NATIONWIDE MOTOR CO · BUY WITH UNDERSTANDING
HP and PCP: understand what you are agreeing to
Compare ownership, final payments, mileage conditions and total cost before choosing car finance.
Start with what you want at the end: to own the car, return it, or review your options. A monthly figure alone cannot answer that question. This is a general explanation, not a promise that both products are available for every car or applicant.
Hire purchase: working towards ownership
With hire purchase, you pay an agreed deposit and instalments over a fixed term. The lender owns the vehicle during the agreement. Ownership normally passes after all required payments, including any purchase fee, have been made. Ask for the total payable and the ownership conditions in writing.
PCP: plan for the final decision
Personal contract purchase normally leaves an optional final payment if you want to own the car. Alternatively, you may return it under the agreement’s conditions. Mileage and vehicle-condition requirements matter, and charges may apply on return. Changing cars is not a guarantee of positive equity or acceptance for new finance.
| Compare | Hire purchase | PCP |
|---|---|---|
| Ownership | After completing the required payments and conditions | Only if you pay the optional final payment and meet the conditions |
| Final payment | Check any purchase fee | Plan for the optional final payment if keeping the car |
| Return conditions | Check contractual and statutory options | Check mileage, condition and any charges |
Before deciding
Compare the same vehicle, deposit and term. Read the APR, interest, fees and total payable. Budget for insurance, servicing and repairs. Missed payments can affect your credit record and put the vehicle at risk. Ask the team which products are actually available for your chosen car.
Further reading: Close Brothers: hire purchase ↗.
Further reading: Close Brothers: PCP ↗.