HP Or PCP?

Crawford Clarke Cars

Hire Purchase (HP)

This is the most straightforward method of purchase, where you'll pay the price of the car off monthly, over an agreed period. This is ideal for customers who like outright ownership of their car. What's more, there's no mileage limit which makes it great value for drivers who cover significant miles.

It's not always necessary to have a deposit, but putting down as much as you can up front will help to reduce the balance to be cleared. This brings down your monthly repayments and also reduces the amount of interest incurred.

How does it work?

  • Choose the car you like
  • Choose the most suitable repayment period, between 24 and 60 months
  • You agree a deposit and monthly payment to suit your budget
  • At the end of the agreement, as long as all the payments have been made, the car is yours

What are the key features?

  • At the end of the agreement you own the car with nothing further to pay
  • Fixed monthly payments help with your budgeting
  • Fixed interest rate

Personal Contract Purchase (PCP)

PCP is fast becoming the most popular way to pay for a car today. This is largely because it's affordable, flexible and is ideal for customers who wish to change their cars at intervals between 24 and 48 months.

It's not always necessary to have a deposit, but putting down as much as you can up front will help to reduce the balance to be cleared. This brings down your monthly repayments and also reduces the amount of interest incurred.

How does it work?

  • Choose the car you like
  • Choose the most suitable repayment period for you
  • Agree on your annual mileage
  • Decide on the deposit contribution that suits you
  • You are then given a Guaranteed Minimum Future Value which becomes your Optional Final Payment. This final value is guaranteed by the finance provider.
  • At the end of the agreement, you will have three choices: part exchange your vehicle for another car, keep the car and pay the final payment or hand it back. As long as it is within the agreed mileage and in good condition you will have nothing further to pay.

What are the key features?

  • Fixed monthly payments mean you always know what you will be paying so there are no nasty surprises
  • A Guaranteed Minimum Future Value, so you know from day one the minimum you will receive as a part exchange in the future
  • Lower monthly payments than traditional forms of funding because the final payment at the end reduces your monthly commitment
  • Changing your car regularly saves money on repairs and maintenance