Car finance, made clearer.
Explore the differences between HP and PCP. Availability depends on the lender, your circumstances and the vehicle.
Hire purchase (HP)
You spread the cost through monthly payments over an agreed term. A deposit may be required. The finance company owns the vehicle until you have made all payments and paid any option-to-purchase fee. You cannot sell the car without settling the finance or obtaining the lender’s permission.
Personal contract purchase (PCP)
A PCP agreement typically includes a deposit, monthly payments and a larger optional final payment. To keep the car, you must pay the optional final payment and any applicable fee. Alternatively, you may return it subject to the agreement’s conditions. Excess mileage, damage or poor condition can result in charges. Refinancing the final payment is not guaranteed.
The costs that matter
Before agreeing, check the APR, total amount payable, deposit, term, monthly payments, fees and any final payment. A lower monthly payment does not necessarily mean a lower total cost. Our calculator provides an illustration, not a personalised quote; request a written quotation for any offer available to you.
Borrowing responsibly
Only proceed if repayments fit your budget. Missing payments can damage your credit record and may lead to additional charges or repossession. For free, independent money guidance, visit MoneyHelper.
Our role and commission
We are a credit broker, not a lender. We do not charge for our services but receive commission from the lender. The amount may vary by product, amount borrowed or credit profile. Ask us about the commission and lender arrangements before deciding.