PCP vs HP Calculator
Not sure whether PCP or HP is better for you? Enter your deal details and this calculator shows both options side by side so you can compare monthly payments, total interest, and overall cost.
Frequently asked questions
What is the main difference between PCP and HP?
HP (Hire Purchase) spreads the full vehicle cost over fixed monthly payments with no balloon payment. PCP defers part of the cost as a guaranteed future value (GFV), giving lower monthly payments but a higher total cost if you choose to keep the car.
Which has lower monthly payments — PCP or HP?
PCP almost always has lower monthly payments because you are only financing the depreciation (the difference between the price and the GFV), not the full amount. However, if you pay the balloon at the end, total interest on PCP is typically higher.
Do I own the car at the end of a PCP deal?
Not automatically. At the end of a PCP agreement you can pay the GFV to own the car, hand it back, or part-exchange it. With HP, you own the car once the final monthly payment is made.
Can I switch from PCP to HP mid-agreement?
Not directly. You would need to settle your PCP deal early (paying the outstanding balance minus any interest rebate) and then take out a new HP agreement. Use our early settlement calculator to estimate the cost.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.