Precision Utility
Car Finance
Calculator
Avg UK Car Finance APR
8.9%
Avg New Car Price
£29k
Estimate your monthly car finance payment in seconds. Enter the vehicle price, deposit, APR and term to see your monthly repayment, total interest paid and total cost of the agreement. Whether you're considering PCP, HP or a personal loan, this calculator helps you compare different terms from 12 to 60 months so you can find a payment that fits your budget. All car finance in the UK is regulated by the FCA.
Finance Parameters
Estimated Monthly Payment
£0.00
Monthly Payment
£0.00
Total Interest
£0
Total Cost
£0
Finance Amount
£0
How the car finance calculator works
Start by entering the vehicle price — the on-the-road price or the agreed purchase price of the car. Next, enter your deposit, which is the cash you'll pay upfront. The calculator subtracts your deposit from the vehicle price to determine the amount you need to finance.
Set the annual percentage rate (APR) your lender has quoted you, or use the slider to explore different rate scenarios. Then choose your preferred finance term using the month buttons. Common UK car finance terms range from 24 months (2 years) to 48 months (4 years), though some agreements extend to 60 months.
The calculator uses the standard amortisation formula to compute your fixed monthly payment. It also shows the total interest you'll pay over the life of the agreement and the total cost (finance amount plus interest). Adjusting the term lets you instantly see how a shorter or longer agreement changes your monthly payment and total interest.
What you need to know about car finance in the UK
Car finance is one of the most common ways to buy a vehicle in the UK. Around 90% of new cars are bought on finance, and there are several options available depending on your circumstances and preferences.
PCP (Personal Contract Purchase) is the most popular form of car finance. You pay a deposit, make monthly payments covering the car's depreciation, and at the end you can return the car, make a balloon payment to own it, or part-exchange for a new vehicle. PCP typically offers lower monthly payments than HP.
HP (Hire Purchase) is a straightforward finance option. You pay a deposit followed by fixed monthly payments over an agreed term. Once you've made all payments, you own the car outright. Monthly payments are higher than PCP but there's no balloon payment at the end.
Personal loans from banks or building societies let you buy the car outright with cash. You own the vehicle from day one and can sell it whenever you like. Rates can be competitive for borrowers with good credit histories.
All car finance in the UK is regulated by the Financial Conduct Authority (FCA). Dealers must be FCA-authorised to offer finance, and lenders must carry out affordability checks. The representative APR you see advertised must be offered to at least 51% of successful applicants.
Frequently asked questions
What is the difference between PCP and HP car finance?
PCP (Personal Contract Purchase) has lower monthly payments because you only finance the car's depreciation, not the full value. At the end you can return the car, pay a balloon payment to own it, or part-exchange. HP (Hire Purchase) has higher monthly payments but you own the car outright once the final payment is made. Both are regulated by the FCA.
What APR can I expect on car finance in the UK?
Representative APR on UK car finance typically ranges from 6% to 12% depending on your credit score, the lender and the vehicle. Manufacturer-backed deals on new cars can offer rates as low as 0% APR. Used car finance rates are usually 1-3 percentage points higher than new car rates.
How do I calculate my monthly car finance payment?
Enter the vehicle price, your deposit, the APR and your preferred term into the calculator above. It uses the standard amortisation formula to compute your fixed monthly payment, total interest and total cost instantly.
How much deposit should I put down on a car?
A deposit of 10-20% is generally recommended. A larger deposit reduces your monthly payments and the total interest paid. Some dealerships require a minimum deposit of 10%, whilst 0% deposit deals are available but usually carry higher APRs.
Is car finance regulated in the UK?
Yes, all car finance in the UK is regulated by the Financial Conduct Authority (FCA). Dealers and brokers must be FCA-authorised to offer finance. The FCA requires lenders to carry out affordability checks and provide clear information about the total cost of finance, including the representative APR.
What car finance term should I choose?
Most UK car finance agreements run for 24 to 48 months. Shorter terms mean higher monthly payments but less total interest. Longer terms of 48 or 60 months lower your monthly outgoing but increase the total cost. Consider what you can comfortably afford each month without overextending your budget.