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Broadly speaking, Personal Contract Purchase (PCP) is similar to Personal Contract Hire, with the exception of one additional option at the end of the agreement period. Whilst PCH means that you have no choice but to return the car at the end of the period, PCP also provides you with the option to pay the outstanding balance or residual value of the car to become the vehicle's owner.
When entering into a PCP, it is important to remember that you will still be subject to mileage restrictions throughout the duration of your agreement, and it is important to keep within these to maintain the residual value of the car.
Whilst it is not necessary to purchase the car at the end of the agreement, many people go on to choose to refinance the outstanding balance and take ownership of the vehicle.