At Volvo Shrewsbury our trained specialists will help you find the best finance solution and tailor it to your personal requirements. We have a variety of highly competitive finance packages which enables us to provide you a choice of monthly payment or monthly rental solutions in line with your budget.

What is Personal Contract Purchase (PCP)?

Personal Contract Purchase (PCP) is a finance product that may mean lower monthly payments or a lower deposit to get a desired payment than other methods of funding.

As with other finance agreements there will be a deposit and monthly payments however at the end of the fixed term i e when you have paid your monthly payments, when you have paid your monthly payments you have three choices, 1. pay the final payment, 2. hand the car back with nothing more to pay (subject to mileage and condition) and 3. by far the most popular choice, part exchange your car where any equity you have is used as a deposit for your next car (or you can take all or part of your equity as lump sum cashback).

Can I settle my PCP agreement early?

  • Monthly payments on a car financed by PCP may be lower than a Conditional Sale option
  • If you decide not to buy the car, you can simply walk away when you've made all the payments subject to mileage and condition.
  • PCP is designed to help you drive away another new or a used car once you come to the end of the agreement.
  • If your car is worth more than the Final Payment then you can use that equity towards a deposit on a new car.

What should you consider when option for a PCP?

  • If you want to buy the car you will need to pay your final balloon payment (the Final Payment).
  • You will need to agree your mileage e g if you do 12,000 miles per year for a three year agreement your mileage allowance is 36,000 miles. If you exceed your allowance there will be an excess mileage charge. E G if your allowance is agreed at 36,000 miles and you do 36,500 miles where the charge is 14.9p per mile you will be charged £74.50
  • As with most finance agreements you won’t be able to sell the car without settling any outstanding finance.
  • If you decide to keep the car you will simply pay the final payment and once that's done you own the car.
  • You’ll need to keep your car properly insured, maintained and in your possession until your PCP Agreement is settled (paid off in full) or you change your car and dealership settles your finance

What is a Conditional Sale Agreement (CS)?

A Conditional Sale Agreement is a financing arrangement where you take possession of your car, but its title and right of repossession remain with Volvo Finance (or another funding entity) until the purchase price is paid in full.

What are the advantages of HP?

  • You’ll be able to drive away a car without paying for it immediately, this may give you the opportunity to buy a New or better Used car than you initially thought
  • Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your Hire Purchase agreement, so you'll avoid excess mileage charges.
  • Once you’ve made all of your payments (or settled any outstanding finance in full early) the ownership of the car passes to you

What should you consider when opting for HP?

  • Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the car.
  • You won’t be able to sell the car without settling the finance.
  • You won’t own the car until you have made all of your repayments or settled any outstanding finance in full
  • You’ll need to keep the car properly insured, maintained and in your possession until the finance is paid off.

Can I settle my HP agreement early?


Yes, you can end your finance early simply pay off the outstanding balance, or "finance settlement "as it is usually called, as provided from your finance company, there may be a interest rebate.

This is the same for Conditional Sale and Personal Contract Purchase. With the latter the final payment outstanding will make up part of your outstanding balance and again you may be entitled to an early payment rebate of interest.