Step-by-Step Guide
Professional Features: This calculator includes row-by-row rounding for accuracy, dynamic frequency support, Excel export functionality, and full FCA compliance with UK consumer credit regulations.
1 Select Finance Type
Hire Purchase (HP)
You pay monthly instalments and own the car at the end of the agreement.
- Fixed monthly payments
- Own the car after final payment
- No mileage restrictions
- Can sell or modify the car
Personal Contract Purchase (PCP)
Lower monthly payments with flexible end options.
- Lower monthly payments
- Three end options: return, part exchange, or buy
- Mileage restrictions apply
- Balloon payment if you buy
Personal Loan
Borrow money from a bank or lender to buy the car outright.
- Own the car from day one
- Shop around for best rates
- No restrictions on vehicle
- May require security
2 Vehicle Information
Vehicle Price (OTR)
Enter the "On The Road" price of the vehicle you want to finance.
- Includes VAT (20%)
- Includes delivery and registration
- May include first year's road tax
- This is the total price you'll pay
Part Exchange Value (Optional)
Check the box if you're trading in your current vehicle. Enter its estimated value and any remaining finance balance.
- Use online valuation tools
- Consider vehicle condition
- Get multiple valuations
- Reduces amount of credit needed
3 Deposit & Fees
Customer Deposit
The amount of cash you're putting down as a deposit.
- Larger deposits reduce monthly payments
- May help you qualify for better rates
- Consider your emergency fund
- Typical deposits are 10-20%
Documentation Fee
Admin fee charged by the finance company for processing your application.
- Usually £100-£300
- Sometimes negotiable
- Must be disclosed under FCA rules
- Added to the total cost
4 PCP-Specific Fields (if applicable)
Balloon Payment (GFV)
The Guaranteed Future Value - what the car will be worth at the end of the agreement.
- Set by the finance company
- Based on predicted depreciation
- Affects monthly payment amount
- You can pay this to own the car
Annual Mileage
How many miles you expect to drive each year.
- Affects the balloon payment
- Higher mileage = lower balloon
- Exceeding limit may incur charges
- Be realistic about your usage
5 Finance Terms
Representative APR
The Annual Percentage Rate that at least 51% of customers will receive.
- Required by FCA regulations
- Includes interest and fees
- Lower APR = lower total cost
- Based on your credit score
Agreement Term
How long you'll take to pay off the finance.
- Shorter terms = higher payments but less interest
- Longer terms = lower payments but more interest
- Most agreements are 24-72 months
- Consider your budget and plans
6 Choose Payment Frequency
Payment Frequency Options
Select how often you want to make payments:
- Monthly: Standard monthly payments (12 payments per year)
- Fortnightly: Every two weeks (26 payments per year)
- Weekly: Every week (52 payments per year)
Note: More frequent payments can reduce total interest and loan term.
Extra Payment (per period)
Additional amount you plan to pay each period (monthly/fortnightly/weekly).
- Can significantly reduce loan term
- Lowers total interest paid
- Builds equity faster
- Example: £50 extra per month on £20,000 finance
7 Review Your Results
Finance Summary
After clicking "Calculate Finance," you'll see:
- Dynamic Payment Label: Shows "Monthly Payment," "Fortnightly Payment," or "Weekly Payment" based on your selection
- Extra Payment Summary: Displays your extra payment amount under the main payment
- Total Interest: Total interest paid over the agreement term (calculated with row-by-row rounding)
- Total Amount Payable: Total cost including principal, interest, and fees
- Finance Breakdown: Detailed breakdown of all costs
- Payment Schedule: Complete payment schedule with all periods
Excel Export Feature
Click the "Export to Excel" button to download a professional Excel file containing:
- Summary Sheet: All finance details, FCA compliance information
- Schedule Sheet: Complete payment schedule with all periods
- FCA Compliance: UK regulatory compliance indicators
- Professional Format: Ready for lenders, accountants, or personal records
Understanding UK Car Finance Regulations
FCA Requirements
The Financial Conduct Authority regulates car finance and requires:
- Representative APR: At least 51% of customers must receive the advertised rate
- Clear Disclosure: All costs must be clearly shown
- Cooling-off Period: 14-day right to cancel
- Early Settlement: Right to pay off early with interest rebate
- Responsible Lending: Affordability checks required
Consumer Credit Act
Additional protections under the Consumer Credit Act:
- Section 75 Protection: Credit card purchases over £100
- Default Notices: Proper notice before repossession
- Interest Rate Caps: Maximum rates on certain agreements
- Complaints Process: Right to complain to Financial Ombudsman
Professional Calculator Features
Advanced Features:
- Row-by-Row Rounding: Every calculation is rounded to the nearest penny for accuracy
- Dynamic Frequency Support: Automatic adjustment for monthly, fortnightly, and weekly payments
- Schedule-Driven Totals: All totals calculated from the actual payment schedule
- Accurate End Dates: Agreement end dates calculated based on actual payment frequency
- Excel Export: Professional Excel files with summary and schedule sheets
- FCA Compliance: Full UK regulatory compliance
Tips for UK Car Finance
Before Applying for Finance:
- Check your credit score with Experian, Equifax, or TransUnion
- Compare rates from multiple lenders
- Consider the total cost, not just monthly payments
- Factor in running costs like fuel, insurance, and maintenance
- Read the finance agreement carefully before signing
- Understand your FCA consumer rights
- Use the Excel export to compare different finance scenarios
Red Flags to Watch For:
- Lenders who don't disclose APR clearly
- High documentation or arrangement fees
- Penalties for early repayment
- Pressure to sign quickly
- Unclear terms and conditions
- Hidden fees not disclosed upfront
Frequently Asked Questions
What is the difference between HP and PCP?
HP (Hire Purchase): You pay monthly instalments and own the car at the end. PCP (Personal Contract Purchase): Lower monthly payments with a balloon payment at the end if you want to own the car.
Can I pay off my car finance early?
Yes, under FCA rules you have the right to settle early. You'll receive an interest rebate for the remaining term.
What happens if I miss a payment?
Missing payments can result in late fees, damage to your credit score, and potentially repossession of your vehicle.
Is a higher deposit better?
Generally yes - a larger deposit reduces the amount you need to finance, which can mean lower monthly payments and less total interest.
What is representative APR?
Representative APR is the rate that at least 51% of customers will receive. It includes interest and fees to show the true cost of borrowing.
How accurate are the calculations?
Our calculator uses row-by-row rounding to the nearest penny, ensuring that all totals match exactly with the payment schedule. This provides the same accuracy as professional finance software.
Can I export my calculations?
Yes! Click the "Export to Excel" button to download a professional Excel file with your complete finance details and payment schedule.