Car finance calculator: PCP vs HP
Compare PCP and HP on the same car: monthly payments, total cost and interest.
| HP | PCP | |
|---|---|---|
| Monthly payment | £555.19 | £379.74 |
| Total if you keep the car | £29,149 | £30,727 |
| Total if you hand it back | — | £20,727 |
| Interest | £4,149 | £5,727 |
With HP you own the car after the last payment. With PCP you choose at the end: pay the balloon to keep it, hand it back, or part-exchange. PCP has mileage limits and charges for excess wear.
HP or PCP?
Hire Purchase spreads the whole price over the term: payments are higher, but the car is yours at the end. PCP defers a large final payment (the balloon), so monthly payments are lower, but you pay interest on the whole amount for the whole term.
PCP suits drivers who change cars every few years; HP suits those who want to keep the car.
Frequently asked questions
What happens at the end of a PCP?
You can pay the balloon and keep the car, hand it back with nothing more to pay (if within the mileage and condition terms), or use any equity towards a new car.