PCP (Personal Contract Purchase) offers lower monthly payments with an optional final payment to own the car, while HP (Hire Purchase) spreads the full purchase price across equal monthly payments. PCP provides flexibility to return, exchange, or purchase at the end, while HP guarantees ownership once payments are complete. Learn more about [the top 5 things you need to be aware of before taking out a PCP car finance deal](https://choosemycar.com/resources/car-finance/the-top-5-things-you-need-to-be-aware-of-before-taking-out-a-pcp-car-finance-deal).