PCP and HP are both great alternatives to buying a car outright, but there are a few differences worth noting. PCP offers you a choice of three settlement options at the end of your agreement. You can either; return the car to the lender, Part-exchange it, or pay a Balloon Payment to own the car yourself. With HP, there is no option to return the car or part-exchange it. Instead, the cost of owning the vehicle is evenly spread across your monthly repayments, and at the end of the agreement, the car is yours.