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Peugeot launches PCP car finance with insurance and servicing included

Motoring Research logo Motoring Research 25/11/2020 Gavin Braithwaite-Smith
a car parked on the side of a building: Peugeot 208 © Provided by Motoring Research Peugeot 208

Peugeot’s PCP Plus is a four-year finance deal that includes two years of insurance and servicing within a single monthly payment.

It means that buyers can fix all of their major running costs, apart from fuel, for two years. After this point, if a customer decides to settle early and purchase a newer car, they have only paid for the servicing and insurance they have used. PCP Plus is available on all cars in the Peugeot range.

PCP (Personal Contract Purchase) is the most popular form of car finance. In simple terms, you only pay for the car’s predicted depreciation during the term of the contract. That’s the difference between the value of the car new, and its expected value when the deal ends.

A car will typically lose around 40 percent of its value over the first three years. Thus if a new car costs £10,000 new, it will be worth £6,000 after 36 months. That leaves £4,000 to finance via PCP, which will take the form of a deposit and fixed monthly payments. At the end, you have the option to pay the remaining £6,000 to buy the car, or hand it back and move on.

‘Simplifying the purchase process’

a car parked in front of a building: Peugeot 508 © Provided by Motoring Research Peugeot 508

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This is the first time car insurance and servicing have been included in a PCP deal. David Peel, managing director of Peugeot UK, said: “PCP Plus is a completely new ownership scheme that has been designed with the customer’s priorities in mind. By combining PCP payments, insurance cover and servicing fees in a single plan, we are simplifying the purchase process and cutting costs for our customers.

“We’ve also recognised that many PCP buyers opt for early settlement and purchase a new vehicle mid-way through their contract, and by limiting the insurance cover and servicing to two years, customers will only pay for the services they’ve used.”

Peugeot will continue to offer its innovative Just Add Fuel scheme. It includes finance, insurance, tax, warranty, roadside assistance and servicing within a single monthly payment. Drivers aged 18-20 can apply for Just Add Fuel with a telematics device.

It’s possible to buy a new Peugeot without visiting a showroom. Click here for details on which car brands offer an online buying service.

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