Changing your car soon? Not sure whether to buy NEW, second hand or go down the HP or PCP route?
HP vs PCP - What's the difference?
Hire Purchase (HP) allows you to spread the full cost of a vehicle across monthly repayments after paying an initial deposit. Once all payments are made, the car is yours. Personal Contract Purchase (PCP) is similar but works more like a long-term lease. You pay lower monthly instalments and then choose what to do at the end of the agreement.
Personal Contract Purchase (PCP)
Advantages
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Lower monthly payments compared to HP for similar vehicles
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Smaller upfront deposit
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Flexible end-of-term options (return, trade in, or buy)
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Fixed monthly payments help with budgeting
Disadvantages
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A large final payment is required if you want to own the car
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Excess mileage charges apply if you exceed the agreed limit
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The vehicle must be returned in good condition or repair charges may apply
Hire Purchase (HP)
Advantages
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You spread the full cost of the car over monthly repayments
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Low deposit options available
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No mileage limits or excess mileage charges
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You own the car outright once the agreement ends
Disadvantages
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Monthly repayments are usually higher than PCP
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Ownership only transfers once the full balance is paid
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Missed payments could result in repossession
PCP Deals vs Harp & Crown Credit Union Loans
Below are examples comparing PCP finance from a local dealership with Harp & Crown Credit Union’s £5K+ (7.9% APR) and £20K+ (6.9% APR) loans.
Across a 48-month term, our examples show total loan costs that are 12.3%–13.9% lower than PCP finance for the same vehicles.
Example: £20K+ Vehicle Value
| PCP - Charles Hurst Used Direct | Harp & Crown Credit Union Loan | |
| Vehicle | Audi Q3 Diesel Estate | Audi Q3 Diesel Estate |
| Cost | £21,499 | £21,499 |
| Term | 48 months | 48 months |
| Interest Rate | 12.9% APR representative / 9.2% fixed | 6.9% APR |
| Monthly Payments | £347.72 | £513.82 |
| Total Payable | £28,230.19 | £24,663.53 |
Example: £10K+ Vehicle Value
| PCP - Charles Hurst Used Direct | Harp & Crown Credit Union Loan | |
| Vehicle | Ford Fiesta Hatchback | Ford Fiesta Hatchback |
| Cost | £11,499 | £11.499 |
| Term | 48 months | 48 months |
| Interest Rate | 12.9% APR representative / 8.67% fixed | 7.9% APR |
| Monthly Payments | £201.58 | £280.18 |
| Total Payable | £14,889.11 | £13,448.87 |
Why Choose a Harp & Crown Car Loan?
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Fixed interest rates for the full loan term.
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Interest is charged only on the reducing balance.
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Flexible repayment terms up to 60 months.
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No large lump sum at the end of the agreement.
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No hidden fees and no early repayment penalties.
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Members can borrow up to 5× their savings balance (excluding Loyal Saver Loan).
Email creditunion@harpandcrown.co.uk or phone 028 9068 5198 between 8am - 4.30pm Monday to Friday.
“Save regularly and borrow only what you need.”
The Harp and Crown Credit Union provides safe, ethical and flexible finances to the Police and wider Police family in Northern Ireland.
