What is HP Finance?
HP stands for Hire Purchase. It is a straightforward way to finance a car by spreading the cost across fixed monthly payments.
Unlike PCP, HP is designed around ownership. Once all payments have been made, including any option-to-purchase fee, the car is yours.
HP can be a good choice if you want simple monthly payments and plan to keep the vehicle at the end of the agreement.
How HP works
- Choose the car you want to finance.
- Agree your deposit and repayment term.
- Make fixed monthly payments.
- At the end of the agreement, you own the vehicle.
- No large optional final payment like PCP.
Why choose HP?
- Clear route to ownership.
- Fixed monthly payments.
- No mileage limit like PCP.
- Good for drivers who want to keep the car long term.
- Simple and easy to understand.
HP vs PCP: What’s the difference?
HP and PCP are both popular car finance options, but they work in different ways. HP is usually better suited to ownership, while PCP offers more flexibility at the end.
| Feature | HP | PCP |
|---|---|---|
| Monthly payments | Usually higher, as you pay off the full value of the car. | Usually lower, because part of the cost is deferred. |
| Ownership | You own the car once all payments are made. | You only own the car if you pay the optional final payment. |
| End options | Keep the car once the agreement is complete. | Keep it, part-exchange it, or hand it back. |
| Mileage limits | Usually no set mileage limit. | Annual mileage is agreed at the start. |
| Best suited for | Drivers who want to own the car. | Drivers who want flexibility and lower monthly payments. |
Finance is subject to status. Terms and conditions apply. Concierge Motor Finance acts as a broker, not a lender.
