With PCP finance, you pay an initial deposit, followed by monthly instalments, but a large portion of the loan is deferred until the end of the agreement. You can pay that final sum to own the car, hand it back or start another agreement.
With HP, you pay a deposit up front (normally 50% minimum), and then pay off the rest of the balance – plus the interest - in equal monthly instalments. You’ll pay an ‘option to purchase’ fee, then the car is yours at the end of the agreement.