Typically 3–10p per mile. Check your agreement — it will be stated clearly.
A PCP (Personal Contract Purchase) calculator works out your monthly payments by financing only the car's depreciation — the difference between its price today and its GMFV at the end of the term. Because you're not paying off the full value, monthly payments are lower than most other finance types.
The Guaranteed Minimum Future Value is the amount the finance company guarantees the car will be worth at the end of your agreement. It's set at the start and written into your contract. If you want to keep the car, you pay this lump sum. If you hand the car back, you owe nothing — provided it's within the agreed mileage and in good condition. The GMFV is typically 25–60% of the car's original price, with prestige brands and shorter terms sitting higher.
You have three choices when the term ends: hand the car back and walk away, pay the GMFV to keep the car, or use any equity (the difference between the car's market value and the GMFV) as a deposit on your next deal. Most PCP customers hand the car back or roll into a new agreement.
You can exit a PCP agreement early in two ways — and they have very different costs.
If you want to pay off your PCP early, contact your finance company for a settlement figure. Under the Consumer Credit Act, lenders must provide this within 12 working days of your request. The settlement figure is the outstanding balance minus a statutory interest rebate — it will be less than the sum of remaining monthly payments, but more than you might expect. The settlement calculator above estimates this using the actuarial method, which most UK lenders use.
Under Section 99 of the Consumer Credit Act, you have the right to hand the car back once you've paid 50% of the Total Amount Payable — which includes all monthly payments plus the GMFV. This is called voluntary termination and it costs nothing beyond what you've already paid, provided the car is in good condition. The progress bar above shows how close you are to this threshold. Voluntary termination is a legal right and cannot be removed by the finance agreement, but using it may affect your credit file.
HP is a simpler alternative to PCP. You borrow the full car price minus your deposit, repay it in equal monthly instalments, and own the car outright at the end — no balloon payment, no mileage restrictions, no end-of-term decision to make. Monthly payments are higher than PCP for the same car, but the total interest paid over the full term is usually lower. Use the HP toggle above to compare figures directly.
PCP suits people who like changing cars every 2–4 years and want lower monthly payments. HP suits people who want to own the car outright, drive high mileage, or keep the car long-term. If you're comparing on pure cost, HP almost always wins over a long period — PCP's lower payments come at the cost of a balloon payment you either pay or walk away from. The right choice depends on how you use the car and what you value most.