What is PCP or Personal Contract Purchase?

What is PCP or Personal Contract Purchase?

Personal Contract Purchase (PCP) is similar to PCH in that in order to obtain a new car you pay a specified deposit, commit to a monthly payment over a period which is typically 2 to 4 years, and agree an annual mileage.  Legal ownership is retained by the finance company.  However, the difference between PCP and PCH is that at the end of the period you have the right to buy the car for a price agreed at start of the contract.

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