Car finance should be compared as a whole—not reduced to one monthly payment.
How Should I Buy My Car helps UK drivers compare cash, personal loan, hire purchase, PCP and leasing over the same period.
Why we built it
Most car-finance conversations start with a monthly payment. That number matters, but it does not tell you how much cash is required today, how much interest you pay, whether a large final payment is waiting at the end or whether you own anything when the agreement finishes.
This tool brings those questions together. It separates money paid from estimated financial cost, shows when payments occur and explains the trade-off behind the recommendation.
What the calculator does
- Compares the same car across cash, loan, HP, PCP keeping or returning the car, and leasing.
- Uses your price, expected future car value, payment limits and finance assumptions.
- Separates PCP ownership from returning the car under its guaranteed future value, including expected return charges.
- Includes estimated finance and unpaid final fees when an agreement continues beyond your comparison period.
- Shows the cheapest overall method separately from the best method within limits you mark as firm.
What it does not do
The default figures are examples, not quotations. The optional savings-return comparison uses an assumption supplied by you. We do not provide vehicle valuations, finance offers, credit decisions or personalised financial advice. Illustrative rates are starting points only. Before making a commitment, replace them with a written quotation and check the lender’s total amount payable, fees, early-settlement rules and return conditions.
How the comparison is calculated
Each method is assessed over the same period. The calculator adds upfront payments, monthly payments, fees and any final payment. For methods where you keep the car, it then deducts the expected value of the car and includes estimated finance or final fees still outstanding at the end of the comparison period.
The rating also reflects the payment limits and ownership preference you enter. It is a comparison score—not an affordability assessment, credit decision or promise that finance will be available.
Who maintains this comparison?
This is an independent educational project. Calculations run in your browser using the assumptions you enter. The calculation rules, priority weights and component scores are shown alongside the results so you can challenge them. We review the copy and reference cases when the model changes; the current methodology is version 1.3, reviewed September 2026. Corrections are welcome at the address below.
Editorial and review approach
We separate explanatory content from calculator assumptions, show the date of review, and link to independent sources where they help users verify product mechanics. UK background sources include MoneyHelper and the Financial Conduct Authority. The figures in worked examples are labelled as illustrative and are recalculated independently before publication.
We do not accept payment to rank one payment method above another. The calculator’s recommendation is generated from the figures and preferences entered, using weights shown on the results page.
Sources worth checking
Contact
Questions, corrections or feedback can be sent to contact@howshouldibuymycar.com.
Our principle
A lower monthly payment is not automatically a better deal. The right comparison is: what do I pay, when do I pay it, what do I owe and what do I own at the end?
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