Best car deals on PCP

PCP finance allows drivers to get behind the wheel of a more expensive car compared with a loan. Here are some of the best deals available

James Wilson
Apr 15, 2021

Car finance has completely changed the way UK motorists buy cars - with more and more drivers choosing not to buy a car at all, with many instead taking advantage of low monthly payments with the option to buy the car at the end of the contract. This is thanks to PCP - the most popular form of car finance in the UK.

By spreading the cost of a car across a deposit, a series of monthly payments and a large optional final payment (effectively what the car is expected to be worth at the end of the contract) monthly payments are lower than with an equivalent Hire Purchase deal or a loan. This means you can get a bigger, safer or more practical car for your monthly budget than would otherwise be possible.

PCP contracts typically last two to four years and at the end the driver has a choice. They can either hand the car back with nothing left to pay - provided they've stuck to the pre-agreed mileage limit and haven't caused any damage beyond fair wear and tear - make the optional final payment to actually buy the car or 'trade it in' for a new one, using any equity - that's value beyond the outstanding finance balance - to put towards the deposit on their next car.

While PCP deals are commonplace in the UK, finding the best ones can be tricky since there are so many to choose from. Sometimes a good car can prove expensive to finance or the best finance deals might be on models that don't quite suit your needs. Fear not, though. We've rounded up the best models that should be great to live with and are available for an affordable monthly payment.

These include stylish cars that will impress the neighbours but are so desirable as a second-hand purchase that they should still be very valuable when you hand them back at the end of the PCP finance contract. This in turn reduces your monthly payments compared with a less desirable car with the same cash price. And we've included some less obvious models that might lose value quickly from new, but as a result, they're available at very low cash prices second-hand, meaning you're borrowing less money in the first place.

Finance one of these and you're financing a smaller amount in the first place, so your monthly payments are likely to be lower than they would be for a rival car with a much higher cash price. Keep reading to take your pick of the great value models below - whatever type of car you're after.

Best cars deals on PCP

1. Kia Picanto

Best city car PCP deal

Used deals from £4,390
Monthly finance from £95*

The Kia Picanto has a lot going for it. Take its seven-year/100,000-mile warranty. This isn’t just industry-leading for a city car, it’s more than you’ll get on any high-end luxury car such as a Rolls Royce and means that even if you pick up a four-year old model for a low cost, you still have three years' warranty left - the same as most brand new cars.

Furthermore, while a used Rolls Royce can easily cost £2,000, £3,000 or even £4,000 per month if financed, a two-year-old well-equipped Picanto can be scooped up for as little as £160 per month. And that would have five years' warranty left, giving you some serious peace of mind.

Of the engines available, the middle of the range 1.25-litre petrol represents the best combination of usability and value. As for equipment levels, the Picanto starts packing some serious tech punch in ‘3’ specification and above. Equipment includes Android Auto and Apple CarPlay, a reversing camera and Bluetooth. Therefore, if you want that kit and can afford it, it's best avoiding more basic ‘1’ and ‘2’ versions.

KIA PICANTO BUYERS' GUIDE

2. Ford Fiesta

Best supermini PCP deal

Used deals from £4,850
Monthly finance from £96*

Year after year the Ford Fiesta sits right at the top of UK sales charts - outselling direct rivals such as the Vauxhall Corsa and Renault Clio. Its success is down to a blend of good equipment, strong engines, a great driving experience, a comfortable ride and affordability. Quite the achievement for such a small car.

Even though there is a newer version of the Fiesta now on sale, the previous version is still an excellent choice especially with the number of great PCP deals on offer. Entry-level Style versions are best avoided due to a lack of equipment but Zetec trims and above are good buys.

There are a number of engines available (including diesels) and while the turbocharged 1.0-litre EcoBoost petrol units are the most desirable, they tend to be more expensive than other versions, too. As a result, the biggest bargains are to be found with those models powered by the 1.25-litre petrol engine.

USED FORD FIESTA BUYERS' GUIDE

3. Renault Megane

Best compact family car PCP deal

Used deals from £5,048
Monthly finance from £106*

Compared to the model it replaced, the new Renault Megane is worlds apart. It's comfortable, practical, well-equipped and available with some very frugal engines. It might not be the most exciting car of this type to drive - though it is better than the previous versions - but as an overall package, it takes some beating.

Plus, thanks to arriving on the market a little while before the equivalent versions of the Ford Focus and VW Golf, there are already models available which have already had several years to lose much of their original price tag - meaning bargain used costs if you go for one of these.

Renault reshuffled the Megane’s range in the middle of 2018 renaming the models. As a general guide, Dynamique trim for cars registered before the second half of 2018 offer a good blend of equipment and price, while entry-level Play versions of those registered since mid-2018 pack impressive standard equipment, so are well worth hunting down.

RENAULT MEGANE BUYERS' GUIDE

4. Vauxhall Insignia Grand Sport

Best family car PCP deal

Used deals from £9,476
Monthly finance from £155*

Vauxhalls are sometimes pigeonholed as being boring - but the Insignia Grand Sport is far from it. Beneath those sharp looks it is spacious, good to drive, economical (with the right engine), and has a well-appointed cabin. Ignoring entry-level Design models, standard equipment includes a touchscreen media system (with Android Auto and Apple CarPlay compatibility), cruise control and a digital radio.

Despite being a great buy, Insignia Grand Sports haven’t managed to fully escape some of the negative stigmas associated with being a Vauxhall and larger hatchback models such as the Insignia are falling out of favour with many drivers, who would prefer to pay a premium for a more expensive SUV.

As a result, they lose value quickly from new. This is a problem if you buy one new - as you'll get a low proportion of the price back when you come to sell - but fantastic news if you snap up one second-hand, as you get a huge amount of car for your monthly budget due to the low used prices.

VAUXHALL INSIGNIA GRAND SPORT BUYERS' GUIDE

5. Peugeot 3008

Best SUV PCP deal

Used deals from £6,495
Monthly finance from £152*

Peugeot hit a home run with its 3008, what with its funky styling inside and out, decent levels of refinement and a range of efficient engines. Like many recent Peugeots, the driving position is an acquired taste - as the French carmaker decided to start using tiny steering wheels that you look over to see the dials - but in the 3008 the set up works quite well.

There is a substantial amount of standard equipment - included are dual-zone climate control, parking sensors, a touchscreen media system and 12.3-inch digital driver’s display, which replaces traditional dials and can be configured in several different formats.

Considering how good the 3008 is and its popularity, PCP costs are very keen indeed. Second-hand cash prices are higher for the 3008 than with some alternatives, but because there's lots of used demand for it, the car retains value well as it gets older. This reduces how much value it loses over the contract, in turn cutting your monthly payments compared with a car of the same initial price that lost value quicker.

What’s more, there are plenty of engine and gearbox options to satisfy all sorts of drivers - although expect to pay a premium for more desirable options, such as an automatic gearbox.

PEUGEOT 3008 BUYERS' GUIDE

6. Citroen C3 Aircross

Best crossover PCP deal

Used deals from £8,460
Monthly finance from £132*

Despite being a rather sensible hatchback that happens to offer a raised driving position, the Citroen C3 Aircross is, at heart, quite fun. No, it's not at all sporty, but it's fun in a pack-it-full-of-luggage-and-friends-and-go-on-an-adventure kind of fun. It looks quirky, offers decent comfort and has lots of feel-good factor, compared with less interesting alternatives.

Citroen offers the C3 Aircross with a number of 1.2-litre petrol engines plus a 1.6-litre diesel engine. Those wanting an automatic gearbox, though, are limited to petrol models only, though this is no hardship as the turbocharged 1.2-litre engines are punchy, smooth and economical.

As a new purchase the Citroen C3 Aircross can be costly for a car this size. There's no need for you to pay those prices, though, as two-year-old used versions can often be picked up for less than half of the initial price. That in turn contributes to rock-bottom PCP monthly payments, since you're financing a much smaller amount than with a new equivalent.

CITROEN C3 AIRCROSS BUYERS' GUIDE

7. Mini Convertible

Best convertible/sports car PCP deal

Used deals from £10,450
Monthly finance from £169*

Minis are inherently fun - the way they look, the way they drive, the way their interiors are designed - all of it just screams fun. The Mini Convertible takes things one step further by adding a folding roof. Prices may initially seem high, but for a fun, semi-fast convertible that can, just about, seat four passengers the Mini is a steal. The only similar rival is the Audi A3 Convertible.

Thanks to a wide variety of personalisation options when new, used Mini Convertibles come in a good spread of colours and trims so it can be worth spending a little longer searching to find a car that suits your exact tastes - as there's plenty of choice.

Cooper models will be the most readily available with low monthly payments as they are the entry-point to the range from a performance point of view, but they can still come with impressive levels of equipment if the original owner added lots of optional extras - as many did.

MINI CONVERTIBLE BUYERS' GUIDE

8. BMW 6 Series Gran Coupe

Best executive car PCP deal

Used deals from £16,995
Monthly finance from £371*

The BMW 6 Series, specifically the 640d diesel variant, is so clever it's practically witchcraft. Somehow it manages to be hugely luxurious, just as adept at cruising from London to Lisbon as it is tearing up a B road and faster than most sports cars, all the while offering an official fuel economy figure of just over 50mpg - meaning it shouldn't cost too much to run.

What’s more, on top of the Gran Coupe variants (Gran Coupe is BMW speak for a sleek four-door model) there is the choice of a two-door coupe and two-door convertible as well. The interior doesn’t let the side down, either.

Inside the 6 Series is sleek and feels well put together. Being a large car and one that is perceived to have high running costs, used prices for the 6 Series are surprisingly low - especially if you opt for PCP finance which cuts those low prices into small monthly payments.

*Representative PCP finance - Ford Fiesta:

48 monthly payments of £192
Deposit: £0
Mileage limit: 8,000 per year
Optional final payment to buy car: £2,923
Total amount payable to buy car: £11,926
Total cost of credit: £2,426
Amount borrowed: £9,500
APR: 9.9%

BuyaCar is a credit broker, not a lender. Our rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances.

 

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