Review the results of your PCP calculation below. Click on the rotating iCalculator icon for more information and guides for PCP Finance: Ensure you get the best deal on your next new or used car.
PCP Finance Terms:
30 second PCP Finance Guides
Learn the lingo, buy informed.
PCP Car Finance Calculation:
The PCP Calculator is designed to allow you to calculate and compare PCP deals on new and used cars. With the PCP Calculator you can:
- Produce unlimited PCP quotes and comparison in just a few clicks.
- Email the results of your PCP calculation to yourself and/or a friend for offline comparison or for reference when you visit the dealership.
- Access PGP guides and information to help you understand and get the best PCP Finance deal. If you are new to PCP Finance we suggest you click on the rotating icons next to each PCP term, these are links to supporting articles and guides abour PCP finance (that open in a new tab or browser).
PCP: A quick Introduction
PCP is a the most common loan agreement taken out on new and nearly new cars. PCP allows individuals to put little or no deposit down on the purchase of a new car and still have low monthly payments. At the end of the PCP contract, the car must be returned or a final payment made to purchase the car. Use the PCP Calculator to produce a monthly illustration of your PCP repayments, understand how much interest you will pay on your PCP loan and decide if a PCP car loan is the right option for the financing of your next car.
Using the PCP Calculator
Use the PCP calculator to work out how much your month car loan repayments will be when taling a Personal Contract Purchase (PCP) car loan. The PCP car loan calculator will also provide an illustration of how much you could expect to repay each month based on different repayment periods. If you are thinking of taking out a PCP car loan it is important that you:
- Use the interest calculator to provide an illustration of monthly car loan repayment amounts for different terms and interest rates
- Review the car loan borrowing considerations before commiting to a car loan agreement
- Email the PCP car loan calculation to yourself. Take a few days and mull over whether you really want to commit to that monthly interest repayment before you commit to the car loan.
- Remember that at the end of the PCP contract term you will have to either return the car or pay the outstanding loan amount, typically thr Guaranteed Future Value (GFV)
The PCP car loan calculator will provide your a monthly interest repayment over 1 year, 2 years, 3 years, 4 years, 5 years, 10 years and compare them to a monthly repayment period of your choosing (so you can create your own car loan illustration).
Considerations before taking out a PCP Car Loan
- Affordability: Be sure you can really afford to make the car loan repayments. Only you really know if you can afford a new car or not and taking out loans which you will struggle to repay will only cause you financial hardship and pain in the future.
- Shop around: It always pays to shop around and see what deals are available. Most banks and building societies run promotions at various points of the year. Never assume that one lender is better than the other, look for the good deals as they could save you a lot of money. Banks are normaly cheaper than car dealerships!
- Check the Interest Rate: The most common mistake that lenders make is not fully reading and understanding the interest rates applied to their car loan. Make sure that the catchy low interest rate is the one you are getting. Most lenders advertise at low interest rates to get you in the door but you are likely to find that achieving the low rates means borrowing more than you budgeted for or taking out the loan over a longer term, this will mean you repay much more money! Don't be tempted!
- Borrow Little, Repay Quickly: The best car loan is one repaid quickly. A quick repayment means less interest paid and less stress about your debt.
- Pay Day Loans: Pay day loans are brilliant if you want to destroy your financial credibility, get yourself into spiraling debt and have years of stress and anxiety over your finances. DO NOT use Pay Day lenders and certainly not for a car, there are much better options. They do not care about you or your finances and will destroy your life simply to make money. At iCalculator, we seriously hope that the government takes measures to outlaw these morally and ethically corrupt businesses.
- Don't Lend at All! It's difficult to avoid taking loans in modern society. Modern life is about consumerism and spending. Our grandparents survived and had healthy life's by getting by and enjoying the rare treats. There is a lot to be said for living a simpler life without financial stress. If you can, save. Make that reward or treat worthwhile my making your money work for YOU and not for someone else.
- Personal Loan or Car Loan? Personal loans normally offer better interest rates than car loans but your really should shop around. Second hand dealerships normally offer ridiculous APR rates and will push you to take the loan, often showing a lower APR that you will receive. Used car loans typically provide large commissions for used car dealerships and will rarely offer a better interest rate that a personal loan. If you are looking to buy a new car, shop around and be patient. Almost every dealership offers a 0% finance deal at some point in the year. You can get your dream car and a dream interest rate if you are patient and buy wisely.
- PCP - Personal Contract Purchase PCP's have become increasing popular over the past few years as they allow those with no deposit to access the same/similar monthly car rental prices as those who put a deposit down. PCP's can be a good option but beware, depending on your preferences you need to consider the 'cons' of PCP car finance.
PCP Finance: the 'Cons'
PCP Finance is like any other finance offer, there will be a financial contract with clauses designed to protect you as a consumer but typically weighed to protect the seller (dealership etc). As most consumer advisors and financial advisors will tell you, read the small print. PCP Finance contracts will have a lot of terms that you may not be used to seeing (click on the rotating iCalculator icons on the PCP calculator for guides on each of the finance terms or visit our finance terminology section).
- You DO NOT own the car: the car is legally owned by the finance company, NOT YOU. You do not own the car until the final payment has been made.
- Milage Restrictions PCP contracts are normally include distance related caveats. You will be limited to the annual mileage you choose upfront at the point of contract. If you exceed the PCP milage specified you will be charged excess mileage fees if you decide not to purchase the car at the end of the PCP contract.
- Cancelling a PCP Contract If your circumstances change and you wish to cancel your contract and return the car, there is likely to be a contract break penalty fee. The amounts charged for exiting a PCP contract vary, check your agreement for more details.
- Modifications, Pimp those Wheels! or not! Did we mention, IT'S NOT YOUR CAR. You cannot modify the car in any way without permission from the finance company. If you do modify the car without permission you will face a penalty at the end of the contract unless you choose to buy.
New - We know offer a separate car loan and PCP calculator web application, this offers the same PCP calculator with greater interaction and information on car finance.
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