PCH, PCP or HP for your electric car? And when buying outright wins.
Private driver, sole trader or fleet — the right finance option avoids nasty surprises and keeps the monthly cost down. EVTrader explains the differences and compares the market, brand-neutral.
In short: PCH, PCP or HP
PCH: fixed monthly payments, no ownership, usually the lowest cost — the go-to for drivers who want a new car every few years. PCP: lower deposit-based payments with an optional balloon payment to own the car later. HP: you own the car from day one once the final instalment is paid, no mileage limit, but you carry the resale risk. Updated 2026-07-06.
The three options at a glance
| PCH | PCP | HP | |
|---|---|---|---|
| Ownership | Never — you hand it back | Optional, via balloon payment | Automatic at the end |
| Monthly payment | Fixed, usually lowest | Fixed, moderate | Fixed, highest |
| Maintenance included | Often available as an add-on | Rarely included | Not included |
| Mileage limit | Contractual | Contractual | None |
| Residual-value risk | With the lender/lessor | With the lender, unless you buy* | With you |
| Best for | Drivers who always want a newer car | Flexibility to decide later | Wanting to own outright |
* On PCP, the residual-value risk sits with the finance company unless and until you choose to pay the balloon payment and take ownership.
Which option for which situation?
PCH — the simple lease
Fixed monthly payments, no ownership, no resale worries, a newer car every few years. The lowest-cost option for most drivers.
Learn more →PCP — keep your options open
Lower monthly payments with the choice to own the car later if it's held its value well. The most popular route for private buyers.
Learn more →HP or cash — outright ownership
You drive a lot or keep cars for years: no mileage limit, sell whenever you like. You carry the depreciation, but everything is yours.
Learn more →The monthly payment comes down to residual value
On both PCH and PCP, the monthly payment = (vehicle price − predicted residual value) ÷ term, plus interest and fees. Two quotes on the same model can differ by tens of pounds a month simply because lenders estimate the residual value differently.
That's exactly where EVTrader adds value: we compare offers from multiple lenders using real residual-value data, and negotiate the monthly payment on your behalf.
Understand residual value →Which option suits your situation?
Tell us your mileage, budget and whether you're a private driver or a business: get a personalised PCH/PCP/HP comparison. Free, over WhatsApp.
Frequently asked questions: PCH, PCP and HP
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