Feature	Hire Purchase (HP)	Personal Contract Purchase (PCP)
Do I own the car at the end of my agreement?	✓	✗ (Optional with balloon payment)
Do I need to pay deposit?	Optional	Optional
Lower monthly payments	✗	✓
No large final payment	✓	✗ (Optional with balloon payment)
Mileage limits apply	✗	✓
More flexible options at end of term	✗	✓
No balloon payment	✓	✗
Easier to settle early	✓	✗ (optional balloon payment still applies)
Total cost	Can be higher because you are paying to own the car)	This depends, it may be cheaper if you hand the car back, but can be more expensive if you decide to keep the car.
Best for long-term ownership	✓	✗
Best for changing cars frequently	✗	✓

Feature	Hire Purchase (HP)	Personal Contract Purchase (PCP)
Do I own the car at the end of my agreement?	✓	✗ (Optional with balloon payment)
Do I need to pay deposit?	Optional	Optional
Lower monthly payments	✗	✓
No large final payment	✓	✗ (Optional with balloon payment)
Mileage limits apply	✗	✓
More flexible options at end of term	✗	✓
No balloon payment	✓	✗
Easier to settle early	✓	✗ (optional balloon payment still applies)
Total cost	Can be higher because you are paying to own the car)	This depends, it may be cheaper if you hand the car back, but can be more expensive if you decide to keep the car.
Best for long-term ownership	✓	✗
Best for changing cars frequently	✗	✓