Check the lender's actual representative APR, this varies by credit profile.
Use a real quote's GFV if you have one. "Estimate for me" gives a rough figure using our depreciation curve, a real lender's GFV will differ.
Fill in the form and click calculate to see the monthly payment, total interest, and total cost.
How this is actually calculated
Hire Purchase (HP) uses the standard reducing-balance loan formula, the same one used for a personal loan or mortgage: you pay down the full amount financed (price minus deposit) plus interest, in equal instalments, and own the car outright at the end with nothing further to pay.
PCP uses the same underlying interest maths, but a chunk of the price (the Guaranteed Future Value, or GFV) is deferred to an optional final payment rather than spread across the monthly instalments. That's why the monthly payment is lower, you're financing the car's depreciation over the term plus interest, not the full price. At the end, you can pay the GFV to own the car, hand it back with nothing more to pay (subject to condition and mileage limits), or use any equity toward a new deal.
The GFV "estimate for me" button reuses the same depreciation curve as our Car Value Estimate tool, projecting the car's value forward by the loan term. A real lender's GFV is set by their own residual value forecasts and is very often different, sometimes deliberately generous to make the deal look better, so always use the actual figure from a real quote where you have one.
Frequently asked questions
What's the difference between PCP and HP car finance?
Hire Purchase (HP) spreads the full car price across the term, so you own it outright at the end with no further payment. PCP defers a chunk of the price to an optional final balloon payment (the Guaranteed Future Value), which lowers the monthly payment, but you only own the car if you pay that balloon at the end; otherwise you hand it back or trade it in.
Is this a real credit quote?
No. This calculator illustrates how PCP and HP payments are actually worked out using the same maths lenders use, but it is not a credit offer or quote. DS Auto Labs is not a lender or credit broker. A real quote depends on your credit profile and the lender's own terms.