Lease vs PCP vs HP vs buying outright
Put your own figures for each route side by side over the same period. See what you pay in total, what you own at the end, and the net cost once the car's estimated resale value is counted.
The car and the period
Typically 24, 36 or 48.
For context. Lease and PCP carry mileage limits.
About £13,500. An estimate, not a guarantee. Depreciation varies a lot by car.
Optional. What the cash might otherwise have earned.
Lease
Most agreements take it up front, then one fewer monthly payment.
PCP
Only paid if you keep the car.
Shown for reference only. Monthly payments are not worked out from it.
Hire purchase (HP)
Shown for reference only.
Comparison over 36 months
| Route | Total cash out | Net cost | What you have at the end |
|---|---|---|---|
| Lease | £13,200 | £13,200 | Nothing |
| PCP, hand back | £14,520 | £14,520 | Nothing |
| PCP, keep | £27,520 | £14,020 | The car (est. worth £13,500) |
| HP | £24,600 | £11,100 | The car (est. worth £13,500) |
| Buy outright | £30,000 | £16,500 | The car (est. worth £13,500) |
| Lease | £13,200 |
|---|---|
| PCP, hand back | £14,520 |
| PCP, keep | £27,520 |
| HP | £24,600 |
| Buy outright | £30,000 |
| Lease | £13,200 |
|---|---|
| PCP, hand back | £14,520 |
| PCP, keep | £14,020 |
| HP | £11,100 |
| Buy outright | £16,500 |
Which might suit you
- Lowest monthly payment: Lease at £300.
- Lowest total cash out: Lease at £13,200.
- Lowest net cost once resale value is counted: HP at £11,100.
- Flexibility and no resale risk: a lease or a PCP you hand back leave you owning nothing, so there is no value risk, but mileage and condition terms apply.
- Owning the car: HP, PCP (if you pay the final payment) and buying outright, where the real cost depends on what the car is worth when you sell.
General guidance based on your figures, not financial advice. Totals only: interest is not calculated from the APR.
Car Lease Deals UK, carleasedealsuk.co.uk. All figures are the user's own assumptions. Printed . An estimate, not advice.
Frequently asked questions
Is leasing cheaper than buying?
It depends. Leasing usually has the lowest monthly cost and no resale risk, but you never own the car. Buying costs more up front but you keep whatever the car is worth at the end. This tool shows both so you can judge.
What is the difference between PCP and HP?
With hire purchase you pay the whole car off and own it at the end. With PCP you defer a large final payment, so monthly costs are lower, and at the end you can pay it to keep the car, hand the car back, or part exchange.
What is a balloon payment or GMFV?
It is the optional final payment on a PCP, set at the start as the car's guaranteed minimum future value. Pay it to own the car, or hand the car back and walk away.
Why does buying outright show a cost if I own the car?
Because the car loses value. Your real cost is what you spent minus what the car is worth when you sell it, plus any interest you gave up by tying cash in the car.
Does leasing include anything buying does not?
A lease normally includes road tax and the manufacturer warranty for the term, and you avoid resale risk. It does not include insurance unless stated, and mileage limits and end-of-lease condition charges apply.