Table showing unsecured personal loan ratesJigsaw
Finance’s Kurt Bradbury gives his observations of the PCP market
this quarter

  • Manufacturer finance companies
    are reporting up to 85% penetration on new PCP versus other forms
    of funding.
  • Franchise dealers are now
    looking to develop used car PCP as a means for better customer
    retention and to combat the direct lenders. Penetration of used PCP
    into total sales is a fraction of that of new, with the main reason
    being lack of marketing support from manufacturers. HP has been the
    traditional first offer for used in the showroom and this habit
    remains very difficult to break.
  • Only three of the six top
    independent finance companies offer a genuine PCP product with
    guaranteed future values. HP/personal loan products with a balloon
    are not PCP and do not have a guaranteed value.
  • Manufacturer used PCP products
    are less flexible than new and are not supported with offers or low
  • Independent PCP providers vary
    in the GMFV values and the way they are calculated. Some use a
    percentage of CAP future value, some use their own contract hire
    data to set GMFVs.
  • Contract hire GMFVs are
    normally much higher than CAP future based GMFVs.
  • There remains a huge disparity
    between GMFVs with differences being up to 30% based on identical

Table showing the best PCP deals on the market this month