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Personal Contract Purchase
Monthly Repayments: £162
Term: 48 Months
Optional Lump Sum: £4,652
Total Repayments (including optional lump sum): £12,266
Hire Purchase
Monthly Repayments: £234
Term: 48 Months
Optional Lump Sum: N/A
Total Repayments: £11,232
Comparison
Monthly Payments
Total Repayments
Understanding Car Finance Options
Personal Contract Purchase (PCP): PCP offers lower monthly payments. You pay a deposit, followed by monthly installments over the term. At the end, you can pay an optional lump sum (Guaranteed Future Value, or GFV) to own the car or return it to the dealer.
Hire Purchase (HP): HP is a simple option where you pay a deposit and monthly payments until the car is fully paid off, at which point you own it outright. There’s no final lump sum.
For PCP, the "Total Repayments" includes the optional lump sum (GFV) if you choose to keep the car. If you return the car, the total paid is just the monthly repayments.
Note: This calculator uses the same APR for both PCP and HP for simplicity. In practice, APRs may differ between the two options.
Key Terms:
- Monthly Repayments: The amount paid each month.
- Term: The duration of the finance agreement in months.
- APR: Annual Percentage Rate, the interest rate applied.
- Optional Lump Sum (GFV): In PCP, the final payment to own the car.
- Total Repayments: The total paid over the term, including the GFV for PCP if applicable.
Disclaimer:
The information provided by this calculator is computer-generated and intended for general guidance only. The results are approximate, based on certain assumptions, and should not be considered a substitute for professional financial advice.
Users are strongly advised to obtain a formal quote directly from their lender and independently verify all calculations before making any financial decisions. While we strive for accuracy, we do not accept liability for any errors, omissions, or reliance on the generated results.
