New vs used: compare the whole cost

A purchase price is only one part of the comparison.

Use one time period and the same mileage

A three-year quote and a five-year ownership estimate answer different questions. Start with a common period, then allow for another car if a return agreement ends before that period does. Our calculator lets you enter two consecutive car periods per option.

What leaves your account versus what you consume

Imagine a cash purchase at £20,000, £8,000 in running costs and a £10,000 estimated value after four years. Gross cash paid is £28,000. Estimated cost after allowing for the remaining car value is £18,000, or £375 a month. That monthly average is not an instalment and does not mean the purchase is affordable.

Resale value is uncertain

Depreciation is the difference between purchase price and resale value. It varies by vehicle, condition, mileage and market. Do not treat a modelled resale value as a quote. Test a lower value as well as your central estimate. With finance, our model uses actual payments plus settlement or final payments, then subtracts the car value; it does not add depreciation again.

Running costs need their own lines

Insurance, tax, maintenance and repairs can change the result. Use quotes where available. Do not add servicing twice if it is included in a lease or maintenance package. A warranty can cost money and still leave some repairs uncovered.

There is no universal winner

Reliability, safety, access needs, cash reserves and contract restrictions are not captured by a single cost figure. The calculator shows the arithmetic for your assumptions, without scoring suitability.

UK context · checked 30 October 2026. Sources: MoneyHelper: PCP explained; MoneyHelper: buying a car. Contract terms vary; these are general explanations.