PCP vs Buying Outright Calculator
Wondering whether PCP finance is worth it compared to paying cash? This calculator shows the total cost of PCP if you keep the car versus buying outright, so you can see exactly how much extra the financing costs.
Frequently asked questions
Is it better to buy a car outright or use PCP?
Buying outright is always cheaper in total because you avoid paying interest. However, PCP lets you keep your savings invested, maintain cash reserves, and change cars more easily. If the PCP APR is low (e.g. 0% manufacturer offers), financing is effectively free.
What happens to my cash if I buy outright?
You lose the opportunity to earn interest or returns on that money. If your savings or investments earn more than the PCP APR, keeping cash invested and using PCP can actually be the better financial decision overall.
Can I hand the car back if I buy outright?
No — when you buy outright, you own the car and bear all depreciation risk. With PCP, you can hand the car back at the end of the agreement with nothing more to pay (subject to mileage and condition limits).
Do dealers prefer cash or PCP customers?
Many dealers prefer PCP customers because they earn commission from the finance provider. Cash buyers do not always get better deals. Always negotiate the vehicle price first, then discuss how you will pay.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.