Helping you Budget

What to take into account when budgeting for a new car on finance.

Identifying what you can afford

If you’re buying a new car on finance there are a lot of factors to consider. Knowing what you can afford is crucial, and that can be a complicated picture when there are so many finance products available to you. 

Should you go for Personal Contract Hire (PCH)? Hire Purchase (HP)? Or might a Personal Contract Purchase (PCP) agreement be right for you?

You’ll need to do your research, and you’ll definitely need to work out your budget.

Things to consider

  • How much you can afford to pay each month
  • How much will you put down as a deposit
  • How many miles will you drive per year
  • How long do you want to keep your car
  • Do you want to own the car, or at least have the option to own it?


All of these elements help set the monthly price of a vehicle on finance, so it's important to give them some thought upfront.

Additional costs to consider

If you have all these details to hand you’ll be able to make the best decision on which finance product to select to suit your needs

But, when you’re budgeting for a new car, the finance plan you choose is just one part of what you need to consider. It only tells you the cost of owning the car. What about running it?

Over the course of a year with your new car you’ll be paying for fuel and insurance, for car tax, and for servicing and maintenance. Some of this might form part of your finance agreement depending on which product you take out; either way they’ll affect what you can and can’t afford when you choose your new car.

It’s also useful to know how much your car’s value can be expected to depreciate over the course of a year, or the duration of your finance agreement.

Finally it is also worth considering how much disposable income you have 

Want more detail on the products?

We have pulled together all the information, videos, and tools you need to make an informed decision about the right finance product for you.

Want to talk to someone?

Our local retailers are there to answer any questions and give you expert advice on all our products.