PCP, hire purchase, lease, or cash — what each one costs an owner-driver over three years.
No monthly payment or interest, and no mileage limit. Ties up capital you might want for insurance, tools, or a quiet month.
Fixed monthly payments, you own the van once the final payment clears. Straightforward, but total cost is higher than cash.
Lower monthly payments, but a large optional final payment if you want to keep the van. Mileage limits can catch high-mileage rounds out.
Fixed monthly cost, often including maintenance. You never own the van, and early termination fees can be steep if work dries up.
Illustrative figures for a mid-size panel van around £24,000 list price. Real quotes depend on your credit profile, deposit, and mileage.
| Route | Deposit | Monthly | 3-yr total | End of term |
|---|---|---|---|---|
| Cash | £24,000 | £0 | £24,000 | You own it |
| Hire purchase | £2,400 | £620 | £24,720 | You own it |
| PCP | £2,400 | £410 | £17,160 + balloon | Pay balloon, hand back, or refinance |
| Lease | £1,800 | £450 | £18,000 | Hand back, no ownership |
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