Can you change from PCP to HP?

Roman Danaev

17 April 2023

Yes, it is possible to change from a Personal Contract Purchase (PCP) to a Hire Purchase (HP) agreement. However, it will depend on the specific terms of your current PCP agreement and the lender's policies. It may be possible to switch from a PCP to an HP agreement if you have already made a significant amount of payments on the PCP agreement, and if the vehicle is in good condition. However, it may require paying off any outstanding balance on the PCP agreement before entering into the HP agreement.

The decision to move from a PCP to an HP contract may have financial implications, so it is recommended to seek professional financial advice prior to doing so. A car finance broker like Carplus can help you evaluate your options and guide you through the process of switching from PCP to HP, if it is possible and if it is the best option for you.

Is it better to go HP than PCP?

The decision of whether it is better to choose an HP or a PCP agreement will depend on your individual financial situation and preferences. Both types of agreements have their own advantages and disadvantages.

A Hire Purchase agreement typically requires a larger initial deposit, but the interest rates are often lower than those on a PCP agreement. Additionally, once the final payment is made on an HP agreement, the vehicle belongs to the customer. On the other hand, PCP agreements typically have lower monthly payments, but the customer does not own the vehicle until the final payment is made, and also it may come with mileage restrictions and other fees.

It is important to carefully review the terms and conditions of both types of agreements, and your own budget and long-term plans, before making a decision. It is always advisable to seek professional financial advice.

Contact Carplus for advice!

If you have any questions regarding the possibility of switching from a Personal Contract Purchase (PCP) to a Hire Purchase (HP) agreement, it is important to speak with a reliable and experienced car finance broker - Carplus. We can provide expert advice and guidance on the different financing options available and help you make an informed decision based on your individual financial situation and needs.

It is always recommended to research and compare different options and providers before making a final decision. We are known for our professional and comprehensive service and can assist you in finding the best finance option to fit your specific needs. We can also help you navigate the process of transferring from a PCP to an HP agreement if that is the best option for you. If you are considering this type of change, contact Carplus, and we will be happy to assist you.

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