PCP guides
Plain-English explanations for the questions that come up during and at the end of a PCP agreement.
PCP agreements combine borrowing, vehicle value and contractual return conditions. These guides separate the questions so you can understand one issue at a time before speaking to your lender or dealer.
How PCP car finance works
Deposit, monthly payments, GMFV/balloon and your choices at the end.
PCP settlement figures explained
What a settlement figure is, why it changes and how to use it when comparing options.
Voluntary termination vs settlement
Why these are different routes and why the 50% VT figure is not your settlement figure.
GMFV and balloon payments
What the Guaranteed Minimum Future Value does and when you actually pay it.
Positive equity and part-exchange
How equity can arise and what to check before treating it as a deposit.
Fair wear and tear at PCP return
How condition and mileage are separate issues when a vehicle is handed back.
Ending a PCP early
Settlement, sale and voluntary termination explained as separate routes.
Negative equity on PCP
What it means when settlement is higher than the vehicle value.
Your options at the end of PCP
Return, buy or change the car: what each route means.
PCP excess mileage
How allowances and pence-per-mile charges can affect a return.
Start with your own documents
For contract-specific decisions, use the figures and wording in your signed agreement and a current lender settlement quotation. The guides explain concepts; they do not override your contract.
Primary and consumer sources
Your signed agreement and current lender figures control contract-specific amounts.
Last reviewed: 5 September 2026