Finance: PCP Comparison
Personal Contract Purchase (PCP) is the UK's most popular way to finance a new car — but the small differences between offers can change the total cost by thousands of pounds. This calculator lets you compare up to three PCP deals side by side: monthly payment, total cost over the term, balloon payment and APR. Built for honest comparison. No broker spam, no email gate. Plug in three offers and see which actually saves you money.
How To Use This Calculator
Grab three PCP quotes from different sources — manufacturer-direct, an online broker and your local dealer is a sensible spread. For each one, enter: car price, deposit, term in months, balloon (final payment) and APR. The calculator returns monthly payment, total amount payable and total cost. "Lowest monthly" highlights the cheapest payment, "lowest total" highlights the cheapest overall — they're often different deals.
PCP Comparison Calculator
Compare three PCP scenarios side by side.
How PCP Works
PCP is a finance agreement split into three parts: a deposit, a series of monthly payments, and a final "balloon" payment that reflects the car's projected residual value at the end of the term. You're effectively paying for the car's depreciation across the contract, plus interest. At the end, you have three options: pay the balloon and own the car outright, hand it back (subject to mileage and condition checks), or part-exchange and roll into a new PCP. UK PCP deposits are typically 10% of the car's value, terms run 24–48 months, and APR sits anywhere between 4.9% and 12% depending on your credit profile and current base rate. The cheapest monthly deal is rarely the cheapest total deal. That's why side-by-side comparison matters.
Worked Example
A £45,000 BMW M340i on PCP over 48 months: Deal A — 10% deposit (£4,500), 9.9% APR, £15,000 balloon → monthly ~£545, total ~£45,660. Deal B — 15% deposit (£6,750), 7.9% APR, £14,000 balloon → monthly ~£489, total ~£44,222. Deal B costs more upfront but saves £1,438 over the four years. Run your own numbers above and see which deal actually wins on total cost, not just the headline monthly figure
Frequently Asked Questions
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A: PCP defers a chunk of the car's value to a final balloon payment — lower monthly cost, no automatic ownership. HP spreads the full purchase price across monthly payments, ending with you owning the car outright. PCP is cheaper monthly; HP is usually cheaper overall.
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A: Yes. UK lenders allow voluntary early settlement at any point — you'll save on remaining interest. After paying 50% of the total amount payable (including the balloon), you also have voluntary termination rights and can return the car and walk away.
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A: Not always. Cash is usually cheapest if you have it. Personal loans can beat PCP if your credit is strong. PCP wins when you want lower monthly payments and the flexibility to swap cars every three or four years without owning a depreciating asset.
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A: Excess mileage charges run 8–15p per mile and add up fast. If you're regularly over, ask for a higher allowance upfront — it'll cost more per month, but less than the post-term penalty.
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A: Always shop around. Dealer-arranged finance is convenient but rarely cheapest. Compare offers from your bank, online brokers and manufacturer-direct schemes. A 1% APR difference on £40,000 over 48 months is over £800 of avoidable cost.