Personal Contract Purchase (PCP)
Option to buy at the end — or simply hand it back
PCP gives you lower monthly payments with an optional balloon payment at the end to own the car outright, or you can return it. Most of the monthly cost goes towards interest rather than the car's value, so you only own it if you pay the final balloon.
Advantages
- Lower monthly payments than HP
- Option to own at the end
- Flexibility: hand back, keep or part-exchange
Watch out for
- Large final balloon payment to own outright
- Mileage limits apply
- You don't own the car unless you pay the balloon
UK tax for electric cars
In the UK, company-car EVs attract just 2% Benefit-in-Kind (BiK) tax in 2024–25, rising gradually to 5% by 2027–28. Combined with salary sacrifice and VED exemptions, business EV leasing is significantly more tax-efficient than an equivalent petrol or diesel car. Rules change annually — we calculate the most cost-effective option for you free of charge.
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Which option suits you?
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