How much car can I afford per month in the UK?
Most people in the UK buy cars using finance (PCP or HP), meaning affordability is based on monthly payments rather than total price. This tool helps you estimate what you can realistically afford.
Adjust the monthly budget, deposit, and term length to see an instant estimate of the car value you could finance, plus total cost over the deal.
Car finance calculator
Most cars in the UK are purchased using finance (PCP or HP), where buyers pay a deposit and a fixed monthly cost. This estimate gives a realistic guide based on typical finance rates (~8% APR).
How much you can comfortably pay each month
£200–£350/month is a sensible range for most UK buyers. This is what many people on a typical salary comfortably spend on a car.
How much should you spend on a car?
A widely used rule is to keep your total monthly car costs — including finance, insurance, fuel or charging, and servicing — between 10% and 20% of your net monthly income. For most UK salaries, that means:
| Annual salary | Est. take-home | 10% budget | 20% budget |
|---|---|---|---|
| £25,000 | £1,750 / mo | £175 / mo | £350 / mo |
| £30,000 | £2,050 / mo | £205 / mo | £410 / mo |
| £40,000 | £2,550 / mo | £255 / mo | £510 / mo |
| £50,000 | £3,150 / mo | £315 / mo | £630 / mo |
| £60,000 | £3,650 / mo | £365 / mo | £730 / mo |
| £70,000 | £4,150 / mo | £415 / mo | £830 / mo |
The practical rule: If your car payment (finance only) is more than 15% of your take-home pay, you are likely to feel financial pressure — especially if you also have a mortgage, rent, or other loan repayments. Staying at or below 10–12% gives you a comfortable buffer.
What does your budget get you?
A rough guide to the car types typically available at each monthly finance budget, assuming a modest deposit and 48-month term.
A used supermini or small hatchback (3–6 years old). Reliable everyday transport with low running costs. Good fit for first-time car buyers or those on a tight budget.
A nearly-new small hatchback, a used family hatchback, or an older crossover. Wider choice, better specification, and often still covered by warranty.
A new or nearly-new family SUV, a mid-spec executive car, or an entry-level EV on PCP. Comfortable and well-equipped — a popular bracket for buyers on £40k–£60k.
A new premium SUV, a higher-spec executive car, or a longer-range EV. At this level, running costs (insurance, servicing) are also higher — build those into your budget.
General guidance only — not specific models. Car values and availability change frequently. Always get quotes from multiple dealers and lenders.
PCP vs HP explained simply
- +Lower monthly payments — you only finance part of the car's value
- +Large "balloon" payment at the end if you want to own it
- +Can hand the car back with nothing more to pay (if in good condition)
- +Mileage limits apply — exceed them and you pay a penalty
- +Good if you want a newer car every 3–4 years
- +Higher monthly payments — you pay off the full car value
- +You own the car outright once the final payment is made
- +No mileage limits or end-of-term condition worries
- +Simpler structure — no balloon payment surprises
- +Good if you plan to keep the car long-term
Which is better? It depends on how you use cars. If you like changing cars every few years, PCP keeps monthly costs low. If you want to own and keep driving, HP gives you a clean financial endpoint. Both use the same APR-based interest calculation — this tool estimates the car value you can reach under either approach.
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