Is £300 a month car affordable in the UK?
Yes — £300/month is a sensible and achievable car payment for most UK earners on a salary of £35,000 or above. It falls within the widely recommended 10–15% of net monthly income guideline for buyers on typical UK wages. Below £30k it starts to feel stretched.
£300 a month is one of the most common car finance budgets in the UK. At this level you are looking at a nearly-new mid-size hatchback, a used family SUV, or an entry-level electric vehicle on a PCP deal. It is a realistic budget, but whether it is affordable depends entirely on your income and other outgoings.
This guide breaks down exactly when £300/month works, when it starts to stretch, and what that budget will realistically get you in 2026.
Try the calculator at £300/month
Pre-set to £300/month — adjust the deposit and term to see how the numbers change.
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.
Is £300/month affordable on your salary?
The widely used rule is to keep car finance below 10–15% of your take-home pay. Here is how £300/month sits across different UK salary levels:
| Salary | Take-home / mo | £300 as % of income | Verdict |
|---|---|---|---|
| £25,000 | £1,750 | 17% | Stretched |
| £30,000 | £2,050 | 15% | At the limit |
| £35,000 | £2,300 | 13% | Manageable |
| £40,000 | £2,550 | 12% | Comfortable |
| £50,000 | £3,150 | 10% | Sensible |
| £60,000 | £3,650 | 8% | Conservative |
What does £300 a month get you in 2026?
At £300/month with a modest deposit and a 48-month term, you are typically looking at a car valued in the £12,000–£16,000 range. Here is what that budget realistically buys:
Around £12,000–£13,500 car value. A 2–3 year old mid-size hatchback (Golf, Focus, or similar class) with a reasonable mileage and service history. Reliable everyday transport.
Around £13,000–£14,500 car value. A nearly-new small SUV (e.g. Peugeot 2008 class, Ford Puma class) or a 1–2 year old well-specified family hatchback.
Around £14,500–£16,000 car value. A newer mid-size SUV or a lower-spec used EV with reasonable range. This is the sweet spot for the money at this monthly budget.
Based on ~8% APR over 48 months. Actual car values vary by lender, credit score, and market conditions.
When does £300/month become too much?
£300/month starts to feel tight if any of the following apply to your situation:
- !Your take-home pay is below £2,000/month (salary under roughly £28,000)
- !You have existing debt repayments — loans, credit cards, or student loan deductions
- !You are paying rent above £800/month or have a mortgage with significant monthly costs
- !You have dependants or irregular income that reduces your predictable disposable income
- !You are not accounting for insurance (£50–£150/month), fuel (£80–£200/month), and servicing
The real cost of a £300/month car is often £450–£550/month once insurance, fuel, and basic servicing are included. Make sure your budget accounts for the full running cost, not just the finance payment.
PCP or HP at £300/month — which is better?
- +Access a higher-value car for the same £300/month (larger GFV = lower payments)
- +Flexibility to hand the car back at the end with nothing more to pay
- +Manufacturer deals sometimes available below market APR rates
- +Mileage limits apply — typically 8,000–12,000 miles/year
- +You own the car outright once the final payment is made
- +No mileage limits or end-of-term condition penalties
- +Lower total cost over the full term compared with PCP
- +Slightly lower car value accessible at the same monthly payment
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Related car affordability guides
See how affordability changes at different salary levels.