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In 2026, UK car buyers have flexible financing options designed around lifestyle and budget flexibility. Here is how Personal Contract Purchase (PCP) compares to Hire Purchase (HP):
| Feature | Personal Contract Purchase (PCP) | Hire Purchase (HP) |
|---|---|---|
| Monthly Repayments | Lower (Only pays depreciation + interest) | Higher (Pays full vehicle balance + interest) |
| End of Agreement | 3 Options: (1) Pay balloon to keep car, (2) Hand car back, (3) Trade-in for new car with equity | Vehicle is 100% yours once the final repayment is made |
| Mileage Limit | Yes (e.g. 8,000 – 15,000 miles/year agreed upfront) | No mileage restrictions |
| Best For | Drivers who enjoy switching cars every 2 to 4 years | Drivers who want complete ownership and long-term retention |
Applying through Dealers Portal UK verified dealers uses a soft credit check to provide eligibility scores and pre-approved APR rates with zero impact on your credit score.
