PCP or HP?

PCP or HP?
It depends on the ending.

Both get you into the car. The difference is what happens at the end — and whether you want to own it, hand it back, or keep your monthly payment as low as possible.

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01

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02

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We pass your details to lenders who consider situations like yours — including some that do not deal with the public directly.

03

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Any offers come to you from the provider direct. You decide whether to take one, and you can walk away — there is no obligation.

04

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The honest comparison

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Common Questions

PCP vs HP, answered

Ownership. On hire purchase you pay off the whole value and the car is yours at the end. On PCP a large chunk of the value is deferred into a balloon payment, and unless you pay it you hand the car back. Everything else follows from that.
PCP, almost always — because you are not paying off the deferred balloon each month. But the total amount payable across the agreement is often higher, and you finish owning nothing unless you settle the balloon.
Hire purchase, usually. It is secured against the car, so lenders take a more forgiving view of credit history. PCP depends on a reliable future value, which makes lenders choosier about who they offer it to.
Hire purchase. PCP carries an annual mileage limit with per-mile excess charges, because the balloon assumes a certain condition and mileage at the end. If you cover big miles, HP avoids that penalty entirely.
To an extent. Both allow early settlement, and both carry voluntary termination rights once you have paid at least half the total amount payable. Neither is designed to be exited early, though, so it is better to pick the right one at the start.