PCP vs HP vs Personal Loan
Enter a car price and see all three finance types side-by-side. Total cost, monthly payment, equity growth, and ownership status — everything you need to make an informed choice.
Your numbers
Total Amount Payable
£29,386.98
Ownership
- • Balloon: £10,000.00
- • 10,000 miles/year limit
Total Amount Payable
£28,136.10
Ownership
- • No balloon payment
- • No mileage limits
Total Amount Payable
£27,677.51
Ownership
- • Unsecured — car is yours
- • Typically best APR
Total cost breakdown
Ownership timeline
Understanding the trade-offs
Personal Contract Purchase
Monthly cost
Lowest — because you're not paying off the full car value
Total cost
Usually highest — the balloon payment adds significant interest
Ownership
Only if you pay the final balloon payment
Watch out for
Mileage limits, excess charges, negative equity risk
Hire Purchase
Monthly cost
Higher — you're paying off the full vehicle value
Total cost
Usually middle — more interest than a loan, less than PCP
Ownership
You own it after the last payment
Watch out for
Car is secured — can be repossessed if payments missed
Personal Loan
Monthly cost
Moderate — similar to HP but usually better rates
Total cost
Usually lowest — best APRs, no balloon payment
Ownership
You own the car from day one — it's yours
Watch out for
Unsecured — no Section 75 or Voluntary Termination protection
The cost of flexibility
PCP gives you flexibility — lower monthly payments and the option to return the car. But that flexibility has a price. On a typical £25,000 car:
PCP total interest
~£4,200
HP total interest
~£3,100
Personal Loan interest
~£2,800
Illustrative only. Based on 48-month term, £3,000 deposit, 6.9% APR PCP/HP, 5.9% personal loan.