What car can I afford on a £60k salary in the UK?
On a £60,000 salary, a typical monthly car budget would be around £400–£600 depending on your financial commitments. That comfortably covers most executive cars, large SUVs, or a premium EV on a PCP deal.
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Adjust the monthly budget and deposit to see what car value you could realistically finance. Pre-filled with a typical budget for a £60.0k salary.
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
Anything above £400/month typically starts to stretch budgets. Fine on a higher income, but keep it below 15% of your take-home pay.
Typical monthly car budget
Your take-home on £60k is roughly £3,600–£3,700/month (slightly lower due to 40% tax on earnings above £50,270). A 10–15% car budget gives you £360–£555. At this level many buyers also have significant mortgage repayments, so keep total debt payments below 50% of net income.
What does that get you?
A new or nearly-new mid-size executive car (saloon, estate, or SUV), or a premium EV on a manufacturer PCP deal. Good range of brand-new options from mainstream manufacturers.
A larger luxury SUV, a high-spec executive estate, or a premium EV with longer range. Entering the market where the car itself becomes a meaningful lifestyle asset.
A new premium SUV (e.g. full-size German SUV class), a luxury EV, or a performance-oriented executive car. Comfortable at this salary but factor in higher insurance and servicing bills.
Examples are illustrative by car class. Actual availability and pricing varies. Always factor in insurance, fuel/charging, tax, and servicing costs on top of your finance payment.
How car finance works in the UK
At £60k, manufacturer and premium brand finance programmes become highly relevant. Brands like BMW, Mercedes, Audi, and Volvo offer structured PCP deals often featuring low deposit options and competitive APRs for buyers with strong credit histories. Salary sacrifice schemes — offered by some employers — can make EVs significantly more tax-efficient, sometimes reducing the effective monthly cost by 30–40% for higher-rate taxpayers.
Pay a deposit, then fixed monthly payments. At the end, choose to return the car, pay the balloon amount to keep it, or part-exchange. Lower monthly costs, higher flexibility.
Pay a deposit, then fixed monthly payments that cover the full car value. You own it outright at the end. Higher monthly cost, but no mileage limits and no balloon payment.
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Housing affordability
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