Car Finance Calculator UK — PCP & HP
Updated: 2025
Calculate monthly payments and total cost for PCP (Personal Contract Purchase) and HP (Hire Purchase) car finance.
PCP vs HP Car Finance Explained
The two most common forms of car finance in the UK are PCP (Personal Contract Purchase) and HP (Hire Purchase). Both involve monthly payments, but differ significantly in structure and what happens at the end.
How HP Works
With HP, you pay a deposit followed by equal monthly payments over 12-60 months. At the end you automatically own the car. HP has higher monthly payments than PCP but no balloon payment and no mileage restrictions.
How PCP Works
PCP also involves a deposit and monthly payments, but a significant portion of the car value (the GMFV or balloon) is deferred to the end. Monthly payments are lower than HP, but at the end you must either pay the balloon to own the car, hand it back, or use any equity as a deposit on a new PCP deal.
Representative APR
Car finance APRs in the UK range from 0% (promotional deals from manufacturers) to 15%+ for subprime borrowers. The representative APR advertised must be available to at least 51% of accepted applicants. Always compare the total amount repayable, not just the monthly payment.