Hire Purchase vs Personal Contract Purchase vs Car subscription: Which one is right for me?

If you’re an Uber or PCO driver, choosing how to get your car is one of the biggest financial decisions you’ll make. Buying outright isn’t always realistic, so most drivers compare car finance or rent-to-buy subscription plans instead.

But while HP and PCP finance are common, they aren’t always designed for high-mileage, commercial driving. That’s where PCO-focused car subscription plans, like Splend’s Flexi Own, have become increasingly popular.

This guide explains the differences between Hire Purchase (HP), Personal Contract Purchase (PCP) and car subscription, so you can choose the option that actually suits rideshare driving.

What is Hire Purchase (HP) car finance?

Hire Purchase allows you to spread the cost of a car over time. You usually pay a deposit upfront, borrow the remaining amount, and repay it in fixed monthly instalments plus interest. Once the final payment is made, the car becomes yours.

Most HP agreements last between three and four years. During the contract, you’re the registered keeper of the vehicle, but the finance provider remains the legal owner until the balance is fully repaid.

What’s important for PCO drivers is what HP doesn’t include. While you’re paying off the car, you’re also responsible for:

• Insurance

• Servicing and maintenance

• Tyres, MOT and road tax

• Any unexpected repairs

For high-mileage driving, these extra costs can add up quickly.

How much does HP car finance cost?

Let’s use a realistic example. If you buy a £37,000 car with a £3,000 deposit on a four-year HP agreement at around 12% APR, you’ll borrow £34,000. That works out at roughly £900 per month for 48 months.

Most HP contracts don’t include a balloon payment, but some charge a small “option to purchase” fee at the end. More importantly, none of the running costs are included — so your real monthly spend is higher than the finance figure alone.

IMPORTANT: The HP car finance agreement doesn’t cover any car running costs. As the car’s registered keeper, you’re in charge of insurance, servicing and maintenance. 

Can HP be paid off early?

HP agreements can usually be settled early once you’ve repaid at least 50% of the total amount payable, including interest. At that point, you can clear the remaining balance and become the legal owner of the car.

For drivers whose income varies week to week, this limited flexibility can be a drawback.

What is PCP car finance?

Personal Contract Purchase works differently. Instead of paying off the full value of the car, you only repay the amount the lender expects the car to lose in value during the contract period.

This predicted future value is known as the Guaranteed Minimum Future Value (GMFV). Because of this structure, PCP usually comes with lower monthly payments than HP — but there are trade-offs that matter for Uber drivers.

PCP contracts usually include:

• A contract length of 24 to 48 months

• Mileage limits

• A large balloon payment if you want to keep the car

What happens at the end of a PCP contract?

When your PCP agreement ends, you have three options. You can pay the balloon payment and keep the car, return the car and walk away, or use any equity as a deposit on another PCP deal.

Using the same £37,000 car example, monthly payments might be around £650, but you’d still need to pay a final balloon payment of around £16,000 to own the vehicle. For many drivers, this final cost makes PCP less attractive for long-term use.

What is a car subscription or rent-to-buy plan?

A car subscription is a more flexible alternative to traditional finance. Instead of taking out a loan, you pay a weekly fee to drive the car, and ownership transfers to you at the end of the agreement.

With Splend’s Flexi Own plan, there’s no credit agreement and no balloon payment. The subscription typically runs for four or five years, and once the term is complete, the car is yours.

This structure is particularly well suited to rideshare driving, where predictable costs and flexibility matter more than short-term monthly savings.

What’s included with Splend’s Flexi Own?

Unlike HP or PCP, a car subscription bundles many of the costs that drivers usually have to manage separately. With Flexi Own, your weekly payment covers:

• PHV damage and loss cover

• Servicing, maintenance and MOT

• Road tax

• 24/7 roadside assistance

• Access to a replacement vehicle if needed

This all-in-one approach helps reduce downtime and avoid surprise expenses.

How much does a car subscription cost?

To put this into context, let’s look at a Volkswagen ID.3 on Flexi Own at £249 per week. To get started, you’d pay a one-off setup fee, a collection-day fee, and your first full week’s subscription. In this example, that totals £654.50 on collection day.

From week two onwards, you simply pay the weekly subscription. Any excess mileage charges contribute directly towards ownership, meaning the more you drive, the faster you work towards owning the car.

HP vs PCP vs car subscription: which suits Uber drivers best?

For most full-time Uber drivers, a car subscription tends to offer better long-term value. While HP and PCP can appear cheaper at first, they don’t account for the real costs of commercial driving — including insurance, maintenance, mileage limits and downtime.

Subscriptions are designed specifically for high-mileage use. There’s no balloon payment to plan for, no mileage anxiety, and no unexpected repair bills interrupting your earnings. At the end of the agreement, you own the car outright.

Estimated weekly savings

^{*This table uses estimates, please do your own research before making any decisions. Estimated savings at the end of the contract (4 years)} 

^{This table uses estimates, please do your own research before making any decisions.}

^{*Including the £16,000 balloon payment} 

^{**Servicing and maintenance are calculated for a yearly 52,000 mileage}

Why drivers choose Splend

Splend works exclusively with PCO drivers, which means every plan is built around earning potential, reliability and simplicity. Drivers get one clear weekly cost and support from a team that understands the realities of rideshare work.

It’s a practical way to own a car without the stress that often comes with traditional finance.

Ready to explore your options?

If you’re deciding between HP, PCP and car subscription, the best next step is to compare real numbers based on how you drive.

• Browse Splend’s available PCO vehicles

• Compare Flexi Own with traditional car finance

• Speak to a PCO specialist for tailored advice

Choosing the right car plan shouldn’t be complicated — and with the right setup, it doesn’t have to be.

About Splend

Splend makes car ownership easier, more affordable and more accessible for PCO drivers by building everything they need to earn more, pay less and stress less into one affordable weekly payment. It’s smooth driving, with no surprises and the lowest total ownership cost you’ll find – which is how car ownership for PCO drivers should be. For more information about Splend, browse our available vehicles here, make an appointment at one of our London Hubs or call us on 0333 016 4331.