The true cost
Used Car Finance Calculator
Work out monthly payments and the total cost on used car finance for PCP, HP or a loan.
Monthly & total, side by side
Monthly
£217.52
Total payable
£15,941
Interest £3,941 · balloon £4,500
Monthly
£290.73
Total payable
£14,955
Interest £2,955
Monthly
£290.73
Total payable
£14,955
Interest £2,955
The lowest monthly is rarely the cheapest deal. Compare the total amount payable — that's the true cost.
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How we work this out
Monthly = amount financed (price − deposit) × monthly rate ÷ (1 − (1 + monthly rate)^−term). Total payable = deposit + payments (+ balloon on PCP). On PCP the balloon is deferred to the end. Used-car APRs are often higher than new-car rates.
Figures are estimates based on what you enter. Used-car rates depend heavily on the car's age, mileage and your credit.
Full method: how we calculate.
Used car finance works the same way as new — PCP, HP or a personal loan — but rates are often a little higher and the amounts smaller. This calculator shows the monthly payment and the total amount payable for a used car, so you see the true cost before you buy.
A lower price does not always mean a lower total once interest is added. Enter the car's price, your deposit, the term and APR above to compare the monthly with the total.
How does used car finance work?
Used car finance lets you spread the cost of a used car over monthly payments, through PCP, HP or a personal loan — exactly like new car finance. The main difference is that rates are usually a little higher.
Lenders see older cars as a bigger risk, so the APR on a used car is often higher than on an equivalent new one. You can finance a used car from a dealer, or buy privately with a personal loan and own it outright from day one.
PCP, HP or a loan on a used car?
HP and a personal loan suit most used-car buyers; PCP is offered on newer used cars but is less common. HP and a loan both end with you owning the car.
HP spreads the whole price and you own the car at the end — simple and common on used cars. A personal loan lets you buy privately and own the car outright immediately. PCP is mostly offered on approved-used cars under a few years old, with a balloon at the end.
A worked example on a used car
A £12,000 used car on HP with £1,000 down over 48 months at 12.9% APR costs about £291 a month, for a total of around £14,955. That is roughly £2,955 of interest.
Worked example
Used car finance vs new
Used car finance usually has a higher APR but a lower price, so the total cost can still be much less than a new car. Compare on the total amount payable, not the monthly.
A used car also depreciates more slowly, so you are less likely to fall into negative equity. See the full comparison on the new car finance calculator.
| Used car | New car | |
|---|---|---|
| Price | £12,000 | £30,000 |
| Typical APR | ≈ 12.9% | ≈ 8.9% |
| Monthly | ≈ £291 | ≈ £666 |
| Total payable | ≈ £14,955 | ≈ £34,979 |
Check the car before you finance it
Before you finance a used car, check it is not already on finance to someone else — you could lose both the car and your money. A quick check protects you.
Learn how in how to check if a car has outstanding finance. Then make sure your deal is fair by turning the quote back into a true-cost figure on the APR calculator.
Why used-car APRs are higher
Lenders charge more on used cars because older vehicles are riskier security — they break down more, lose value faster, and are worth less if the lender has to repossess.
On a new car the lender knows the exact value and a warranty covers early faults. On a five-year-old car with 70,000 miles, the value is less certain and the risk of mechanical trouble higher, so the APR rises to cover it. Your credit file still matters most — a strong applicant gets a better used-car rate than a weak one — but the car's age and mileage set the floor.
Age and mileage limits
Most lenders cap the car's age at the end of the term — often around 10 years — and may limit mileage. Older cars may only qualify for a shorter term or a personal loan.
A typical rule is that the car must be under about 10 years old when the final payment falls due. So a 7-year-old car might only get a 3-year term, not a 5-year one, which pushes the monthly up. Very old or high-mileage cars often can't get PCP or HP at all and suit a personal loan instead, where the car isn't the security. Check the lender's age cap before you fall for a car you can't finance on the term you wanted.
Deposits and part-exchange on a used car
A deposit or a part-exchange lowers the amount you borrow and the interest you pay. On a used car, equity in your current car can do the work.
If the car you're selling is worth more than the finance left on it, the positive equity can fund the deposit on the next one — work it out with the part-exchange calculator. If you're in negative equity (the car is worth less than you owe), rolling it into the new deal inflates the loan and the interest. A bigger deposit on a used car is especially powerful because the amounts are smaller, so each extra £100 cuts the cost noticeably.
How to get the best used-car finance rate
A few steps before you apply can take points off the APR on a used car. The rate is where used-car buyers lose the most.
- Check your credit file and fix any errors a few months before you apply.
- Save the biggest deposit you can to shrink the amount borrowed.
- Compare a dealer quote against a personal loan and a specialist lender.
- Soft-search for indicative rates before any hard application.
- Compare every quote on the total amount payable, not the monthly.
Were you mis-sold finance on a used car?
Used car finance from 2007–2024 can carry the same hidden-commission claims as new. If a broker 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 used car finance work?
Is used car finance more expensive than new?
Can you get PCP on a used car?
What's the best finance for a used car?
Should I check a used car before financing it?
Sources
We cite regulators and official UK sources only.
- FCAfca.org.uk
- Consumer Credit Act 1974legislation.gov.uk
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