Car Finance Calculator
Compare PCP, HP and personal loans to find out the true cost of financing your car.
Vehicle Details
Interest Rates (APR)
Typically 30-50% of the car's value
Enter the car price and deposit to compare options
We'll show you monthly payments and total costs for HP, PCP and personal loans.
Understanding Car Finance Options
There are several ways to finance a car purchase in the UK. Each has different costs, ownership implications, and flexibility. Use our calculator to compare them side by side.
PCP (Personal Contract Purchase)
PCP is the most popular form of car finance in the UK. You pay a deposit, then monthly payments for typically 2-4 years. At the end, you can:
- Pay a final "balloon payment" to own the car
- Hand the car back with nothing more to pay (if within mileage limits)
- Use any equity as a deposit on a new car
Pros: Lower monthly payments, flexibility at end of term
Cons: Mileage restrictions, don't own the car until final payment, can be expensive overall
HP (Hire Purchase)
With HP, you pay a deposit then fixed monthly payments. Once all payments are made, you own the car outright. There's no balloon payment and no mileage restrictions.
Pros: You own the car at the end, no mileage limits, fixed payments
Cons: Higher monthly payments than PCP, less flexibility
Personal Loan
You borrow money from a bank or lender and buy the car outright. You own the car from day one and can do what you like with it.
Pros: Own the car immediately, no restrictions, can sell anytime
Cons: Need good credit for best rates, higher payments than PCP
What is APR?
APR (Annual Percentage Rate) is the standard way to compare credit costs. It includes interest and any mandatory fees, shown as a yearly rate. A lower APR means cheaper borrowing.
Be careful with dealer finance - the "headline" rate might not tell the whole story. Always check the total amount payable to see the true cost.
Things to Consider
- Total cost: PCP often looks cheap monthly but can cost more overall
- Mileage: PCP penalises high mileage - estimate accurately
- Deposit: A larger deposit reduces monthly payments and total interest
- Term length: Longer terms mean lower payments but more interest overall
- Gap insurance: Consider this for PCP - you could owe more than the car is worth if written off
Bought a Faulty Financed Car?
If you bought a faulty car on finance, you have extra protections. The finance company is jointly liable under Section 75 of the Consumer Credit Act. We can help you reject the car and unwind the finance agreement.
Check if I can reject my carYour Rights with Financed Cars
Whether you're on PCP, HP, or bought with a loan, you have the same consumer rights under the Consumer Rights Act 2015. If the car is faulty, you can reject it within 30 days for a full refund - and the finance agreement should be unwound too.
After 30 days, you can request a repair or replacement. If that fails, you're entitled to a refund (which may have a deduction for use).