Features

PCP finance vs used? The modern car buying puzzle

Personal Contract Purchasing is more popular than ever, but we show which used cars you can buy with a year's worth of PCP payments

There was a time when we'd buy our cars on hire purchase or with a bank loan, and once it was paid for, we would probably start the process all over again. But nowadays, thanks to the rise of the Personal Contract Purchase plan (PCP), we don't even wait until we've paid for our car - we just hand it back after three years (or even less) and get a new one. In effect, we've got used to funding the depreciation on our cars so we never actually own them.

It's an attractive proposition for many. For a fixed monthly fee, you can have a car that's always within warranty, never needs an MoT and could have servicing taken care of, too. What's not to like? Well, for starters, there's the cost, as you pay for the privelige of running a new car.

Best new car deals 2016

To show you just how big that cost is, we've looked at what you'll typically pay annually when signing up to a PCP, and what you could buy outright in the same class for the same money. Of course, we're comparing a new car with one showing its age, so you need to take into account the fact that maintenance and fuel bills will be higher, as will road tax costs, over the period of ownership.

Best car leasing deals

But you won't have to worry about a deposit or about sticking to the mileage limits that come with PCP deals, and best of all, you'll be able to call the car your own.

Click the links below or to the side to see our pick of the cars you can grab for the price of a years finance payments...

Best used PCP alternatives:

Now check out our sister site Buyacar for some great PCP car deals... 

Most Popular

New 2021 BMW M3 launched with huge grille and 503bhp
BMW 3 Series M3 Coupe

New 2021 BMW M3 launched with huge grille and 503bhp

The new sixth-generation BMW M3 Competition saloon gets a 503bhp straight-six engine and four-wheel-drive
22 Sep 2020
New 2020 Volkswagen ID.4 electric SUV revealed with up to 323 miles of range
Volkswagen ID.4

New 2020 Volkswagen ID.4 electric SUV revealed with up to 323 miles of range

The new Tiguan-sized Volkswagen ID.4 electric SUV becomes VW’s second ID. model, rivalling the Tesla Model Y
23 Sep 2020
New Range Rover Velar PHEV launched with 33-mile electric range
Land Rover Range Rover Velar

New Range Rover Velar PHEV launched with 33-mile electric range

Land Rover has given the Range Rover Velar an update, with a new plug-in hybrid powertrain and an improved infotainment system
23 Sep 2020