HP vs PCP: Understand the Difference

Buying a car can be super exciting, but figuring out how to pay for it? That can be a bit confusing which is why our team at Eden Motor Group are ready and eager to help you.

Two common ways people finance their wheels are PCP (Personal Contract Purchase) and HP (Hire Purchase). At Eden Motor Group, we’re delighted to be able to provide you with financing options that make purchasing as affordable as can be, with both Hire Purchase and Personal Contract Purchase schemes available. Let's break down these two options in simple terms so you can pick the one that suits you best!

What's PCP?

PCP can be a fantastic option if you love the idea of driving a new car every few years, want lower monthly payments, and enjoy having flexibility at the end of the agreement. However, it's essential to understand the terms and conditions fully before signing anything, especially regarding mileage, conditions, and the final balloon payment.

Deposit: Typically Around 10% of the Car's Value.

PCP is like renting a car, but with the option to buy it later. Since you're not paying off the entire value of the car during the agreement, your monthly payments are typically lower compared to other finance options like Hire Purchase (HP). This can make getting that dream car a lot more affordable on a month-to-month basis.

However it is important to know PCP agreements often come with mileage restrictions, which means you'll need to keep an eye on how much you're driving. Exceeding the agreed mileage can result in additional charges when you return the car.

Our team has expert sales people across Vauxhall, Hyundai, Mazda, Peugeot, Suzuki and MG who can assist with any questions you have. So call us today or find your nearest dealership.

What is HP?

Hire Purchase (HP) finance is a direct route to car ownership, offering simplicity and clarity throughout the process. With HP, you have the option to make a deposit, although it's not always necessary, and then you'll commit to fixed monthly payments over an agreed-upon period, usually ranging from one to five years.

Unlike some other financing options, once you've completed all the payments, including any final fees, the car becomes legally yours. This straightforward ownership structure is one of the main advantages of HP, providing peace of mind without the need for large balloon payments at the end of the agreement. With fixed monthly payments, budgeting becomes more manageable, and you have the flexibility to tailor the repayment period to suit your financial circumstances.

Additionally, HP typically doesn't impose mileage restrictions, allowing you to drive the car as much as you like without incurring additional charges. While interest charges and creditworthiness are factors to consider, HP remains an appealing option for those seeking a clear path to car ownership without complications.

You can learn more about the HP finance options we offer at Eden Motor Groups go to our car finance page here.

Still Unsure Which Option Would Work the Best for You?


  • You like the idea of lower monthly payments.
  • You enjoy the flexibility to switch cars every few years.
  • You're not sure if you want to commit to owning a car long-term.


  • You prefer the simplicity of straightforward ownership.
  • You want to own the car outright without any big payments at the end.
  • You plan to keep the car for a long time and want to avoid mileage restrictions.

With Eden Motor Group we offer these clear choice finance options so you can find your dream car let us help book you in for a test drive and discuss in depth your options.