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All Schemes Comparison Calculator

The ultimate car finance comparison. Enter your deal details once and see PCP, HP, PCH, and outright cash purchase compared side by side with monthly payments, total cost, and the cheapest option highlighted.

Reviewed by Richard Ross · Last updated April 2026

Balloon payment for PCP

How All Schemes Comparison Calculator works

How the four schemes are compared

This calculator runs the same vehicle through all four routes to driving it. HP (Hire Purchase) finances the full price less your deposit and amortises it over the term, so the monthly payment is high but you own the car at the end. PCP (Personal Contract Purchase) finances the same amount but defers a large chunk — the Guaranteed Future Value (GFV), or balloon — to the end, which lowers the monthly payment; you only own the car if you then pay the GFV. PCH (Personal Contract Hire) is a lease: you pay a fixed monthly rental, usually on a 3+47 structure (three months upfront then the rest monthly), and hand the car back with nothing owned. Cash is simply the purchase price with no interest. The calculator shows each monthly figure and total cost side by side and highlights the cheapest by total outlay — but read that highlight alongside what you own at the end, because PCH almost always wins on outlay precisely because it leaves you with no asset.

Worked example: a £30,000 car four ways

Take a £30,000 car, £5,000 deposit, 6.9% APR over 48 months, a £12,000 GFV, and a £350 PCH rental. HP: about £598 a month, roughly £33,680 in total, and you own the car outright at the end. PCP: about £380 a month — markedly lower than HP because the £12,000 balloon is deferred — but the total to actually keep the car is around £35,230 once you pay that balloon. Hand it back instead and you have paid roughly £23,230 for four years of use. PCH: £350 a month, about £17,500 total outlay, and nothing owned at the end. Cash: £30,000 upfront, no interest, full ownership immediately. The cheapest total outlay is PCH, but it is the only option that leaves you with no car and no equity. The cheapest route to ownership is HP. PCP sits in between: the lowest monthly cost of the three finance routes, but the highest total if you choose to keep the car.

PCP vs PCH: the comparison most drivers are actually making

For most people the real choice is PCP against PCH, because both keep the monthly payment low. The single difference that drives everything else is ownership: PCP gives you the option to buy the car at the end by paying the GFV, whereas PCH never does. Because the leasing company keeps the residual-value risk on PCH, the monthly rental is typically 10-20% lower than the equivalent PCP payment on the same car. PCP, being a regulated credit agreement under the Consumer Credit Act 1974, gives you statutory protections PCH lacks — including the right to voluntary termination once you have paid 50% of the total amount payable, and the right to settle early. PCH early exit is governed only by the lease contract and is usually expensive. Choose PCP if you might want to own the car, have unpredictable mileage, or value those statutory rights; choose PCH if you are certain you will hand the car back, want the lowest monthly cost, and drive a predictable annual mileage.

Frequently asked questions

Which car finance option is cheapest?

Buying outright with cash is almost always the cheapest in total because there is no interest. Among finance options, HP typically costs less than PCP (if you keep the car) because interest does not accrue on a deferred balloon. PCH may be cheapest monthly but you never own the vehicle.

Why does this comparison assume a 3-month initial PCH payment?

A 3-month initial payment (sometimes called 3+23 or 3+47) is the most common PCH structure in the UK. Your actual initial payment may differ, but 3 months is the industry standard used for fair comparison.

Should I always choose the cheapest option?

Not necessarily. The cheapest option (cash) ties up your capital. PCP offers flexibility to change cars regularly. HP gives ownership with fixed payments. PCH minimises hassle. The right choice depends on your cash position, how long you keep cars, and your preference for simplicity versus ownership.

Are there any other costs not included here?

This comparison covers the finance cost only. You should also factor in insurance, road tax (VED), fuel or charging, servicing, MOT, and depreciation (for cash and HP where you own the car). Some PCH deals include maintenance packages.

Can I mix schemes — for example, part cash and part finance?

Yes, the deposit acts as the cash element. A larger deposit reduces the amount financed and lowers monthly payments and total interest. Use our deposit impact calculator to see how deposit size affects each scheme.

What is the difference between PCP and PCH?

PCP is a credit agreement that ends with an option to buy the car by paying the Guaranteed Future Value; PCH is a long-term lease with no option to own. PCP is regulated under the Consumer Credit Act 1974, giving you rights such as voluntary termination at 50% of the total amount payable and early settlement; PCH is an operating lease whose early exit is set entirely by the contract. PCH usually has a lower monthly rental because the leasing company keeps the residual-value risk, while PCP can leave you with usable equity if the car is worth more than the GFV at the end.

Is PCP or PCH cheaper?

Month to month, PCH is typically 10-20% cheaper than PCP on the same car, because the rental does not have to build any equity towards ownership. On total cost it depends on what you do at the end of a PCP: if you hand the PCP car back, your total outlay is similar to PCH; if you pay the balloon to keep it, PCP costs more overall but you own an asset. PCH is the lower monthly and lower total-outlay option only because it never leaves you owning the car. Use the comparison above with your own figures to see the gap on a specific deal.

Should I choose PCP or PCH?

Choose PCP if there is any chance you will want to own the car, if your annual mileage is unpredictable, if you are buying a model with strong residual values, or if you want the Consumer Credit Act protections including voluntary termination. Choose PCH if you are certain you will hand the car back, you want the lowest possible monthly cost, you drive a predictable mileage, and you would like road tax bundled into the rental. This is an estimate; your actual costs depend on the specific deal, mileage limits, and end-of-contract charges.

Can I switch from PCP to PCH?

Not directly — they are separate agreements with different providers. To move from a PCP to a PCH you would settle the PCP early (using your right under section 94 of the Consumer Credit Act 1974) and then take out a new PCH lease on your next car. If your PCP car is worth more than the settlement figure you can use that equity towards the new deal; if it is worth less, you would need to cover the shortfall. Check your settlement figure and the car's current market value before switching.

These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.