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What is the difference between PCP and HP?
29 July 2021

What is the difference between PCP and HP?

If you are looking for car finance and weighing up the options between PCP and HP, here is a guide for you, to help you figure out which one could be the right finance option for you to go for with your next used car.

Firstly, finance isn’t right for everyone so make sure you have done your research and you are confident in your decisions, there is always help available if you are struggling to make sense of it all.


PCP stands for personal contract purchase and it is a super popular way to finance your car. We see so many customers looking for PCP, as it flexible and the deal can be built around you. You pay a deposit at the start of the agreement and then you will pay the remainder back over an agreed number of months or years. At the end of the agreement, you will be able to buy the car with a balloon payment, hand the car back to the finance company, or use it against a new finance agreement.

Benefits of PCP include flexibility, the chance to have options at the end of your agreement, meaning you are not stuck with the car if you do not want it, and the fact that monthly payments can be lower than with other finance types.



HP stands for hire purchase and it is another popular type of car finance. It is similar to PCP, but at the end of the agreement, you will own the vehicle.

This is a great type of finance if you are looking for a car or vehicle you will keep long term and just want some help with spreading the cost of it! It proves very popular with our customers and we can see why!

To find out more about car finance and whether or not it is the right option for you, come and speak to a member of the team at Autozone UK and Credit Car Now, where we will be happy to help and advise you on car finance, or your next used car purchase.