HP Calculator
Estimate your Hire Purchase (HP) monthly payments. HP spreads the full cost of the car over fixed monthly instalments with no balloon payment at the end — you own the car once the final payment is made.
Frequently asked questions
What is Hire Purchase (HP)?
HP is a secured car finance agreement where you pay a deposit and make fixed monthly payments over a set term. The finance company owns the car until the final payment, at which point ownership transfers to you. There is no balloon payment.
How does HP differ from PCP?
HP payments are higher because you repay the full amount financed (not just depreciation). However, the total cost is often lower than PCP because there is no balloon payment accruing interest. You automatically own the car at the end.
Can I sell a car on HP?
Technically the car belongs to the finance company until the final payment. You cannot sell it without settling the finance first. Selling a car subject to outstanding HP without informing the buyer is a criminal offence under the Consumer Credit Act.
Is HP a good choice for older or used cars?
HP is popular for used cars because dealers can offer HP on any vehicle regardless of age or mileage. PCP requires a reliable residual value prediction, which is harder for older cars, so HP is often the default finance option for used vehicles.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.