Best PCP Car Deals February 2025
We've rounded up some of the best PCP car deals on offer in the UK today.
Personal Contract Purchase (also known as PCP) could allow you to get your hands on a new car without needing to stump up a significant sum of cash all at once.
One of the major selling points of a PCP car finance car deal is that it could mean you can get your hands on a new or nearly new car that you could not otherwise afford. It'll be more reliable than an older car, require less maintenance and, like for like, will be cheaper to run. It'll also likely come with a warranty for ultimate peace of mind.
Something to consider though is that a PCP car finance deal represents a significant long-term financial commitment because you pay for the car over monthly instalments, so it might not be for everyone.
While PCP car finance deals are predominantly offered on new cars, you'll also find them on used cars for sale as well or via a third party plan which you then use to get behind the wheel of the new or used car of your choice.
How does Personal Contract Purchase (PCP) car finance work?
A Personal Contract Purchase (PCP) is essentially a long-term financial agreement which usually takes the form of a lump sum deposit followed by smaller monthly payments. At the end of the agreement, a PCP gives you the option to buy the car by settling a final balloon payment.
How does a PCP car deal make financial sense for the dealer, manufacturer or finance company? Well, it's because your lump sum and monthly payments cover the cost of the car's depreciation as well as paying the lender a small premium on the loan.
It sounds like complicated maths but the FCA (Financial Conduct Authority) requires that everything is clearly broken down when looking at a PCP car deal. So, as well as knowing your initial deposit, monthly payments and ballon sum final payment, the length of the agreement will also be clearly labelled as will the interest you're paying on the finance, the agreed annual mileage and the cost per mile if you exceed it.
Perhaps the most revealing figure is the offer price – it shows you exactly what you're paying versus the on-the-road price if you were buying the car upfront.
You can check out the latest and best PCP car deals below, while further down the page you'll find more info about PCP deals, from the deposit needed to the optional final payment you can make.
Best PCP car deals in February 2025
Audi Q4 e-tron for £499 a month with £10,525 deposit contribution
The Audi Q4 e-tron is a posh and practical electric SUV crammed with technology and with an excellent battery range. This Sport 45 model comes with an Audi deposit contribution of over £10,000, which helps drop monthly payments down to £499 over a four-year PCP deal with a 6.9% APR. The mileage limit is a useful 10,000 per year, too.
- Deposit: £6778 (+ £10,525 Audi deposit contribution)
- Monthly payments: 47 x £499 (£23,453)
- Optional final payment: £18,375
- Total payable: £48,616
- Mileage per year: 10,000
- Representative APR: 6.9%
- Deal ends: 31 March 2025
BMW iX2 deal for £579 a month with £6500 deposit contribution
The BMW iX2 is a sporty, all-electric small SUV with striking styling and keen handling. An iX2 eDrive30 in M Sport trim could be yours for £579 a month on a four-year deal, with a low APR of 3.9% and a sizeable BMW sales offer of £6500 to give you a hand.
Deposit: £8417.18 (+ £6500 BMW deposit contribution)
Monthly payments: 47 x £579 (£27,213)
Optional final payment: £20,849.50
Total payable: £56,479.68
Mileage per year: 10,000
Representative APR: 3.9%
Deal ends: 31 March 2025
Ford Explorer for £420 a month with 0% APR and £2000 deposit contribution
The Ford Explorer is an electric SUV with a decent range, fine handling and lots of equipment. In fact, it could easily be your only car. Right now, Ford offers two 0% APR deals over three and four years, attracting a £3000 and £2000 deposit contribution respectively. We've chosen an Explorer Premium which means those who can find the £7833 deposit, and £420 a month, won't pay a penny in interest over four years.
- Deposit: £7833 (+ £2000 Ford deposit contribution)
- Monthly payments: 48 x £419.65 (£20,143.20)
- Optional final payment: £16,099
- Total payable: £46,075
- Mileage per year: 9000
- Representative APR: 0%
- Deal ends: 31 March 2025
Hyundai Tucson for £349 a month with £2500 deposit contribution
The Hyundai Tucson is one of the cooler and more sophisticated family SUV options on the market. Hyundai is offering deposit contributions on the hybrid and regular models, the latter of which we've chosen here. There's two deals available on the Tucson Advance, too. Either the £2500 deposit contribution and 5.9% APR over four years, or there's a 0% APR option where you won't pay a penny in interest over two years.
- Deposit: £3800 (+ £2500 Hyundai deposit contribution)
- Monthly payments: 48 x £348.42 (£16,724.16)
- Optional final payment: £14,141.88
- Total payable: £37,166.04
- Mileage per year: 6000
- Representative APR: 5.9%
- Deal ends: 31 March 2025
Kia Sportage for £507 a month with £1000 deposit contribution and zero deposit
The best-selling car in the UK right now, the Kia Sportage has a striking design, loads of interior space and is packed with plenty of equipment. Kia is now offering the Sportage Shadow model with two years' free servicing, no deposit and a £1000 deposit contribution. As with most PCP deals, though, you can adjust things – if you do have a deposit, you could drive down your monthly costs further.
- Deposit: £0 (+ £1000 Kia deposit contribution)
- Monthly payments: 36 x £507.34 (£18,264.24)
- Optional final payment: £18,079
- Total payable: £37,343.24
- Mileage per year: 10,000
- Representative APR: 5.9%
- Deal ends: 31 March 2025
Mercedes C-Class for £431 a month with £2000 deposit contribution
The Mercedes C-Class might be one of the smaller Mercedes saloon cars, but the latest model feels more like the larger, luxury flagship S-Class than ever before. Just like its bigger brother, the C-Class features a fantastic, tech-filled interior and superb long-distance cruising ability that make it feel every bit the premium saloon, while a handy deposit contribution helps you on your way.
- Deposit: £7584 (+ £2000 Mercedes deposit contribution)
- Monthly payments: 48 x £430.61 (£20,669.28)
- Optional final payment: £19,075
- Total payable: £47,338.28
- Mileage per year: 8000
- Representative APR: 3.9%
- Deal ends: 31 March 2025
MG4 EV for £169 per month with 0% APR
We’ve said that the MG4 is the best budget electric car, and when it’s available with 0% APR it’s even more attractive. You can drive around in the SE 125kW 51kWh model for just £169 per month, and if you want the more powerful, longer-range models then they’re just £20, £40 or £110 pounds more each month. MG is also giving buyers of any MG EV a £299 Electroverse charging credit, plus you get a £299 one-off voucher if your electricity is provided by Octopus.
- Deposit: £10,196.50
- Monthly payments: 37 x £169 (£6253)
- Optional final payment: £10,714.50
- Total payable: £26,995
- Mileage per year: 8000
- Representative APR: 0%
- Deal ends: 31 March 2025
Nissan Qashqai for £294 per month with £2300 deposit contribution
The Nissan Qashqai is one of the UK's best-selling cars, and the head-turning facelift of the current model makes it one of the most distinctive. The new look doesn't come at the cost of the big reason it's so popular as a family SUV though, as features like fold-flat rear seats and wide rear door openings are all present and correct. This deal is for a Qashqai N-Connecta with 4.99% APR and a £2300 towards your deposit , while Nissan offers varying deposit contributions and APR depending on the model.
- Deposit: £5000 (+ £2300 Nissan deposit contribution)
- Monthly payments: 48 x £294 (£14,112)
- Optional final payment: £14,919
- Total payable: £36,308
- Mileage per year: 6000
- Representative APR: 4.99%
- Deal ends: 31 March 2025
Toyota Corolla for £467 per month with £2500 deposit contribution
The Toyota Corolla is an automotive institution, much like its big rival, the Volkswagen Golf. The latest Corolla is the best yet, too, with an extremely reliable, frugal hybrid powertrain, sharp looks and stacks of equipment offered even from the entry-level Icon trim level. All Corolla models, including the estate, are offered with £2500 towards your deposit and a relatively low 2.9% APR.
- Deposit: £1000 (+ £2500 Toyota deposit contribution)
- Monthly payments: 35 x £466.51 (£16,327.85)
- Optional final payment: £12,375
- Total payable: £32,202.85
- Mileage per year: 10,000
- Representative APR: 2.9%
- Deal ends: 31 March 2025
Volkswagen ID.3 with 0% APR and £3200 deposit contribution
The Volkswagen ID.3 felt like it was a slightly rushed product when it first arrived. However, design tweaks inside and out, plus improved software are all welcome recent tweaks, while the relaxing drive and long electric range remain. Volkswagen has two PCP offers on the ID.3, either a three-year deal with 0% APR and a £3200 deposit contribution, or a 5.9% deal over four years with £6550 towards your deposit.
- Deposit: £7462.70 (plus £3200 VW deposit contribution)
- Monthly payments: 35 x £215.26 (£7534.10)
- Optional final payment: £11,653.20
- Total payable: £29,850
- Mileage per year: 10,000
- Representative APR: 0%
- Deal ends: 31 March 2025
PCP Car Deal FAQs
The initial payment for a Personal Contract Purchase (PCP) used to represent around 10 per cent of the car's value.
However, some recent offers have substanitally reduced that amount, even to the same amount as subsequent monthly payments. Manufacturers sometimes contribute to the deposit though, although be aware that this can typically involve your acceptance of a higher interest rate. To get a good handle on the financial implications, compare the On-The-Road (OTR) price with the Total Amount Payable (TAP) for a clear-cut understanding of the costs.
The lion's share of the expenditure in a PCP car deal agreement comes from the monthly instalments, spread over periods of two to four years. In general, opting for a shorter contract results in reduced interest payments.
The agreed annual mileage limit is crucial as it determines the vehicle's value at the contract's end. Exceeding this limit results in extra charges, typically around 10p per mile. To avoid unexpected costs, it's advisable to set a realistic mileage limit when arranging your agreement. In most PCP car deals, annual mileage is capped at 10,000 miles, but check the terms to ensure this is not less.
At the end of a PCP car deal, a large payment is due if you want to keep the car. This payment is based on how much the car is worth at the end, plus any extra costs – for example, if you went over your mileage limit.
You don't have to make this payment – you can return the car or swap it for a new one. If the car is in really good shape and hasn't been driven a lot, it might be worth more than this final payment, and that extra value can go towards your next car. If you choose to pay and keep the car, you'll be the only owner named on its V5C logbook. But remember, opting to keep the car usually comes with an extra fee.
With a PCP deal, you have to stick to certain rules. For example, you can't drive more than the agreed miles, and you need to service the car on time, as recommended by the manufacturer, and take good care of it. If the car gets damaged, you'll need to fix it before the end of the deal.
It's also a good idea to think about getting Guaranteed Asset Protection (GAP) insurance. This insurance helps cover the cost if your car is written off and it's worth less than what you still owe on the PCP agreement.
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