PCP Car Finance Calculator
Find out the true cost of your car deal before you sign. Calculate your monthly instalments, total interest, and final balloon payment.
Ready to Quote
Enter the vehicle price, your deposit, and the dealer's APR to see your true monthly cost.
Beware of the Balloon
Remember, with a PCP, you actually pay interest on the Guaranteed Minimum Future Value (the balloon) for the ENTIRE duration of the agreement, even though you aren't paying that chunk of capital down.
Understanding PCP Car Finance
The Illusion of Low Payments
Personal Contract Purchase (PCP) is heavily pushed by car dealerships because it makes expensive cars look affordable. By deferring a large chunk of the car's value to the end of the agreement (the balloon payment), your monthly payments shrink dramatically.
However, the hidden trap that catches many buyers is the total interest. Because you are only paying down part of the debt, the large remaining balloon payment generates interest every single month for the full 3 to 4 years of the agreement.
PCP vs HP: What's the difference?
PCP (Personal Contract Purchase)
Lowest monthly payments. You generally don't own the car at the end unless you pay a massive final balloon payment. Strict mileage limits apply, and any damage beyond fair wear-and-tear will be heavily penalised if you hand the car back.
HP (Hire Purchase)
Higher monthly payments, but there's no balloon payment at the end. Once you make the final monthly payment, the car is 100% yours. Usually results in less total interest being paid overall.
PCP Finance FAQs
Financial Disclaimer
This calculator provides an estimate of your monthly car finance payments based on standard amortisation formulas typical of UK lenders. Actual quotes from a dealership may vary slightly due to daily interest compounding or documentation/option to purchase fees being rolled into the first or final payment. We are not financial advisors or a credit broker.