The true cost
Car Loan Calculator: Personal Loan vs Car Finance
Work out personal car loan repayments and total interest — you own the car from day one.
Monthly payment
£308.16
Total amount payable
£18,489
over the term
LOAN result
- Amount financed
- £15,000
- Deposit
- £0
- Total interest
- £3,489
Your monthly payment is only half the story — the total is what you actually hand over. Figures are estimates; your real quote depends on the lender and your credit.
How we work this out
Monthly = amount × monthly rate ÷ (1 − (1 + monthly rate)^−term). Total payable = payments. Total interest = payments − amount borrowed.
Full method: how we calculate.
A personal car loan is money you borrow to buy a car outright, then repay in fixed monthly instalments. You own the car from day one. This calculator shows the monthly payment and the total interest.
What is a personal car loan?
A personal car loan is an unsecured loan you use to buy a car, owning it outright from the start. You repay the lender in fixed monthly instalments over the term.
Because you own the car immediately, there's no mileage limit and you can sell it whenever you like — unlike PCP or HP, where the lender owns it until you've paid.
Is car finance a personal loan?
No — car finance and a personal loan are different. With PCP and HP the lender owns the car until you've paid; with a personal loan you own it from day one and the loan is unsecured.
That distinction matters if you want to sell the car or avoid mileage limits. For the full picture, read how car finance works.
Car loan vs PCP vs HP
A loan owns the car outright; PCP keeps the monthly lowest; HP lands in between.
A £15,000 loan over 60 months at 8.9% APR is about £308 a month — roughly £18,470 in total, of which £3,470 is interest. Compare options on the main calculator.
| Loan | PCP | HP | |
|---|---|---|---|
| Own it? | Day one | Optional | At the end |
| Mileage limit? | No | Yes | No |
| Monthly | Medium | Lowest | Higher |
When a loan is the cheaper choice
A loan often works out cheaper when its APR beats the dealer's, and you want no mileage limits.
Compare the true cost on APR, not the monthly, and check whether a cheap finance deal or a loan wins for your numbers.
Frequently asked
What is a personal car loan?
Is car finance a personal loan?
Do you own the car with a personal loan?
How much interest will I pay on a car loan?
Work out your next step
Independent calculators — pick the one that fits your situation.