Car Finance Calculator Ireland — Loan vs PCP vs Hire Purchase

What this calculator is for

This calculator compares three common ways to fund a car: a personal loan, Hire Purchase and a Personal Contract Plan. It is designed to show why the lowest monthly payment is not necessarily the lowest total cost.

Compare the same ownership outcome

Monthly payment alone is a poor way to compare a personal loan, Hire Purchase and PCP because the three structures can leave you in different positions at the end.

The calculator therefore separates PCP return from PCP keep. Returning the car means you do not pay the balloon/GMFV, but excess-mileage or condition charges may matter. Keeping the car means the balloon and any completion fee need to be included in the total cash paid.

In Advanced mode, the end-value estimate adds another useful question: if the car’s estimated market value is above the balloon, there may be positive equity; if it is below the balloon, paying the balloon may not be economically attractive simply because the monthly PCP payment looked low.

When comparing offers, use the actual APR, fees, term, balloon and mileage conditions from each quote. A lower monthly figure can be created simply by moving more of the cost to the final payment.

How to read the result

The three structures are shown explicitly as Personal car loan, Hire Purchase, and Personal Contract Plan (PCP) so that ownership timing and end-of-term obligations are not hidden by the monthly payment.

Compare monthly payment, total paid, ownership point and, for PCP, the final balloon/GMFV. In advanced mode, include fees, estimated end value, mileage limits and return charges.

Worked example

A PCP can show a much lower monthly payment than HP because a large part of the car’s price is deferred into the final balloon. The lower payment did not make that amount disappear; it moved it to the end of the agreement if you want to own the car.

Irish context

CCPC explains that under HP the finance company remains the legal owner until the agreement is completed. PCP is similar but leaves a significant balloon payment and usually includes mileage/condition terms. With a personal loan, you generally own the car from the start.

What can change the answer

APR, deposit, term, fees, balloon amount, trade-in value and likely resale value all matter. PCP economics are particularly sensitive to whether the car’s market value at the end exceeds or falls below the guaranteed/final amount.

Common mistakes to avoid

Do not compare monthly payments without equalising term and deposit. Do not assume PCP equity will exist at the end. And include excess mileage or condition charges when a return scenario is realistic.

Related Compound tools

Use the Loan Repayment Calculator for a simple loan, Fuel Cost Calculator and EV Charging Cost Calculator for running costs. Before choosing the car itself, EV vs Petrol vs Diesel in Ireland compares the purchase-price gap, tax, servicing, charging and depreciation alongside those running costs.

Frequently asked questions

Do I own the car on HP immediately?

No. The finance company is the legal owner until completion.

Do I own the car on PCP?

Only if you exercise the keep option and pay the final balloon and other required amounts.

Is a personal loan always cheaper?

No. Compare actual APR, fees and term.

Is GMFV guaranteed resale value?

It is a contractual final-value concept subject to agreement conditions, not a guarantee that every market-sale scenario produces equity.

Compare the exit, not just the entry

The most revealing part of a car-finance agreement can be what happens at the end.

With a personal loan, the remaining loan balance and the car’s market value are separate: you own the car and can sell it subject to clearing any outstanding borrowing. With HP, ownership transfers after the agreement is completed. With PCP, the final balloon means you normally choose among paying to keep the car, returning it subject to the agreement, or using any equity toward another vehicle.

That makes estimated end value important. If the car is worth materially more than the PCP balloon, there may be equity. If it is worth close to the balloon, there may be little. If return conditions are breached, mileage or condition charges can change the economics.

Also compare the total amount financed after deposit. A large deposit can make every monthly payment look attractive while hiding how much cash was committed up front.

For a fair comparison, keep car price and deposit constant first, compare equivalent terms, then test the actual dealer offers including fees and balloon. Only after that should convenience or ownership preference break the tie.

Compare four outcomes, not three monthly payments

A fair car-finance comparison should answer four different questions:

1. What cash is needed up front?
2. What is the monthly commitment?
3. What is the total cash paid if you keep the car?
4. What asset, debt or return obligation remains at the end?

That fourth question is where PCP can differ most from a personal loan or HP. PCP monthly payments are often lower because a substantial amount is deferred into the final balloon or Guaranteed Minimum Future Value. A lower monthly payment therefore does not automatically mean a lower total cost.

Ownership changes the comparison

With a personal loan, you normally own the car from purchase and owe money to the lender separately. Under HP, the finance company remains the legal owner until the agreement is completed. PCP is structurally similar to HP but leaves a larger amount outstanding at the end.

That difference matters if you want the freedom to sell the vehicle during the agreement. A personal-loan buyer owns the car, while HP/PCP customers are dealing with a vehicle legally owned by the finance provider until the relevant obligations are satisfied.

The PCP end point is the real decision

At the end of a PCP, the practical question is usually whether to:

• pay the balloon and keep the car,
• return the car subject to the contract,
• or use available equity toward another vehicle.

The calculator’s PCP keep total, PCP return total and PCP equity outputs are intended to make those paths visible.

Mileage limits and condition standards also matter. A PCP that looks cheapest on scheduled payments can become more expensive if excess-mileage or condition charges apply on return. Advanced mode lets you include those assumptions rather than pretending every return is frictionless.

Compare dealer offers on a like-for-like basis

Keep the car price, deposit and term constant first. Then enter the real APR/rate, fees and balloon for each offer. If one dealer requires a much larger deposit, do not compare only the monthly repayments.

Also compare the finance cost with the cash-price alternative. A dealer contribution or discount tied to finance can alter the economics, but it should be entered transparently rather than treated as “free money”.

The CCPC recommends comparing total cost and understanding the contract terms. See Paying for your car, Hire Purchase and Personal Contract Plans.

Use the Lifetime Cost Calculator when you want to include fuel, maintenance, insurance and depreciation rather than finance alone.

Method and limitations

The tool amortises the loan and HP balances and uses a balloon-payment formula for PCP. Advanced mode adds the entered fees, mileage/condition charges and estimated end value. It does not model tax, insurance, depreciation curves or every contract clause.

Useful sources

• CCPC — Personal Contract Plan
• CCPC — Hire Purchase