“Contract Purchase” is a form of leasing popular in the UK for financing cars. This service is seldom used by companies. When individuals use the service it is called “Personal "Contract Purchase" is a form of leasing... More” or “PCP”. This financing service strongly resembles “financial leasing with residual value”. The contract stipulates an initial installment. Typical duration is between 24 and 48 months. There is an annual mileage limit. The lessee has the option /not the obligation/ to buy the car at the end.