Hire Purchase (HP)
You pay the full value in monthly instalments and own the car outright at the end. Payments are higher, but it is simple and the car is yours.
Personal Contract Purchase (PCP)
You pay off the depreciation plus interest, with a large optional final payment to own it. Lower monthly cost, but you only own the car if you pay the final lump sum.
Frequently asked questions
Which is cheaper?+
PCP usually has lower monthly payments; HP often costs less overall if you intend to keep the car. Compare the total cost, not just the monthly figure.