Personal Contract Purchase (PCP)
Flexible Finance with Green 4 Motor Company

Looking for a finance option that offers affordability, flexibility, and the opportunity to drive a new Mazda, Subaru, or Isuzu every few years? Personal Contract Purchase (PCP) could be the perfect fit.

What is PCP?

PCP works similarly to Hire Purchase – you pay a deposit upfront, followed by fixed monthly instalments. However, what makes PCP different is that your monthly payments cover only the depreciation of the car (not its full value), making your payments more affordable.
At the end of the agreement, there’s an optional final payment (known as the balloon payment or Guaranteed Future Value, GFV) if you want to own the car.

How Does PCP Work?

1. We agree on a “Balloon Payment” or Guaranteed Future Value (GFV) – this is the estimated value of the car at the end of your contract.
2. Your monthly payments then cover the difference between the car’s current price and its GFV, plus interest.
3. At the end of the term, you choose what works best for you:
   1. Buy the car – Pay the final balloon payment and keep the vehicle.
   2. Return the car – Simply hand it back with nothing more to pay (subject to mileage and condition).
   3. Part exchange – Use any equity towards a new Mazda, Subaru, or Isuzu.

The Benefits of PCP

• Lower monthly payments compared to Hire Purchase.
• Greater flexibility – change your car every few years without the hassle of selling.
• If your car is worth more than the GFV, you can put the difference towards your next car’s deposit.
• Available on both new and used vehicles across our full range.

What to Keep in Mind

• You’ll need to pay the final balloon payment if you want to own the car.
• You’ll agree a mileage limit upfront – exceeding it may result in charges.
• You won’t own the car unless you make the final payment.
• The car must be insured, maintained and kept in good condition throughout the agreement.
• If you choose to end the agreement early, you may have to cover negative equity (if the car is worth less than what you owe).

Can I End My PCP Early?

Yes - but it depends on your car's current value. If the car is worth more than you owe, you may have equity to put towards a new one. If not, you may need to pay the difference to settle the agreement.

At Green 4 Motor Company, we’ll help you explore the right finance solution across Mazda, Subaru and Isuzu – and ensure everything is tailored to your needs.

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