What are the pros and cons of PCP?

When it comes to car finance, we want you to make the correct decision. To help, we’ve drawn up a list of the pros and cons when it comes to choosing PCP finance:

What are the pros of PCP finance?	What are the cons of PCP finance?
You get to choose the upfront deposit amount - zero deposit options are available too!	A final lump sum is required in order to own the vehicle
Flexible repayment terms from 24 to 48 months as standard	Exceeding the pre-agreed annual mileage will result in pence-per-mile charges
Lower monthly repayments compared to other finance solutions	Any damage above standard wear and tear will incur extra charges
A choice of three options at the end of the agreement	It is an expensive way to own a car
The chance to change your car regularly so you can upgrade	You are tied to the contract until at least 50% of the total finance cost is paid
Potentially building up positive equity towards another vehicle	Your credit rating will affect the interest rate offered by the lender
No need to worry about selling the car afterwards	Failure to keep up with repayments can result in your car being repossessed by the finance company