HP vs PCP Comparison Calculator
Compare Hire Purchase and Personal Contract Purchase car finance options to find the best deal for you.
Car Finance Comparison Tool
Enter your vehicle details to compare HP and PCP financing options side by side
Understanding HP vs PCP
What is Hire Purchase (HP)?
Hire Purchase is a straightforward car finance option where you pay a deposit, then fixed monthly payments over an agreed term. At the end, you own the car outright. HP typically has higher monthly payments than PCP but no large balloon payment at the end.
What is PCP?
Personal Contract Purchase offers lower monthly payments by deferring a portion of the cost (the balloon/GMFV) to the end. At the end, you can: pay the balloon to keep the car, return it with nothing to pay, or use equity as a deposit on a new car.
When to Choose HP
- You want to own the car at the end
- You drive high mileage (no limits with HP)
- You prefer no balloon payment at the end
- You want to modify the vehicle
- Lower total cost if keeping the car
When to Choose PCP
- You want lower monthly payments
- You like to change cars every few years
- You drive within typical mileage limits
- You want flexibility at end of term
- You're unsure if you'll keep the car