How much should I spend on a car in the UK?
Keep your monthly car finance payment at 10–15% of your monthly take-home pay — or your total car costs (finance + insurance + fuel) below 20%. On a £30k salary that means roughly £200–£300/month. On £50k it's £300–£475/month.
The right amount depends on your salary, other financial commitments, and how much you rely on the car. The table below gives a straightforward starting point by income level.
Recommended car budget by salary
| Salary | Take-home / mo | Finance budget |
|---|---|---|
| £25,000 | £1,750 | £175 – £350 |
| £30,000 | £2,050 | £205 – £410 |
| £40,000 | £2,550 | £255 – £510 |
| £50,000 | £3,150 | £315 – £630 |
| £60,000 | £3,650 | £365 – £730 |
| £70,000 | £4,150 | £415 – £830 |
Calculate your monthly budget
Enter your monthly budget and deposit to see what car value you can realistically finance.
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.
Rules of thumb
Keep your monthly finance payment below 10% of your take-home pay. This is the conservative approach — leaves room for higher insurance, fuel, or unexpected costs.
Monthly finance payment up to 15% of take-home is reasonable if your other outgoings are low. A common real-world figure for buyers with stable finances.
Some advisers suggest keeping total car costs (finance + insurance + fuel + tax) below 20% of net income. This is harder to hit, but a useful ceiling if you rely heavily on the car.
Disposable income (after rent/mortgage, food, and utilities) is a more personal check. Your car payment should not take up more than half of it — that leaves room for savings and unexpected bills.
PCP or HP — which affects your budget more?
PCP deals show lower monthly payments because you are not paying off the full car — you pay a deposit, instalments, and then optionally a final balloon payment to own it. This makes it easier to access a more expensive car on a limited monthly budget.
HP means higher monthly payments but you own the car at the end. There are no mileage restrictions, no balloon payment, and no risk of being over the condition limit. If you plan to keep a car for 5+ years, HP often works out cheaper overall.
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