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
Sep 18, 2020

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

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.

In addition to this, 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 their next deposit.

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 make the neighbours jealous 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, which in turn reduces your monthly payments compared with a less desirable car with the same cash price. Or it could be a less obvious car that might lose value quickly from new, but as a result, is available with very low second-hand cash prices.

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.

Best cars deals on PCP

1. Kia Picanto

Best city car PCP deal

Used deals from £4,390
Monthly finance from £89

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 two-, three- or even four-thousand-pounds per month if financed, a two-year-old well-specced 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 £4,980
Monthly finance from £101

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 new-generation Fiesta now on sale, the previous version is still an excellent buy 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 petrol 1.0-litre EcoBoost 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 a 1.25-litre petrol engine.

USED FORD FIESTA BUYERS' GUIDE

3. Renault Megane

Best compact family car PCP deal

Used deals from £5,480
Monthly finance from £101

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 leading the pack for driver enjoyment (it is better than the previous versions, though) but as an overall package it takes some beating.

Plus, thanks to arriving on the market a little while before the new 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 £9,099
Monthly finance from £149

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, 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 £5,694
Monthly finance from £114

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 (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.

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 £8,691
Monthly finance from £127

Despite being a rather sensible hatchback that happens to offer a raised driving position, the Citroen C3 Aircross is, at heart, quite fun. Not in the go-for-a-drive-down-a-twisty-B-road kind of fun, but in a pack-it-full-of-luggage-and-friends-and-go-on-an-adventure-while-surrounded-by-funky-French-design kind of fun.

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.

When new the Citroen C3 Aircross cost nearly £20,000 which is a lot of money for a car this size. There's no need for you to pay that - especially if you finance the car, though - as used versions around two years old can be picked up for less than half that. That in turn contributes to rock-bottom PCP monthly payments, since you're financing a much smaller amount than for a new equivalent.

CITROEN C3 AIRCROSS

7. Mini Convertible

Best convertible/sports car PCP deal

Used deals from £8,991
Monthly finance from £158

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 direct 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 the classifieds to find the right car.

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.

MINI CONVERTIBLE BUYERS' GUIDE

8. BMW 6 Series Gran Coupe

Best executive car PCP deal

Used deals from £17,350
Monthly finance from £318

The BMW 6 Series, specifically the 640d 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 swoopy four-door coupe) there is the choice of two-door coupes and two-door convertibles 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 with the assistance of PCP finance which cuts those low prices into small monthly payments.

 

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