PCP, HP or cash: which suits you?

The three common ways to pay for a car, and who each one actually works for.

Hire Purchase spreads the full price and you own the car at the end. PCP defers a large chunk of the value to a final payment, so monthly costs look lower but you own nothing unless you settle it. Paying cash costs nothing in interest but ties up money you may want elsewhere. None is universally right — it depends on how long you keep cars and how much you drive.