Evans Ofori · Interactive applications

PCP vs HP vs Rental vs Cash

Side-by-side vehicle acquisition scenarios, with transparent finance, mileage, insurance and residual-value assumptions.

Available now

LONDON PRIVATE HIRE · VEHICLE FINANCES

Compare four ways to get your PHV vehicle

Enter your own quotations and estimates to compare PCP, Hire Purchase, weekly rental and paying cash over the same period. Numbers are illustrative, not lender quotes or financial advice.

Vehicle & comparison period

Vehicle purchase price (£) Comparison and finance term (months) Annual miles Estimated resale value at end (£)

PCP finance — return the vehicle at term end

PCP deposit (£) PCP APR (%) Optional final payment / balloon (£) PCP setup/administration fees (£) PCP annual mileage allowance Excess-mileage charge (pence/mile)

PCP result assumes you hand the car back, make all monthly payments and satisfy return conditions. Excess-mileage charges are estimated; damage, return and other contract fees are not modelled.

Hire Purchase (HP)

HP deposit (£) HP APR (%) HP setup/administration fees (£)

HP assumes equal monthly repayments, full ownership at the end and a sale at the entered residual value.

Rental & running costs

Weekly rental cost (£) Annual PHV insurance (£) Annual maintenance/tyres (£) Rental includes insurance Rental includes maintenance

Rental is calculated using 52 weeks per year. All four scenarios exclude energy/fuel, licensing, tax, parking, congestion/road charges and other expenses common to each option.

YOUR SCENARIO

Estimated cost comparison

How to read this comparison

Estimated net cost is the cash cost over the selected term. For HP and cash, we subtract the estimated sale proceeds. For PCP, we assume you return the vehicle, so the balloon is not paid and you retain no vehicle. We use a standard monthly amortisation model with the entered APR divided by 12 as an approximation. Actual finance quotations, APR treatment, fees and repayment schedules may differ. Finance fees are treated as separate cash costs.

The PCP full-agreement interest illustration assumes the optional balloon is eventually paid, although this result models handing the vehicle back. It is shown for context, not as a further amount to add to the hand-back cost. The balloon itself is excluded from the hand-back total. Check the written PCP quote: early termination, damage, mileage adjustments, fees and vehicle-return conditions can change what you owe.

Rental inclusions vary by supplier. Obtain written quotations for the actual insurance, mileage, servicing, deposit, contract and return terms before making a decision. Cars, loan rates and PCP mileage allowances can vary significantly, especially for private-hire use. A PCP mileage limit or balloon value may not be independently negotiable at the same quoted APR; changing one may alter the others.

Independent illustrative planning tool by Evans Ofori. Not affiliated with TfL, any lender or rental provider. This is not personal financial advice, a credit offer or a guarantee of actual costs. Check whether your proposed vehicle and finance/rental contract permit licensed private-hire use.

A practical guide to PHV vehicle finance

Choosing how to get a vehicle is one of the biggest ongoing financial decisions for a London private-hire driver. This guide explains the four options in the calculator, the assumptions behind its estimates and the questions to ask before committing to an agreement.

The calculator is a planning tool, not a lender quotation or personalised financial recommendation. Enter figures from real offers where possible, and check that your chosen vehicle and contract allow the private-hire use you intend.

What are the four options?

Personal Contract Purchase (PCP)

PCP commonly involves an initial deposit, monthly payments and an optional final payment, often called a balloon or guaranteed future value. The final payment is normally required if you want to keep the vehicle. Returning it may be subject to mileage limits, condition rules and other contract terms. Check whether the finance provider allows private-hire use, because not all consumer PCP agreements do.

Hire Purchase (HP)

HP typically spreads the financed purchase price across repayments. Once contractual payments and any final option-to-purchase charge are satisfied, ownership can transfer under the agreement. Unlike a typical PCP illustration, there is not usually a large optional balloon in a standard HP agreement. Check lender fees, early-settlement terms and private-hire eligibility.

Weekly vehicle rental

Renting can reduce the need for a large upfront payment, but costs accumulate over time. Check exactly what the weekly charge includes: insurance, maintenance, tyres, breakdown cover, replacement vehicle, mileage limits, deposits and excess charges. Some offers are more flexible than others, and availability or return conditions can affect the real cost.

Cash purchase

Buying outright avoids lender interest. You still face depreciation, insurance, servicing, repairs and the cost of tying up savings. The calculator subtracts an assumed resale value when comparing the net ownership cost. Your actual resale value could be much lower or higher.

How to read the comparison

The calculator estimates costs over the same selected comparison period. It can include finance payments, deposit, entered fees, insurance, maintenance and estimated resale proceeds or PCP mileage charges, depending on the option. Its outputs are illustrations driven by the assumptions you enter, not guaranteed outcomes.

Monthly payment is not total cost. A lower instalment can come with a larger final payment, higher cumulative interest or contractual restrictions.
APR matters. PCP and HP have separate rate inputs because offers can differ. APR is not the same as a simple flat interest rate.
PCP balloon changes the trade-off. Increasing the balloon can reduce monthly repayments, but raises the amount needed to buy the car at the end. Hand-back and keep-the-car are different decisions.
Mileage matters for PHV work. A high annual mileage can materially change PCP charges and the realistic resale value.
Resale values are estimates. Vehicle age, condition, mileage, market demand and regulation can all affect the amount you could recover.

Costs you should check outside the calculator

Before making a decision, consider licensing and vehicle eligibility, tyres, unplanned repairs, breakdowns, downtime, charging or fuel, road charges, parking, cleaning, tax treatment, insurance excesses and any contract-specific administration, damage or early-exit charges. Not every cost is modelled in the current version, and costs that apply equally to all options may be omitted from the comparison.

Questions to ask before signing

Does the agreement expressly permit London private-hire or ride-hailing work?
What are the actual APR, total amount payable and any setup or end-of-term fees?
What is the annual mileage allowance and the excess-mileage charge?
Who pays for insurance, tyres, servicing, repairs and vehicle downtime?
What happens if I need to end the arrangement early?
If I plan to keep the vehicle, how will I fund the final payment?
What is a realistic resale estimate for my intended annual mileage?

Frequently asked questions

Is PCP cheaper than HP for private-hire drivers?

Not automatically. PCP may have lower monthly payments because more of the cost is deferred, while HP may lead to outright ownership under its terms. Compare total cost, permitted mileage, private-hire eligibility and what happens at the end of each agreement.

Why does the PCP hand-back estimate rise with mileage?

The model estimates excess mileage when anticipated mileage exceeds the entered contract allowance. Real lenders may set different charges or offer different pricing for a higher allowance. Vehicle condition charges and other contractual costs may also apply.

Does the lowest figure mean the best option?

No. Affordability, available savings, cash-flow flexibility, approval criteria, ownership goals, downtime risk and contract restrictions can outweigh a small difference in estimated total cost.

Can I use this calculator for an Uber or Bolt vehicle?

You can enter illustrative costs for your proposed work, but you must independently confirm the vehicle meets the relevant licensing and operator requirements and that the finance or rental agreement permits the intended use.

Explore the topic further

We will link to deeper Evans Ofori articles here once they are published, including guides to PCP mileage limits for London PHV work, renting versus buying a PHV vehicle and understanding vehicle finance APR and total cost. These are planned article topics, not live links.

Independent information: EvansOfori.com shares practical explanations and illustrative calculations. It is not affiliated with TfL or a finance provider, and this page does not constitute regulated financial advice. For current licensing rules, consult Transport for London. Always check provider agreements and consider qualified independent advice for significant financial commitments.

Information and results are estimates only. They are not official TfL or HMRC advice or a guarantee of earnings, eligibility or vehicle costs. Always verify current rules and your own circumstances.