Car Finance Calculator
Compare Hire Purchase (HP) and Personal Contract Purchase (PCP) options based on realistic APRs.
Calculate Payments (HP Example)
Estimated Monthly Payment
This is an illustrative example for Hire Purchase (HP). Actual rates depend on your credit profile. See our buying guides for more info.
Total Amount Payable
Total Cost of Credit
HP vs PCP
| Feature | Hire Purchase (HP) | Personal Contract Purchase (PCP) |
|---|---|---|
| Ownership | You own it at the end of the term. | You don't own it unless you pay the final balloon payment. |
| Monthly Cost | Higher (paying off total value) | Lower (paying off depreciation only) |
| Mileage Limits | None | Strict limits, excess mileage charges apply. |
| Best for... | Long-term ownership | Changing cars every 3-4 years |
Current Finance Market (Oct 2023)
Average Used Car APR: 10.5% - 12.9%
With base rates fluctuating, dealer finance isn't always the cheapest. We recommend checking a personal bank loan rate before committing to dealer finance.
Common Mistakes
- Focusing only on the monthly payment, not the total interest paid.
- Underestimating annual mileage on a PCP contract.
- Trading in a car with negative equity (value yours here).