🚗Car Finance Calculator
HP vs PCP — What Will You Really Pay?
Compare Hire Purchase and Personal Contract Purchase monthly payments and total costs.
Car price£18,000
Deposit£3,000
17% of car price
APR (annual interest rate)9.9%
Representative APR varies by lender — check your agreement
Finance term48 months (4 yrs)
Balloon payment (GMFV)
£5,000Guaranteed Minimum Future Value — set by lender
28% of car price — typical PCP balloons are 30–50% of the car value
Monthly Payment
£294.40
per month for 48 months
+ £5,000 balloon payment at the end (optional)
💳
£15,000
Amount financed
📊
£4,131
Total interest
🧮
£22,131
Total cost
Where your money goes
Deposit£3,000
Monthly payments£14,131
Balloon payment£5,000
Total cost of car£22,131
HP vs PCP — Key Differences
Do you own the car?Yes — at the endOnly if you pay balloon
Monthly paymentsHigherLower
Balloon paymentNone£5,000 at end
Mileage limitsNoYes — typically 8k–15k/yr
Can you modify car?Yes (once yours)No — must return in good condition
HPPCP
Money-saving tips
• A larger deposit reduces monthly payments and total interest — even an extra £500 makes a difference.
• Always check the total amount repayable, not just the monthly payment.
• Compare the APR across lenders — dealer finance is often not the cheapest option.
• On PCP, check the mileage cap carefully. Exceeding it means per-mile charges at the end.