PCP vs HP vs Leasing: Which Really Saves You Money in 2025?

Choosing between PCP, HP, and leasing? Each has unique pros and cons.

Hire Purchase (HP)

• Higher monthly payments.
• You own the car at the end.
• No mileage limits.

Personal Contract Purchase (PCP)

• Lower monthly cost.
• Balloon payment if you keep the car.
• Flexible: return, upgrade, or keep.

Leasing (PCH)

• Lowest monthly payments.
• You never own the car.
• Return-only, mileage/condition charges apply.

FCA rules require lenders to display representative APR and total amount payable so you can compare fairly.