Car Finance Comparison Calculator
Finance Comparison
HP Monthly Payment-
HP Total Cost-
PCP Monthly Payment-
PCP Total (excl. balloon)-
PCP Total (incl. balloon)-
Total Interest (HP)-
PCP vs HP vs Personal Loan Comparison
| Feature | PCP | HP | Personal Loan |
|---|---|---|---|
| Monthly Payment | Lowest | Medium | Varies |
| Own Car at End | Optional (balloon) | Yes | Yes |
| Typical APR | 5–10% | 6–12% | 3–7% |
| Mileage Limit | Yes (8–10k/yr) | No | No |
| Early Settlement | Allowed | Allowed | Allowed |
PCP offers lower monthly payments but you don’t own the car unless you pay the balloon. HP is more expensive monthly but you own the car at the end.
UK Car Finance Key Facts
Avg PCP APR
6–9%
Avg HP APR
7–11%
PCP Mileage Limit
8–10k/yr
Excess Mileage
5–15p/mile
Typical Deposit
10–20%
Common Term
36–48 months
How to Use This Calculator
1
Enter car price
Input the total on-the-road price of the vehicle you want to finance.
2
Set your deposit
Enter the upfront payment. A larger deposit reduces monthly payments and total interest.
3
Choose the term
Select the finance period. 36 months is most common for PCP.
4
Enter the APR
Input the annual percentage rate offered by the dealer or lender.
5
Set PCP balloon
For PCP comparison, enter the guaranteed future value. Set to 0 for HP-only calculation.
Frequently Asked Questions
What is PCP finance?
Personal Contract Purchase is a form of car finance where you pay lower monthly instalments plus a large balloon payment at the end if you want to keep the car. You can return the car, pay the balloon, or part-exchange it.
What is HP finance?
Hire Purchase spreads the cost of the car over monthly instalments. You own the car once all payments are made. Monthly payments are higher than PCP but there is no balloon payment.
Which is cheaper overall?
If you plan to keep the car, HP is usually cheaper overall because PCP charges interest on the balloon amount throughout the term. If you change cars every 3 years, PCP offers lower monthly costs.
Can I end a PCP or HP deal early?
Yes, under the Consumer Credit Act you have the right to voluntary termination once you have paid half the total amount payable. You can also settle early by paying the remaining balance minus a rebate.
What happens if I exceed PCP mileage?
You will be charged excess mileage fees, typically 5-15p per mile over the agreed limit. On a 3-year PCP with 10,000 miles/year limit, exceeding by 5,000 miles could cost £250-£750.
Official Sources & References
Data verified against official sources. Last checked April 2026.