See monthly cost first. Not just prices
Set to 10% — a typical starting point
Rates typically range from around 7% to 15% depending on your credit profile, the car and the lender. Enter whichever rate you want to model.
Estimate only — not a quote or an offer of finance. Figures are illustrations based on the numbers you enter. Actual payments depend on the lender, your circumstances and the agreement type. Key2Car is a marketplace and does not provide finance.
Illustrative estimates only. This calculator shows what a car could cost per month based on the numbers you enter. It is not a quote, an offer of credit or a decision on what you could borrow. Key2Car is an online marketplace. We do not provide, arrange or broker finance, and we are not authorised or regulated by the Financial Conduct Authority (FCA).
The calculator works for any car, new or second-hand, so you can use it to test a budget before you start looking. Enter:
It then shows an estimated monthly payment, the amount financed, the total amount payable and the total cost of credit. Change one number at a time to see what moves the monthly figure most.
The amount you finance is the car price minus your deposit. Interest is then added at the rate you choose, and the total is spread across the term as equal monthly payments. With a PCP-style agreement, the optional final payment is taken out of the amount being paid off monthly, which is why monthly figures are lower but a large payment is due at the end if you want to keep the car.
That means four numbers decide your payment: the price, the deposit, the length of the agreement and the interest rate. A bigger deposit means a smaller amount borrowed. A longer term lowers each monthly payment but usually means you pay more interest overall.
A deposit reduces the amount you need to finance, which lowers both the monthly payment and the interest you pay. The calculator starts with a deposit of 10% of the car price, but you can enter any amount.
APR stands for annual percentage rate. It is a yearly measure of the cost of borrowing, so it lets you compare different credit offers on the same basis. Lenders usually advertise a “representative APR”. Under UK rules this rate must be available to at least 51% of the people who are accepted, which means your own rate could be higher or lower. The only way to find out your rate is to ask a lender, who will check your circumstances.
The term is how long the agreement runs, often somewhere between one and five years. Shorter terms have higher monthly payments but cost less in total. Longer terms are easier month to month but add interest.
The monthly payment is only part of the picture. The total amount payable is everything you would pay over the agreement: your deposit, all the monthly payments and, with a PCP, the optional final payment if you choose to keep the car. The total cost of credit is that total minus the price of the car, in other words the extra you pay for borrowing. Always compare the total as well as the monthly figure.
The explainers at the top of this page cover the three common agreement types. In short, hire purchase and conditional sale spread the full cost of the car over fixed monthly payments, while PCP keeps payments lower by deferring a final payment. Each has different rules about ownership, mileage and what happens at the end, so read the agreement carefully before you sign anything.
This calculator cannot tell you how much a lender would let you borrow. Lenders decide that after checking your income, existing commitments and credit history, and approval is never guaranteed.
What you can do here is work out what you are comfortable paying. Add up your monthly outgoings, then leave room for insurance, fuel, tax and servicing as well as the finance payment. Try a few combinations of deposit and term to see which monthly figure fits, and aim for a total cost you are happy with, not only a low monthly number. For free, impartial guidance on borrowing, see MoneyHelper.
Ready to look? Search used cars by price or monthly budget, or browse all used cars for sale.
No. It gives an illustrative estimate from the figures you enter. A real quote can only come from a lender, who will check your circumstances and set the rate.
No. Key2Car is an online used-car marketplace. We do not provide, arrange or broker finance, and we are not authorised or regulated by the FCA.
Yes. Enter the asking price of any new or used car, a deposit, a term and an APR to estimate the monthly cost.
Enter whichever rate you want to model. Rates depend on the lender, the car and your circumstances, so the figure here is a guess to test with, not an offer.
It lowers the monthly payment, but you usually pay more interest over the whole agreement, so the total cost is higher.
With hire purchase you pay off the full cost of the car in fixed monthly payments. With PCP you pay off part of the cost monthly and have the option of a final payment to keep the car, hand it back or part-exchange it.
