Finance: Total Cost of Car Ownership
Compare up to three cars across every real cost of ownership — not just the sticker price or monthly payment.
What you'll need
OTR price and finance quotes (APR, deposit, term, balloon or monthly rental)
Your realistic annual mileage
Insurance quotes, VED, and official MPG or mi/kWh figures
Current fuel or electricity pricing
Filling it in
Basics. Name each car descriptively, set your ownership period (36–48 months matches most PCP and lease terms), and enter honest annual mileage — it's the single most influential input.
Finance and depreciation. Pick your finance type and the relevant fields appear:
Cash or HP — enter an expected resale value. Check three-year-old examples on Auto Trader for a realistic figure.
PCP — model both "keep and sell" and "hand back" to see which exit works better.
Lease — set mileage allowance realistically. Excess charges of 10–15p per mile compound quickly.
Energy. For petrol and diesel, knock 15–20% off the WLTP figure for real-world MPG. For EVs, 3.5 mi/kWh is a reasonable year-round average, and set charging loss to around 10%. For PHEVs, be honest about how often you'll actually plug in.
Tax, insurance, maintenance, extras. Use actual insurance quotes, not guesses. Budget £300–500 per year for repairs contingency, more for older cars. Don't forget ULEZ, tolls, and parking.
Reading the results
Three badges can appear: Lowest total cost, Lowest cost per mile, Lowest monthly cost. They rarely agree — a lease often wins on monthly cost but loses overall; cash often wins on total but ties up capital.
The breakdown shows where your money actually goes. If depreciation dominates, residuals matter more than APR. If energy is a small slice, switching powertrain won't transform your finances.
Get more from it
Run the same car on different finance types to see which ownership model suits it.
Vary the mileage by a few thousand either way — if the ranking flips, your answer is fragile.
Knock 20% off resale values and re-run. If your winner still wins, the conclusion is robust.
Total Cost of Ownership Calculator UK
Compare up to three cars across finance, depreciation, energy, tax, insurance, maintenance and extras.