PCP or HP - help

Stateofart

HP is typically more cost effective (lower interest rate, the car ends up being yours). 

PCP is usually for new cars - you are renting the car basically.

Moley27272

interest rates are higher for HP. 13.9 percent for HP compared with 9.9 percent for PHP 

photome

Moley27272 said:

interest rates are higher for HP. 13.9 percent for HP compared with 9.9 percent for PHP 

What is the total cost though?

facade

photome said:

Moley27272 said:

interest rates are higher for HP. 13.9 percent for HP compared with 9.9 percent for PHP 

What is the total cost though?

Which is what I posted.

Just calculate how much money you pay out in total for each case. If the car is going back then don't include the GFV.

Subtract the GFV from the HP total as it will be close to the trade in value (PCP lenders have a pretty good idea what the car will be worth unless there are unforeseen circumstances, like Yet Another War, Yet Another Pandemic, or a truly massive increase in VED on EVs.)

happyc84

perhaps a bank loan would give a lower APR rather than HP from the dealer.