PCP vs HP

HP has higher monthly payments but no balloon and no mileage restriction. PCP keeps you flexible with a lower payment, at the cost of a final decision.

Compare

Same car

Car price

Deposit

APR

Agreement duration

Number of regular paymentsoften term − 1

pmts

PCP balloon

Assumed depreciation

%/yr

PCP — return

£400/mo

True cost total: £19,216

PCP — keep

£338/mo

True cost total: £16,232

£307/mo

True cost total: £14,735

Estimates only, based on the methodology stated above — actual lender or dealer figures may differ. RealCarCost is not a broker, lender or financial adviser, and nothing here is financial advice or a personal recommendation.

Last reviewed: 30 August 2026. Figures and methodology are reviewed as UK rates and rules change.