At Motorfinity, we understand that our NHS staff need a reliable car to get to shifts on time. Whether that's regular hospital rotations, community visits, or on-call emergencies, we're here to help you access the best deal on your next vehicle and find the best way to finance it.
Let's break down the two main finance options and see which might work best for your NHS career and lifestyle needs.
The Quick Comparison
| Finance Feature | Hire Purchase (HP) | Personal Contract Purchase (PCP) |
|---|---|---|
| Ownership | You own the car after final payment | Optional ownership via balloon payment |
| Monthly cost | Higher | Lower |
| Mileage limits | None | Yes (with excess charges) |
| Best for NHS rotations | ✓✓✓ (no mileage limits) | ✓ (if flexibility valued) |
| Suited to Foundation doctors | ✓ (if financially possible) | ✓✓✓ (lower payments) |
| Ideal for Consultants | ✓✓✓ (building assets) | ✓ (if preferring newer models) |
Table of Contents
What is Hire Purchase
HP is straightforward. You just have to pay a deposit, followed by fixed monthly payments until you own the car outright.
How it works
- You typically pay a 10% deposit.
- Monthly payments are higher than PCP.
- Each payment builds your ownership stake.
- No mileage restrictions to worry about.
- After the final payment, you own the car.
Real example
A customer purchasing a Ford Puma worth £25,000 on HP would pay a £2,500 deposit (10%), followed by fixed monthly payments of £554 over 48 months at 8.2% APR. With no mileage restrictions, building ownership with each payment, you fully own the car after making the final payment, paying a total of £29,092 including £4,092 in interest.
What is Personal Contract Purchase (PCP)?
PCP is more flexible:
You pay a deposit and lower monthly payments covering only the vehicle's projected depreciation.
How it works:
- You pay a deposit (typically 10%).
- Monthly payments are lower than HP.
- At the end of the contract, you have three options.
- Pay a final "balloon payment" to own the car.
- Hand the car back with nothing more to pay.
- Trade in for a new car on a new PCP deal.
- Mileage limits apply (typically 8,000-10,000 miles per year).
- The car must be maintained to a good standard.
Real Example
A Ford Puma(£25,000) PCP deal requires a £2,500 deposit with £399 monthly payments over 48 months at 8.2% APR, including a 10,000-mile annual limit. After the term, customers can pay the £8,750 balloon payment to keep the car, or return it (if in good condition), or start a new PCP agreement, with total cost reaching £30,402 if purchasing outright.
Which Option Suits Different NHS Roles?
For Foundation Doctors (F1-F2)
PCP might be better if:
- You're moving between different placements.
- You want lower monthly payments (helpful with student loan repayments).
- You're uncertain about your future specialty location.
- You prefer the flexibility to change vehicles when your career path clarifies.
We recently spoke with one of our customers, a junior doctor, about their experience purchasing a car through PCP financing:
HP might be better if:
- You've secured a Foundation Programme in one location for two years.
- You can manage slightly higher monthly payments.
- You want to build equity in an asset early in your career.
For Specialty Trainees (CT/ST1-8)
HP might be better if:
- You do frequent long commutes between different hospital placements.
- You exceed average mileage with regular rotations.
- You know you'll be in the same training region for several years.
We recently reached out to a medical registrar who purchased their vehicle using our HP financing option to learn about their experience with the process:
PCP might be better if:
- You're considering taking time out for research or OOPE.
- You anticipate possible location changes.
- Your specialty has predictable working patterns with manageable mileage.
For Consultants and Senior Staff
HP typically works better:
- You're settled in a permanent position.
- You prefer outright ownership of a higher-value vehicle.
- You're established in your career and can manage higher payments.
- Financial stability is important to you.
PCP might be preferable if:
- You enjoy regularly updating to newer models.
- You have predictable working patterns with consistent mileage.
- You value having access to the latest technology and safety features.
For GPs and Community-Based Staff
HP advantages:
- No mileage restrictions for rural or widespread community visits.
- Build equity even during frequent community travel.
- Ownership suits staff with unpredictable working areas.
- No concerns about wear and tear from frequently transporting equipment.
PCP advantages:
- Lower monthly commitments if you work in a defined geographic area.
- More easily adaptable if you're a locum or work across multiple practices.
- Option to regularly upgrade to newer models.
How NHS Working Patterns Affect Your Choice
On-Call and Shift Patterns
HP works well when:
- You need reliability for unexpected on-call commitments.
- You require unrestricted mileage for unpredictable hospital callouts.
- You want to build equity despite erratic working hours.
PCP works well when:
- You want lower monthly outgoings during training.
- Your on-call commitments are at a single site.
- You prefer a newer car with comprehensive warranty coverage.
| Working Pattern | HP Suitability | PCP Suitability |
|---|---|---|
| Frequent On-Call Duties | Excellent | Good |
| Multiple Site Rotations | Excellent | Fair |
| Single Site Work | Good | Excellent |
| Regular Hours | Good | Excellent |
Common NHS Scenarios
Practical Tips for NHS Staff
- Calculate your total rotation mileage - Be honest about how far you'll drive between placements.
- Consider your career timeline - How long will you stay in your current role/location?
- Visit Motorfinity's exclusive discount website - Motorfinity offers exclusive NHS discounts averaging a saving of £7,000.
- Check early termination clauses - Essential if you might need to relocate for career progression.
- Think about parking at NHS facilities - Newer, smaller cars may be easier to park in limited hospital spaces.
Making Your Decision
Final Thoughts
Both PCP and HP have their place for NHS staff, depending on your career stage, working patterns, and financial priorities.
We understand that your NHS career is unique, and the right finance option should support both your professional needs and personal circumstances. We recommend that you consider how factors like placement changes, on-call commitments, and long-term career plans will influence your vehicle requirements.
To learn more about PCP and HP, check our detailed guide exploring the differences between the two.
Motorfinity
At Motorfinity, we pride ourselves on offering exclusive discount across all makes and models. Whether you're looking for efficiency, style, or cutting-edge technology, our selection is designed to meet every need.
You can choose from Personal Contract Purchase (PCP), Hire Purchase (HP), and leasing deals. Each option provides flexibility and benefits tailored to different driving habits and budgetary needs.
Are you eligible?
Our nation's Armed Forces, Veterans, Emergency Services, NHS, Police and Prison Services, the Education and Social Care sectors and more form our eligible audience.
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