased under a finance agreement. Whether you prefer the electric LEAF, the iconic Micra and Juke, or the confident Qashqai, you always have plenty of options. Benefit from trademark Nissan variety, as buying on finance has no impact on the trim levels, colours, finishes and accessories on offer.

Finance could give you the ability to buy a car that may otherwise be outside of your budget. It also means you do not need to take out a loan in order to buy. Most – but not all – agreements are subject to mileage limits. If you typically only drive short distances, you could make further savings by reducing the mileage on your finance plan.