FAQs

Buying outright means paying the full price upfront in cash — you own the car immediately, no interest, no monthly payments. Hire Purchase (HP) spreads the price (minus any deposit) over fixed monthly payments with interest; once the last payment is made, the car is yours.

Personal Contract Purchase (PCP) also spreads payments over a term, but part of the price is deferred to a final "balloon" payment (the Guaranteed Future Value). Monthly payments are usually lower than HP because you're not paying off the whole car. At the end you can pay the balloon to keep it, hand it back, or trade it in.

Personal Contract Hire (PCH) is renting rather than buying — you pay an initial rental plus fixed monthly payments for a set term, then hand the car back. You never own it, so there's no balloon and no resale value to think about.

It depends on the car, the deal, and how long you plan to keep it — that's exactly what this tool works out for you. Add a car, pick the deal type you've got a quote for, and compare the net cost against your other options.

Use "Already own it" mode on that car's card. Enter what it's worth today and how many months of finance you've got left (if any), and it'll work out the real cost of keeping it against switching to something else.

It depends on how long you keep the car. HP is usually cheaper overall if you're paying it off for good, since you're covering the full price rather than deferring a chunk of it to a balloon payment with interest. PCP tends to win on monthly cost, but if you pay the balloon to keep the car at the end, the total often ends up higher than HP over the same term. Add both as separate cars with your real quotes to see which wins for your numbers.

Leasing (PCH) usually has the lowest monthly cost, since you're only paying for the car's depreciation over the term, not its full value. But you never build any equity — you hand it back with nothing to show for it, whereas buying leaves you with a car you own or can trade in. Whether that's "cheaper" depends on whether you value low monthly cost or ending up with an asset.

It comes down to what you want out of the car, not just the monthly price. Leasing suits people who want the lowest possible monthly cost, like changing cars every few years, and don't mind sticking to a mileage allowance and handing it back in good condition — go over on mileage or wear and you'll be charged for it. Buying (outright, HP or PCP-then-keep) suits people who want to own something at the end, drive as much as they like, and modify or sell whenever they choose. If you're not sure which matters more to you, add a lease and a purchase option for the same car here and compare the actual numbers side by side.

More than just the finance payments — insurance, servicing, road tax and fuel (or charging) usually add up to a similar amount again over a typical ownership period. This tool factors all of that in automatically for every deal type, so the numbers you see already include running costs, not just what you'd pay the finance company.

Yes — HP, PCP and lease APRs are all based on your credit profile, so the rate you're offered can vary a lot between lenders. The APR and monthly figures you enter here are illustrative; always compare against the real quote you're offered, since a slightly better or worse rate can change which deal type comes out cheapest.

Usually, but it can be expensive. Ending a PCP early means settling the remaining finance, which may be more than the car's trade-in value early in the agreement. Most leases charge an early termination fee too, often several months' payments. If there's a real chance you'll want out early, check the exact terms before signing rather than assuming you can walk away cheaply.