Car Finance
Calculator
Representative 23.9 % APR (Subject to status)Rates from 9.9 % APR (Subject to status)Our car finance calculator gives you an instant, obligation-free estimate of your monthly repayments, with no application required. Whether you're comparing PCP or HP deals, simply calculate car finance in minutes by entering your loan amount, preferred term, and credit profile.
Car finance deals are available from 9.9% APR, with no impact on your credit score for the initial eligibility check. A full credit check will be carried out by the lender if you proceed to a formal application.
Use the financial calculator
With the help of the calculator you can roughly estimate possible car loan options.
Finance calculator
- 36 mo
- 42 mo
- 48 mo
- 60 mo
Your estimated examples
Representative example: Borrowing £9,000 over 60 months with a representative APR of 23.9%, monthly payment of £234.61, total cost of credit £5,076.60, total amount payable £14,076.60. Rates from 9.9% APR. We are a credit broker, not a lender.
With the help of the calculator you can roughly estimate possible car loan options.
How does a car finance calculator work?
A car finance calculator (sometimes called a car loan calculator) is an online estimating tool that shows your likely monthly car payments before you commit to any agreement. It does not guarantee approval or lock you into a rate. Results are based on an assumed APR and are subject to a full credit assessment by an FCA-regulated lender, in line with Financial Conduct Authority consumer credit rules.
Enter your finance information
Choose your finance type (PCP or HP)
Compare results and get your best deal
PCP vs HP vs personal loan: which is right for you?
PCP and HP cover roughly 99% of regulated UK consumer car finance agreements, according to the Finance & Leasing Association (FLA, 2024). Personal loans sit outside motor finance regulation but remain a comparable option for drivers with strong credit. Each product has a different ownership structure, payment shape, and best-fit profile.
PCP: Personal Contract Purchase
Personal Contract Purchase (PCP) is a regulated motor finance agreement under the Consumer Credit Act 1974. PCP defers part of the car's value to the end of the term as an optional final payment, sometimes called the balloon payment.
On a £7,500 loan over 60 months at 23.9% APR, a PCP deal produces estimated monthly payments of around £159.82 with a £4,875 optional final payment.
At the end of a PCP term you have three choices:
- Pay the balloon payment and own the car outright
- Return the car with nothing further to pay, subject to mileage and condition limits
- Use any equity to part-exchange into a new agreement
PCP suits drivers who prefer lower monthly costs and like to upgrade every few years.
HP: Hire Purchase
Hire Purchase (HP) is a secured motor finance loan, also regulated under the Consumer Credit Act 1974. You borrow the full purchase price (minus any deposit) and repay it in equal monthly instalments over a fixed term. There is no balloon payment, so every pound is repaid during the agreement.
Using the same £7,500, 60-month, 23.9% APR example, HP monthly payments work out at around £205.60. After the final payment, you own the car outright. HP suits drivers who want guaranteed ownership without managing a large lump sum.
Personal loan: for reference
A personal loan from a bank or building society is unsecured. The loan is not tied to the vehicle, so you own the car from day one.
Rates depend on your credit profile and the lender. Personal loan rates can be competitive for applicants with excellent credit. For applicants with fair or poor credit, specialist motor finance brokers like Car-Finance.co.uk often access rates that match or beat high-street personal loans, because the loan is secured against the vehicle.
| PCP | HP | Personal Loan | |
|---|---|---|---|
| Car ownership | Only if balloon paid | Yes, after final payment | Yes, from day one |
| Balloon payment | (~£4,875 example) | ||
| Monthly payment* | Lower (~£113/mo) | Higher (~£174/mo) | Varies |
| Typical term | 24 to 48 months | 24 to 60 months | 12 to 60 months |
| Deposit | Lower deposit possible | Larger deposit typical | Not required |
| Typical APR | 9.9% to 23.9% | 9.9% to 18.9% | 6% to 25% |
| Best for | Frequent upgrades | Guaranteed ownership | Flexible use |
Estimates based on £7,500 / 60 months / 14.9% APR. Subject to individual credit assessment.
How we make money
We receive a commission from lenders when we arrange finance on your behalf. This does not affect the rate you are offered.
Decoding APR: the true cost of your car finance
APR stands for Annual Percentage Rate, the single most important number to compare when shopping for car finance. Unlike a headline interest rate, APR includes both the interest charged and any mandatory fees in the agreement, expressed as one annual percentage. The FCA Consumer Credit Sourcebook (CONC) requires every regulated UK lender to disclose APR before you sign.
A lower APR means you pay less overall. On a £7,500 loan over 60 months, the difference between 9.9% APR and 18.9% APR is roughly £1,800 in extra interest. That gap makes shopping around genuinely worthwhile.
Your APR offer depends mainly on your credit score. The stronger your credit history, the lower the rate lenders are willing to offer. The table below shows indicative UK car finance APR ranges by credit band, drawn from Car-Finance.co.uk's panel of 15+ FCA-regulated lenders (May 2026), with HP examples on a £7,500 loan over 60 months.
| Credit score | Typical APR | Est. monthly* | Total repayable* | Total interest* |
|---|---|---|---|---|
| Excellent | 4.9% to 7.9% | ~£140 | ~£8,390 | ~£890 |
| Good | 7.9% to 12.9% | ~£152 | ~£9,120 | ~£1,620 |
| Fair | 12.9% to 18.9% | ~£174 | ~£10,440 | ~£2,940 |
| Poor | 18.9% to 29.9% | ~£198 | ~£11,880 | ~£4,380 |
Estimates based on £7,500 / 60 months / 14.9% APR. Subject to individual credit assessment.
FCA-regulated lenders
All lenders regulated by the Financial Conduct Authority must disclose APR before you sign any agreement. Car-Finance.co.uk works exclusively with FCA-regulated credit providers. You can verify any lender's registration on the Financial Services Register.
The role of your deposit in car finance
A deposit is an upfront payment that reduces the amount you need to borrow. The more you put down, the smaller your loan, and that has two compounding effects on the total cost of credit.
First, a smaller loan means lower monthly repayments. The table below shows the impact on estimated HP payments at 23.9% APR over 60 months for a £7,500 car.
| Scenario | Loan amount | Est. monthly (HP)* | Total repayable* |
|---|---|---|---|
| No deposit | £7,500 | ~£205.60 | ~£12,336 |
| £750 deposit (10%) | £6,750 | ~£185.04 | ~£11,102 |
| £1,500 deposit (20%) | £6,000 | ~£164.48 | ~£9,869 |
Estimates based on £7,500 / 60 months / 14.9% APR. Subject to individual credit assessment.
Second, a deposit of 10% or more can improve the APR a lender is willing to offer, because it reduces the lender's exposure if you miss payments. That improvement compounds the saving further.
If you cannot put a deposit down right now, that is not a barrier. Many lenders on our panel offer no deposit car finance, meaning you borrow the full purchase price from day one.
Car finance with less-than-perfect credit
A less-than-perfect credit score does not automatically disqualify you from car finance. Car-Finance.co.uk works with specialist lenders, sometimes called subprime lenders, who consider applications from customers with fair, poor, or adverse credit histories, including County Court Judgments (CCJs), Individual Voluntary Arrangements (IVAs), and previous defaults.
Lenders price for risk. A Fair-credit customer might be offered 12.9% to 18.9% APR. An Excellent-score customer might receive 4.9% to 7.9% APR on the same loan. The gap adds up over the term, so it pays to know your score before you apply.
You can check your credit score free of charge with one of the three UK credit reference agencies recognised by the Information Commissioner's Office: Experian, Equifax, or TransUnion. Simple steps to improve your score include:
- Paying every bill on time, including phone and utilities
- Reducing outstanding balances on credit cards and overdrafts
- Registering on the electoral roll at your current address
- Avoiding multiple hard credit searches in a short window
- Keeping older credit accounts open to lengthen your credit history
If you have been refused car finance elsewhere, or are concerned about car finance with bad credit and no deposit, our eligibility checker uses a soft credit search that does not affect your score. A full credit check will be carried out by the lender if you proceed to a formal application. Find out more on our bad credit car finance page.
What information do I need to provide?
Using our car finance calculator is straightforward. To get the most accurate estimate, have the following details ready:
- Loan amount. Enter the total you'd like to borrow. The example above uses £7,500.
- Loan term. Select how long you want to repay: 36, 42, 48, or 60 months. A shorter term means higher monthly payments but less total interest.
- Estimated credit score. Choose Excellent, Good, Fair, or Poor from the dropdown. This helps the calculator apply a realistic APR range to your estimate.
Hit Get Results and you'll instantly see side-by-side estimates for both PCP (£113.36/pm) and HP (£174.39/pm), including monthly payment, interest rate, optional final payment, and total amount repayable. No personal data or credit search is required at this stage.
Our Lenders
We work with over 15 lenders offering 100+ HP and PCP deals, so you have access to the strongest available offer for your credit profile. Every lender on the panel is authorised and regulated by the Financial Conduct Authority and listed on the Financial Services Register.
We are credit broker, not a lender.
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Soft search only, no impact on your credit score for the initial eligibility check. A full credit check will be carried out by the lender if you proceed to a formal application.
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FAQ
We've collected the most popular questions about car loans from our customers.
What is a car finance calculator?
A car finance calculator is a free online tool that estimates your monthly repayments for a car loan before you apply. Enter your loan amount, term, credit score, and any deposit. The tool shows estimated costs for PCP and HP finance deals based on an assumed APR. Results are indicative. Actual rates are subject to a full credit assessment by an FCA-regulated lender.
How does a car finance calculator work?
The calculator takes four inputs: loan amount, loan term (36 to 60 months), estimated credit score, and deposit. It applies a representative APR to calculate your estimated monthly payment, total interest, and total amount repayable. For PCP deals, it also shows the optional balloon payment due at the end of the term. Adjust any variable to compare scenarios.
What information do I need to use a car finance calculator?
You need four items: the amount you want to borrow, your preferred loan term, an estimate of your credit score, and any deposit you plan to pay upfront. You don't need your exact APR. The calculator selects a representative rate based on your credit profile. No personal data or credit search is required at this stage.
What's the difference between PCP and HP finance?
Personal Contract Purchase (PCP) features lower monthly payments because part of the car's value, the balloon payment, is deferred to the end of the contract. At the end you can pay the balloon to own the car, return the car, or refinance. Hire Purchase (HP) spreads the full loan amount into equal monthly instalments with no balloon. Payments are higher, but you own the car outright after the final payment.
How do interest rates affect my car finance?
Your interest rate, expressed as APR, determines how much you pay above the amount borrowed. A higher APR increases both your monthly payment and the total cost of credit. On a £7,500 loan over 60 months, the difference between 9.9% APR and 18.9% APR is roughly £1,800 in extra interest. The calculator uses an assumed APR based on your credit score to show realistic estimates before you apply.
How much can I borrow with car finance?
You can typically borrow between £1,000 and £75,000 for a car finance agreement, depending on the lender, your income, and your credit profile. The amount is based on affordability checks the lender carries out before approving the agreement. Use the calculator to model different loan amounts before you apply.
How much will my monthly repayments be?
Your monthly repayments depend on the loan amount, the term, the APR, and the finance type. On a £7,500 loan over 60 months at 23.9% APR, expect around £113.36 per month for PCP and £174.39 per month for HP. Representative 23.9% APR. Use the calculator to test different combinations against your budget.
Does my credit rating affect if I can take out finance?
Yes. Your credit rating influences both whether a lender will approve your application and the APR they offer. An Excellent credit score may qualify for 4.9% to 7.9% APR. A Poor score may attract 18.9% to 29.9% APR. Specialist subprime lenders on our panel consider applications across the full credit spectrum, including CCJs and IVAs.
How much of a deposit should I pay?
You do not have to pay a deposit, but a deposit of 10% or more reduces both your monthly payment and the total interest you pay. On a £7,500 car, a £750 deposit (10%) cuts the estimated HP monthly payment from around £174 to around £157. A larger deposit can also improve the APR a lender offers.
What is a representative APR?
A representative APR is the rate at least 51% of customers approved by a lender are offered, in line with FCA financial promotion rules. Car-Finance.co.uk's representative APR is 23.9%. Your individual rate may be higher or lower based on your credit assessment, deposit, and chosen finance product.
What is a good APR for a car finance deal in the UK?
A good APR for a car finance deal in the UK depends on your credit profile. For applicants with excellent credit, 4.9% to 7.9% APR is competitive. For fair credit, 12.9% to 18.9% APR is typical. For poor credit, 18.9% to 29.9% APR reflects the higher risk lenders accept. Always compare the APR, not just the headline interest rate, because APR includes mandatory fees.
What is the cheapest way to finance a car?
The cheapest way to finance a car is the option with the lowest APR and the shortest term you can comfortably afford. For applicants with excellent credit, an HP agreement or a personal loan often delivers the lowest total cost. For fair or poor credit, a specialist HP deal arranged through a broker on a 36 to 48 month term usually undercuts the same lender's longer-term offer. Always compare the total amount repayable, not just the monthly payment.
Is car finance more expensive with bad credit?
Yes. Car finance is more expensive with bad credit because lenders price for higher default risk. A customer with a Poor credit score may pay 18.9% to 29.9% APR. An Excellent-score customer may pay 4.9% to 7.9% APR on the same loan. On a £7,500 loan over 60 months, that gap is roughly £3,500 in total interest paid.
What credit score is needed to finance a car?
There is no single minimum credit score for car finance in the UK because each credit reference agency uses a different scale. Experian rates scores up to 999, Equifax up to 1,000, and TransUnion up to 710. Specialist lenders on our panel approve applications across all credit bands, including borrowers with CCJs and IVAs. Your APR depends on the band, not a fixed cut-off.
Am I eligible for a car finance deal?
You are likely eligible for a car finance deal if you are 18 or over, a UK resident, and can show evidence of regular income that covers the monthly payment. Lenders also check your credit history through Experian, Equifax, or TransUnion. To see which lenders may accept you, run a soft eligibility check. The initial check does not affect your credit score; a full credit search is carried out by the lender if you proceed to a formal application.
Car-Finance.co.uk is a trading name of Moneyrepublic Ltd (Company No. 12141408), registered at Lumiere House, Elstree Way, Borehamwood, England, WD6 1JH. Moneyrepublic Ltd (FRN: 967024) is an Appointed Representative of F&I Online Ltd (FCA No. 731217), which is authorised and regulated by the Financial Conduct Authority. We act as a credit broker, not a lender. We work with several carefully selected credit providers who may be able to offer you finance for your purchase. Whichever lender we introduce you to, we will typically receive a commission from them (either a fixed fee or a fixed percentage of the amount you borrow). This will not affect the rate you are offered or the amount you will pay back.
All finance is subject to status and income. Terms and conditions apply. Applicants must be 18 years or over.