PCP vs HP vs Lease vs Cash

Same car, four ways to pay. Lowest cash outlay and lowest true cost are often different options — this compares both on the same basis.

Comparison

Same car, same basis

Car price

Deposit / initial (finance)

APR

Agreement duration

Number of regular paymentsoften term − 1

pmts

PCP balloon (GFV)

Lease monthly rental

Assumed depreciation

%/yr

Initial rental

Multiple of monthly rental= £2,871

Option

Cash outlay

True cost

/mo true

PCP — return at end

£20,814

£434

PCP — pay balloon & keep

£30,314

£17,786

£371

£28,640

£16,112

£336

Lease (9+47)

£17,864

£372

Cash purchaseLowest true cost

£24,000

£11,472

£239

Estimates only, based on the methodology stated above — actual lender or dealer figures may differ. RealCarCost is not a broker, lender or financial adviser, and nothing here is financial advice or a personal recommendation.

Last reviewed: 30 August 2026. Figures and methodology are reviewed as UK rates and rules change.