Finance
HP vs PCP for an electric car
HP costs more each month and you own the car. PCP costs less each month and you face a balloon and a mileage cap.
8 minute read · Updated 2026-08-14
Rent an EV
Finance
Sourced from GOV.UK, HMRC or DVLA — not a forum screenshot.
The only difference that matters
Hire purchase amortises the whole car. Personal contract purchase amortises the drop in value and leaves a guaranteed future value as an optional final payment.
On an EV that residual is a guess about batteries and new model years. PCP protects you from that guess if you hand the car back clean and on mileage. HP leaves the guess with you.
Questions
Which is cheaper overall?
HP if you keep the car past the term. PCP if you change cars every three or four years and stay inside the miles.