Questions customers ask most often about PCP car finance.
Yes. If you have a vehicle to trade-in, you can use its value as all or part of your deposit. The value will be agreed with your dealer.
Yes, we offer PCP on used cars, up to 3 years old as well as new vehicles. The car must be purchased from one of our authorised dealers and must meet our criteria for age and mileage at the start of the agreement. You can check if a particular motor dealer is a PTSB credit intermediary on the CCPC website: see list of authorised credit intermediaries here.
Back to top
PCP offers lower monthly repayments and a choice of what to do at the end of the term. CHP provides fixed monthly repayments, with ownership of the vehicle transferring once all repayments have been made. A Personal Loan allows you to own the vehicle from day one and repay the cost over an agreed term.
The car is legally owned by PTSB Asset Finance, until the optional final payment and the purchase fee are paid at the end of your agreement. The car will be registered in your name from the outset.
Back to top
Four key figures make up your PCP agreement. Understanding each one helps you compare your options confidently.
A copy of your credit agreement will be issued to you by post at the start of your agreement. If you require another copy, or details such as your payment schedule, current balance, or settlement figure, you can contact us on 0818 210 263. Lines are open Monday to Friday, 9am to 5pm (excluding public holidays).
Yes, you can settle the agreement at any time. Contact us on 0818 210 263 to find out more about your settlement figure. Lines are open Monday to Friday, 9am to 5pm (excluding public holidays).
Interest on the total amount borrowed is calculated upfront and paid over the term of the PCP agreement. The capital portion relating to the Guaranteed Minimum Future Value (GMFV) is deferred, or ‘parked’, until the end of the agreement. Throughout the term, your regular rental payments cover (i) capital and interest owed on the amount borrowed excluding the GMFV, and (ii) interest owed on the GMFV amount. The capital element of the GMFV becomes payable if you choose to own the asset at the end of the agreement.
If you are struggling to meet your monthly repayments, please contact us as soon as possible on 0818 210 263. We have a dedicated support team who can discuss your situation. Missing repayments without contacting us can affect your credit record and may ultimately result in the vehicle being recovered. Lines are open Monday to Friday, 9am to 5pm (excluding public holidays).
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, so it's important to understand this from the beginning, and estimate your expected mileage as accurately as possible. The charge per kilometre is outlined in your Fair Wear and Tear agreement.
If you go over your agreed annual mileage allowance, you may be charged an excess mileage fee for each km over the limit at the end of your agreement. The charge rate is set out in your fair wear and tear agreement.
No, you currently cannot change your mileage during the agreement. 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, so it’s important to understand this from the beginning, and estimate your expected mileage as accurately as possible.
Fair wear and tear refers to the normal deterioration of a vehicle through everyday use over the term of the agreement, things like light interior wear consistent with the age and mileage of the car. Damage beyond this
such as significant dents, large scratches, cracked glass, worn or missing tyres, or damage to upholstery, may result in charges. The conditions regarding fair wear and tear are detailed in your fair wear and tear
agreement. The fair wear and tear agreement is between you and your Motor Dealer.
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.
You must have comprehensive motor insurance on the vehicle for the duration of your PCP agreement, this is detailed in the terms and conditions of your finance agreement.
At the end of your agreement, you choose what happens next:
• Trade the car in and use any value or equity towards your next car; or
• Keep the car by paying the optional final payment (also known as GMFV); or
• Return the car to the car dealership, with no further financial commitments.
We’ll be in touch before your agreement ends to guide you through your options and support you with your next steps.
The GMFV (also known as the optional final payment), is the value your car is guaranteed to be worth at the end of your agreement. This amount is set at the start of your agreement and represents the portion of the car’s cost that you do not pay off during the term. The GMFV is calculated based on factors such as the car’s make, model, age, the agreed mileage, and the length of the agreement.
Because this value is guaranteed, you are protected if the car’s market value is lower than expected at the end of the term. If the car is worth more than the GMFV, you will have positive equity, which can be used as a deposit towards your next car.
At the end of your agreement if you choose to sell your car either to a dealership or privately, the difference between the sale price of the vehicle and the agreed GMFV is known as your equity. You can use this equity
towards a deposit for your next vehicle.
Yes, this is one of the key protections of a PCP agreement. The Guaranteed Minimum Future Value is fixed at the start of your agreement and guaranteed by your car dealership, regardless of what happens to car prices during the term. If the market value of your car falls below the GMFV at the end of your agreement, you can simply return it and walk away with no additional liability (subject to mileage and condition terms). At the end of the agreement, you will never owe more than the GMFV to take ownership of the car. It is important to note that if the actual value of your vehicle is close to the GMFV, you may not have any excess value when trading it in. This means you may need to provide a deposit for your next vehicle.
If you wish to keep your car at the end of your PCP agreement but do not wish to pay the optional final payment in a single lump sum, refinancing may be an option. You can refinance the optional final payment through a new credit agreement and continue making monthly repayments to eventually own the car. This is subject to a new credit assessment and approval. Please note that refinancing will increase the overall cost of credit. The optional final payment is fixed and will not change during your agreement term.
