Personal Contract Purchase
Simple and transparent tailored made finance for all vehicles.
Leodis Financial is an independent broker and lender meaning that we always work
in the favour of the customer and not the manufacturers or car dealers.
PCP Finance
“Simple and transparent tailor made finance for all vehicles.”
As experts in the field of vehicle finance, we’ll provide you with all of the assistance you need to find the best financing options for our customers.
“Leodis Financial is an independent broker and lender meaning that we always work in the favor of the customer and not the manufacturers or car dealers.”
We take pleasure in providing a friendly service through our knowledgeable staff.
  • Direct access to a team of underwriters who will collaborate with you to develop answers.
  • Account managers that are dedicated to assisting you along the process.
“Find your new vehicle and get a PCP quote from Leodis Financial.”
If you require assistance, we are here to help you.
Need Our Help? Please call us on 01274 028 019
Our UK-based team is ready to assist you throughout the duration of your loan.
Contact Us Now.
Please note that PCP Finance is upto 48 months maximum.
What is PCP Finance?
Personal Contract Purchase finance packages is spreading the cost of the vehicle across a deposit, paying a series of monthly payments and with an optional final payment.
“The most common method of financing a car is through a personal contract purchase (PCP). It’s a way to pay for a car over four years, and then most people don’t go on to buy the vehicle.”
If you prefer to split your vehicle’s cost into monthly payments, then have the option to buy or not in the future, then PCP vehicle finance is the best option, it is the most common type of finance for new vehicles, with our clients loving the simplicity and options it provides yourself.
With a PCP finance package, the monthly installments are used to pay off the depreciation of the vehicle and not its value over the course of the term, basically the difference between the initial price and what the vehicle is expected to be worth when you hand it back. At the end of the PCP agreement, there is a final balloon payment that needs to be made if you want to keep the vehicle.

Having a PCP finance agreement gives you the options of affording a newer vehicle with more manageable monthly payments and the options of handing the vehicle back and having nothing else to pay at the end of the contract, the vehicle has to be in good condition, with below the agreed mileage limit and the servicing has to be kept up to date with the vehicles manufacturing guidelines.

“PCP splits price of vehicle into affordable manageable chunks, deposit, monthly payments and final payment, return the vehicle, buy it outright or trade it in.”

If you rather pick the option of buying the vehicle outright, you simply make the optional final payment.

Or, you can trade the vehicle in for a new one, taking advantage of any equity you may have built, should the car be worth more than the optional final payment needed to buy it, can be used as part of the deposit on a newer vehicle.

“PCP finance makes it easier to drive around in the vehicle of your dreams with none of the annoying hassles and large monthly payments of a loan.”

PCP does not mean you are tied into the car dealers, you don’t have to keep purchasing future vehicles from them, if you were to find a better deal on a vehicle at another car dealer, they can pay the optional final payment to buy your car from the finance company, treating it like a part exchange and you still benefit from any equity available.

  • PCP finance enables you to drive the latest and most prestigious car models in the market because only a small upfront fee is required accompanied by fixed monthly payments.
  • There is less financial risk with a PCP, you are not paying for the entire cost of the vehicle. As previously mentioned, a PCP only entails a fixed monthly payment on the life of the PCP agreement. At the end of the contract, the final purchase is optional and the car buyer is given the chance to actually own the car by paying a specified sum of money or use it as a deposit for your next car.
  • Unlike a loan that requires you to make a down payment, a PCP car lease only requires a small deposit amount.
  • You don’t need to worry about selling or disposing your old PCP car when deciding to get a newer vehicle at the end of the contract.
  • Car enthusiasts who take pride in vehicle ownership will think twice about a PCP finance deal, as the vehicle is legally owned by the finance company. The car will be yours if you opt to pay the final payment at the end of the PCP agreement. But by this time, new car models are already introduced in the market and a new PCP could be taken advantage of.
  • You are entitled to stay within the annual mileage chosen upfront. You will be charged mileage fees for any excess mileage occurred when you decide not to purchase the car at the end of the PCP agreement.
  • You are not allowed to perform modifications to the car unless authorised by the finance company. If you modified the vehicle without permission, you will pay penalty charges if you decide not to buy the car at the end of the PCP agreement.
  • There will also be a penalty fee imposed on the PCP agreement if you decide to cancel the contract and return the car.
You can settle your PCP finance deal early; however the finance company will require you to pay off the difference between what your car is worth now, and what you still owe in negative equity. Although, you may find that at the end of your term your car is worth more than the Guaranteed Future Value, which means you’ll have some positive equity to contribute towards your next car.

Simply put, the answer is “yes” you can cancel any PCP or HP finance agreement early, you can hand the vehicle back to the car dealers and walk away from the agreement under your legal rights.

You must have paid at least 50% of the total amount you owe that includes any interest and fees acceptable in the terms and the vehicle must be kept in good condition, if you have not taken reasonable care of the vehicle you will not be able to return the car back to the dealers.

If these conditions are met, you can sign the car back over to the dealer through a voluntary termination clause with no more payments to make.
There are three options to choose from when your PCP term ends:

  • Return the car to the finance company within the terms of your agreement
  • Pay the balance owing on the finance agreement and keep the vehicle
  • Swap your current vehicle for a new one and new agreement
With a PCP finance agreement, you can pick whether or not you wish to keep the car at the end of the contract. You can choose from three different options:

First option is, you can own the vehicle by paying off the balloon payment. You can claim outright possession once the payment has been made, please note that lenders may charge an extra fee of up to £500 for the transfer, either check the terms and conditions or speak with the advisor.

Second, you have the option of returning the vehicle and leaving. There will be nothing left to pay unless the vehicle is in poor condition or you’ve over the mileage restriction.

You won’t be able to collect the remaining equity in cash until you first make a balloon payment on the vehicle and then sell it.

A great financial advantage of a PCP finance agreement is when the car’s value has dropped more than expected by the end of your PCP arrangement, you can simply return it and let the loan company deal with the decrease in value.

The most popular way our clients are purchasing their new car is through a PCP finance deal, the PCP calculator above will give you an idea how the finance works.

Enter the amounts to give yourself an idea on what the monthly payments will be but please remember these are only estimates and to be used as a guide, you shall have to check what the balloon/ final payment will be at the end, which is normally between 45% and 55% of the original value of the vehicle.

An example, if you were to borrow £30,000.00 over 3 x years with a balloon/ final payment of £17,000.00, your PCP loan amount shall be £13,000.00 and monthly payments will be approximately £400.00 taking in account interest rates and fees.

Please note that the more mileage you use, the higher the final balloon payment shall be at the end.

There are fees that can accumulate and become due at the end of the transaction you must be aware of, they are both avoidable – these expenses are divided into two categories.

Over stepping mileage.

When your PCP loan agreement starts, you’ll be asked how far you plan to drive the vehicle each year in mileage.

The dealer will use this information to calculate as accurately as possible what the car’s value will be at the end of the contract, allowing them to set your monthly payments and the balloon payment. A car that has been driven sparingly is worth significantly more than one that has logged a lot of miles.

Damage beyond wear and tear.

It’s critical to be precise. If you exceed the agreed-upon mileage restriction, the credit firm will charge you between 7p and 10p for each mile you go over. Keep an eye out for this because an additional 2,000 miles will cost you roughly £200 at the end of your PCP term.

The lenders, like any other car rental service, will inspect your returned vehicle for signs of damage. Despite the fact that you are allowed a certain amount of wear and tear from use, the vehicle must be in resalable condition.

This means you’ll have to cover the expense of any visible damage or dents in the car that may reduce its worth.

All lending is subject to status checks and an affordability assessment.
What we do
Our Services

HP Finance

Finance your vehicle for upto 60 months

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Conditional Sales

Own your vehicle at the end of the agreed term

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PCH Lease

Drive a new car every few years

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Car Refinance

Help to pay a car finance outstanding balance

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Lets look at which one suits your needs best!

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