UK Car Finance Calculator
Calculate monthly payments for PCP and Hire Purchase car finance
Car Finance Calculator
Calculate monthly payments for PCP and Hire Purchase
£
£
months
%
£
Personal Contract Purchase (PCP)
Monthly Repayments
£300
Loan Term
36 months
APR
6.9%
Optional Final Payment
£10,000
Total Amount Repayable
£20,800
Total Amount of Credit
£32,500
Hire Purchase (HP)
Monthly Repayments
£650
Loan Term
36 months
APR
6.9%
Total Amount Repayable
£26,400
Total Amount of Credit
£22,500
How It Works
PCP (Personal Contract Purchase): Lower monthly payments with an optional final payment at the end. You can return the car, part-exchange it, or pay the final amount to keep it.
Hire Purchase (HP): Fixed monthly payments until you own the car outright. No final payment required - you own the car at the end of the term.
UK Car Finance Information 2025/26
Current Finance Rates
- New Car PCP: 2.9% - 7.9% APR
- Used Car HP: 6.9% - 15.9% APR
- Personal Loans: 6.8% - 19.9% APR
- Manufacturer finance: Often 0-3.9%
- Bank loans: Typically higher rates
PCP vs HP
- PCP: Lower monthly payments
- PCP: Balloon payment at end
- HP: Own car at end of term
- HP: Higher monthly payments
- Both: Fixed interest rates
Leasing Benefits
- Lower monthly payments
- Always drive newer cars
- Maintenance packages available
- No depreciation risk
- Mileage restrictions apply
Additional Considerations
- Early termination charges
- Excess mileage charges
- Damage charges at return
- Gap insurance recommended
- Check manufacturer incentives