Personal Contract Purchase (PCP) and Hire Purchase (HP) are two types of car finance agreement.
When you buy a car on finance, you’re basically borrowing money from a finance lender. You’ll pay a deposit at the start, and then pay back your debt (plus interest) in monthly instalments until your contract finishes.
The amount you pay, and your options at the end of your contract, vary depending on the type of finance agreement you choose. Here, we’ll talk you through the differences so you have a better idea of which one suits you.
Jump to:
• HP explained
• PCP explained
• HP and PCP compared: the key areas
• Choosing HP or PCP for you
When you buy a car on finance, you’re basically borrowing money from a finance lender. You’ll pay a deposit at the start, and then pay back your debt (plus interest) in monthly instalments until your contract finishes.
The amount you pay, and your options at the end of your contract, vary depending on the type of finance agreement you choose. Here, we’ll talk you through the differences so you have a better idea of which one suits you.
Jump to:
• HP explained
• PCP explained
• HP and PCP compared: the key areas
• Choosing HP or PCP for you