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More complex are personal contract purchase (PCP) schemes, which are a marriage of HP and leasing. You pay a lower deposit and lower monthly outgoings and then, at the term's end, you can own the vehicle by paying a final "balloon" payment, roll on to a better car with the same dealer or finance provider, or simply walk away. It's cheaper than HP but typically dearer than leasing. Dealers encourage the take-up of PCPs as, in practice, drivers stay and upgrade. But from the driver's point of view, the value of PCP is hard to assess because of the number of factors at play.
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