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Personal Contract Plan

(PCP)

Flexible way to finance a new or used car

What is PCP  |  How does a PCP agreement work  |  End of terms options  |  Eligibility criteria  |  How to apply

What is PCP?

PCP is a Personal Contract Plan which is a form of hire purchase agreement. PCP is a flexible way to finance a new or used car (up to 3 years old), with lower monthly repayments than a comparable Consumer Hire Purchase agreement due to the repayment structure, and a choice of what to do at the end of the term.

Instead of paying off the full cost of the vehicle over the term, you finance only a portion of its value. The remaining amount, known as the Optional Final Payment or Guaranteed Minimum Future Value (GMFV), is deferred to the end of the agreement.

If you already have a PCP agreement with PTSB, see our FAQs for guidance on managing your agreement and understanding your available options.

PCP may suit you if you:

  • Like changing your car regularly and want flexibility at the end of your agreement.
  • Are looking for monthly repayments that are typically lower than a comparable Consumer Hire Purchase agreement.
  • Are comfortable with paying the optional final payment in order to own the car at the end of the agreement.
  • Are comfortable with mileage limits and adhering to the Fair Wear and Tear Agreement.

What PCP can offer

  • Minimum loan amount €5,000.
  • 10% deposit required / 30% maximum.
  • Repayment terms from two to four years*.
  • Fixed interest rates.
  • Optional final payment (GMFV).

*The term or length of your finance depends on the age of the vehicle. The car must be no more than 6 years old at the end of your agreement. For example, if the car is 3 years old, you can finance it for up to 3 years.

The vehicle must have no more than 180,000km recorded at the end of term.

PCP is just one of several ways to finance a vehicle. Compare PCP, Consumer Hire Purchase and Personal Loan to understand how they differ in areas such as ownership, repayments, flexibility and end-of-term options.


How does PCP agreement work?

  1. Deposit: This is your upfront payment (10-30%) of the car’s price. A higher deposit reduces the amount you borrow and will lower your monthly payments. You can also use the value of a trade-in vehicle as your deposit or part of your deposit.

  2. Monthly Repayments: Your repayments will be spread monthly over the agreed term (typically 24-48 months). These repayments cover the difference between the car's price, your deposit, and the GMFV plus interest on the full amount financed. Because the optional final payment is deferred to the end of the term, monthly repayments are typically lower than those on a comparable hire purchase or personal loan.

  3. End-of-Agreement Options: At the end of the agreement, you have three options, subject to meeting the terms of your agreement.


Your options at the End of the PCP Agreement

  1. Use your car as a trade-in for a new PCP agreement: If the market value of your car is higher than the GMFV, the difference can be used as equity towards the deposit on your next vehicle should you choose to enter into a new PCP agreement. If the market value of your vehicle is close to the GMFV, there may be little or no equity available when trading it in. In this case, you may need to provide a deposit towards your next vehicle.

  2. Keep the car by paying the final amount outstanding: Make the optional final payment (also known as the GMFV) and the car is yours with no further financial commitments.

  3. Return the car: Hand the car back with nothing more to pay, subject to fair wear and tear and your agreed mileage terms are met.

Finance Amount: €26,360 at a fixed rate of 6.92% APR over a 3-year term will require 36 monthly payments of €493.68, and a final optional payment of €12,521 to own the vehicle.

Total Cost of Credit is €4,060.14. A documentation fee of €63.33 and a purchase instalment fee of €63.33 applies. The total amount repayable is €30,420.14.

Total Commission amount paid by PTSB Asset Finance to the Credit Intermediary is €790.80 (3% of the amount financed).

 

Key PCP terms

GMFV

The GMFV (Guaranteed Minimum Future Value) is the portion of the vehicle's value that is deferred until the end of the agreement. This reduces your monthly repayments throughout the term. The GMFV is equal to the optional final payment and is only payable if you choose to keep the vehicle at the end of the agreement.

Learn more

Annual Mileage Allowance

You agree an annual mileage limit at the start of your agreement between 10,000 and 30,000 km per year. Exceeding your agreed mileage may result in excess mileage charges at the end of the agreement.



Learn more

Find out other terms and more details of how PCP Finance works on PCP FAQs page.

Things to consider
  • If you choose to own the car at the end of the agreement, a purchase fee of €63.33 will apply.
  • You do not own the car until you make the optional final payment, which can be a substantial amount.
  • Mileage limits apply, exceeding them may result in charges at the end of your agreement. The charge per kilometer is outlined in your Fair Wear and Tear agreement.
  • You cannot sell, modify or alter the car without the bank's consent. For more information on vehicle modifications and return conditions, refer to your PCP Agreement and Fair Wear and Tear Agreement.
  • When you return your car, normal wear and tear is expected and accepted in line with the Fair Wear and Tear Agreement. However, if the car has damage or excess wear beyond the standards set out in Agreement, additional charges may apply.
Important Information

You only pay the optional final payment (also known as GMFV), if you decide to keep the car.

Eligibility Criteria

To apply for our PCP car finance, you will need to meet certain criteria. Meeting these criteria does not guarantee approval, all applications are subject to a credit assessment.

  • Age: Available to personal consumers over 18s only.
  • Location: Residents of the ROI only.
  • Employment & Income: You will need a regular income sufficient to meet the monthly repayments comfortably. We may ask for proof of income such as recent payslips or bank statements.
  • Credit History: We will carry out a credit check as part of our assessment.
  • The Vechicle: PCP is available on new and used cars (up to 3 years old) purchased from one of our authorised dealers. The vehicle must meet our criteria for age and mileage at the start of the agreement. Private sales are not eligible. You will need to insure and maintain the vehicle.

What You Will Need to Apply (bring these to the dealership with you)

  • Proof of identity - valid passport or driving license.
  • Proof of address - utility bill or bank statement (less than 6 months old).
  • Bank Statement - the last transaction must be dated within 8 weeks of day statements are received.
  • Details of your income and regular outgoings - payslips/ revenue document (less than 3 months old,  please note some payslips do not have PPSN numbers on them).
  • Your bank account details for setting up the Direct Debit.

How to apply for PCP

PCP is available through participating authorised Motor Dealers (Credit Intermediaries). If you want to know which dealerships we work with, visit the CCPC website for more information.

Please note: PTSB Asset Finance will pay commission to Motor Dealers (acting as Credit Intermediaries) for new business finance originated through them.


Commission will be calculated as a percentage of the amount borrowed.

Warning: You may have to pay charges if you pay off a hire purchase agreement early.

 

Warning: If you do not meet the repayments on your hire purchase agreement, your account will go into arrears. This may affect your credit report, which may limit your ability to access credit, a hire purchase agreement, a consumer hire agreement or a BNPL agreement in the future.

PCP Factsheet

Click below to download our factsheet

Compare car purchase options

PCP vs Consumer Hire Purchase vs Personal Loan - compare and find out which one suits you best

PCP FAQs

Find answers to frequently asked PCP questions.

Asset Finance Commission FAQ document

Click below to find out more about how we pay commission

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