The true cost
New Car Finance Calculator
Work out monthly payments and the total cost on new car finance, including the PCP balloon.
Monthly & total, side by side
Monthly
£406.34
Total payable
£34,504
Interest £6,504 · balloon £12,000
Monthly
£616.87
Total payable
£32,610
Interest £4,610
Monthly
£616.87
Total payable
£32,610
Interest £4,610
The lowest monthly is rarely the cheapest deal. Compare the total amount payable — that's the true cost.
How we work this out
Monthly = amount financed (price − deposit) × monthly rate ÷ (1 − (1 + monthly rate)^−term). On PCP the balloon (GMFV) is deferred: Monthly = (amount financed − balloon × (1 + monthly rate)^−term) × monthly rate ÷ (1 − discount factor). Total payable = deposit + payments (+ balloon).
Figures are estimates based on what you enter. New-car APRs are often lower, and manufacturers sometimes add a deposit contribution.
Full method: how we calculate.
New car finance is usually PCP, HP or a personal loan, often at a lower rate than used because new cars carry less risk. This calculator shows the monthly payment and the total amount payable for a new car, including the PCP balloon.
A new car costs more, so the total matters even more than the monthly. Enter the price, your deposit, the term, APR and any balloon above to see both side by side.
How does new car finance work?
New car finance spreads the cost of a brand-new car over monthly payments, through PCP, HP or a personal loan. Rates are often lower than on used cars, and manufacturers frequently add deposit contributions or 0% deals.
PCP is the most popular way to finance a new car, because the monthly is low and you can change car every few years. The catch is the balloon — see exactly how it works on the balloon payment calculator.
PCP, HP or a loan on a new car?
PCP keeps the monthly lowest and lets you swap car often; HP and a loan cost less overall and end with you owning it. New cars are where PCP makes the most sense.
PCP is built for new cars: low monthly, optional balloon, change car every 2–4 years. HP costs more monthly but you own the car outright at the end. A personal loan buys the car from day one with no mileage limits.
A worked example on a new car
A £30,000 new car on PCP with £3,000 down, a £14,000 balloon, over 48 months at 8.9% APR costs about £421 a month — but around £37,189 in total to own. The same car on HP costs more monthly but less overall.
Worked example
New car finance: PCP vs HP
On a new car, PCP wins on the monthly and HP wins on the total cost to own. Your choice depends on whether you want to keep the car or change it.
If you plan to keep a new car long term, HP or a loan costs less. If you like changing car often, PCP suits you. Weigh it up in PCP vs HP.
| PCP (£14,000 balloon) | HP | |
|---|---|---|
| Monthly | ≈ £421 | ≈ £666 |
| Total to own | ≈ £37,189 | ≈ £34,979 |
| Own it? | Only if you pay the balloon | Yes, at the end |
New cars and depreciation
A new car loses value fastest in its first few years, which is why PCP balloons and negative equity matter most here. The balloon protects you from some of that drop, but not all.
If the car is worth less than the balloon at the end, you can simply hand it back — check where you would stand with the negative equity calculator. A bigger deposit also cushions the early depreciation.
Was your new car finance mis-sold?
New car finance from 2007–2024 can carry hidden-commission claims too. If a broker or dealer raised your rate for a bigger commission, you may be owed redress.
The FCA's redress scheme follows the Supreme Court ruling of 1 August 2025. Estimate your position with the compensation estimator — an estimate, not a promise, and free to claim yourself.
Frequently asked
How does new car finance work?
What's the best finance for a new car?
Why is PCP popular for new cars?
Do new cars lose value quickly on finance?
Is new car finance cheaper than used?
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