Car Finance Comparator
Side-by-side analysis of PCP, Hire Purchase, and Personal Loans. Model your next vehicle purchase with precision.
Monthly Payment
£484
PCP Outcome
Lower monthly cost, but you must pay the £15,000 at the end to own the car, or hand it back.
Monthly Payment
£731
No Balloon payment for standard HP.
HP Outcome
Higher monthly payments than PCP, but you own the car outright at the end of the term with no final balloon payment.
Monthly Payment
£706
Typically lowest APR but check eligibility.
Loan Outcome
You own the car from day one. Usually the most cost-effective way to buy, but monthly costs are higher than PCP.
Interest Comparison
PCP vs Finance vs Personal Loan: Which is right?
The PCP Trap
Personal Contract Purchase (PCP) is popular because of the lower monthly payments. However, you are effectively only paying off the depreciation of the car, plus interest on the entire value. This is why the total interest on a PCP can often be much higher than a personal loan, even if the interest rates are similar.
Ownership Advantage
With a Personal Loan or Hire Purchase, you own the vehicle at the end of the term. With PCP, you only own it if you pay the balloon payment (GMFV). If you plan to keep your car for a long time, a Personal Loan is almost always the cheapest route to ownership.