Advanced options
Estimates only. Dealer quotes can include fees, and the guaranteed future value (GFV) on a PCP is set by the lender based on the car, term and mileage allowance. Not financial advice.
What The Car Finance Calculator Works Out
- Monthly payment: the car price less your deposit is the amount borrowed. On HP (Hire Purchase) it is repaid in equal instalments and the car is yours at the end. On PCP (Personal Contract Purchase) the lender defers a Guaranteed Future Value to the end, so you only pay off the difference each month, which is why PCP monthlies are much lower for the same car.
- Total payable: deposit plus every monthly payment plus, on PCP, the final payment if you keep the car. At the end of a PCP you can pay the balloon and keep it, hand it back and walk away (subject to mileage and condition), or trade in using any value above the GFV as the next deposit.
- Total interest: everything repaid minus the amount borrowed. Interest is charged on the whole outstanding balance including the deferred GFV, so on the same car and term PCP usually costs less per month but more in total interest than HP. Typical UK dealer APRs run from 0% manufacturer offers to 10% or more.
- Part-exchange value (advanced): treated as extra deposit, cutting the amount financed. Dealers sometimes inflate a part-exchange while trimming the discount, so compare the "cost to change" between quotes.
- Arrangement and option fees (advanced): an arrangement or admin fee is added to the loan and attracts interest; an option-to-purchase or completion fee (often GBP 10 on PCP, up to a few hundred pounds on some agreements) is paid with the last instalment. Both count towards the total cost of credit.
- Amount financed (advanced): the loan the payments are calculated on: price less deposit and part-exchange, plus any fees rolled in.
- Same deal as HP / PCP (advanced): the monthly payment if the identical car, deposit, rate and term were financed the other way, with the difference per month and in total. Switch the buttons above to see the full breakdown of the other product.
- Excess mileage charge (advanced): on PCP the GFV assumes an annual mileage allowance; hand the car back over it and the lender charges a pence-per-mile fee, typically 5p to 15p, sometimes more on premium cars. The card multiplies the miles over the allowance across the whole term by that rate.
- Voluntary termination point (advanced): under the Consumer Credit Act you can hand the car back once half the total amount payable has been paid, owing nothing more beyond excess mileage and damage. The card shows the month at which your deposit and payments reach that halfway mark.
- True cost per month (advanced): the total payable divided by the number of months, so the deposit, fees and final payment are included rather than just the headline monthly figure. The year-by-year table shows the interest paid and balance still owed at each year end, useful when considering early settlement, which comes with a rebate of interest.
Source and further reading: MoneyHelper.