Hire Purchase Calculator

HP payments with deposit — you own the car after the final payment, no big balloon.

HP rarely has one — usually just a small 'option to purchase' fee

Result

Amount financed£13,500.00
Monthly payment£348.26
Total cost£18,216.45

How it's calculated

  1. 1

    Amount financed = £15,000.00 − £1,500.00 deposit = £13,500.00

  2. 2

    Monthly rate r = 10.9% ÷ 12 = 0.9083%

  3. 3

    Amortised payment = £13,500.00 × r × (1+r)^48 ÷ ((1+r)^48 − 1) = £348.26/mo

  4. 4

    Monthly payment = £348.26 · Total cost = £18,216.45

Hire Purchase Calculator — FAQs

HP vs PCP — what's the difference?

HP spreads the full price minus deposit over the term — higher monthly payments but you own the car outright at the end. PCP defers a balloon, so monthly payments are lower but you must pay it (or hand the car back) to own it.

Do I own the car on HP?

Not until the last payment clears — the finance company owns it until then. A small 'option to purchase' fee (~£10) usually applies at the end.

Is HP cheaper than PCP?

Monthly payments are higher on HP, but total interest is often lower because there's no balloon accruing interest for the whole term.

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