What is Personal Contract Purchase?

Legal Definition
A personal contract purchase is a form of vehicle finance for individual purchasers which has similarities to both personal contract hire and hire purchase (buying on installments.)

A personal contract purchase deal (PCP) requires the customer to pay a certain amount, for a set contract period of somewhere between 24 to 48 months, with the right to drive the vehicle while ownership is retained by the funding company. This is similar to contract hire or car leasing, except that the individual customer has the right to ultimately acquire the vehicle for a previously agreed total cost. Otherwise, the customer can arrange to return the vehicle, without any further liability past the end of the contract.

A personal contract purchase is therefore a conditional sale agreement and therefore under UK law the purchaser is protected under the Consumer Credit Act 1974 and the Financial Services Regulations 2004.
-- Wikipedia