Cars & Motoring2 min check

PCP vs Lease vs Cash Calculator

Compare the total cost over the same period for PCP, personal leasing and outright cash purchase.

Short answer

PCP = deposit + monthly + optional final balloon to own. Lease = deposit + monthly, hand back at end (no ownership). PCP suits people who might want to keep the car; lease wins for predictable cost and frequent upgrades. Lease is usually 10–15% cheaper monthly.

Step 1 of 20%

Calculation method, coverage and version

Inputs used: On-the-road price, Period (months), PCP / lease deposit, PCP monthly payment, PCP final balloon (GFV), Lease monthly payment, Estimated resale value (cash route).
Calculation approach: The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage: Cars & Motoring. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version: No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.

Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

How it works

We total deposit + monthly payments × term for both. PCP includes a Guaranteed Future Value (GFV) you can pay to keep the car, refinance or hand back. Lease has no buyback — you simply return it.

Worked example

£30k EV: PCP £4k deposit + £350/m × 36 + £18k optional balloon = £16,600 spent (£34,600 if buying). Lease £4k + £305/m × 36 = £14,980 — and you walk away.

Who should use this

•Drivers choosing between finance options
•Company-car-eligible employees
•People who upgrade every 3 years

Common mistakes

×Going over annual mileage limit (charged 8–14p/mile excess)
×Over-spec'ing a lease — every option adds to monthly cost
×Damaging a leased car beyond fair wear & tear (BVRLA guide)
×Treating PCP balloon as 'buy price' — usually higher than market value

Frequently asked questions

Is leasing wasted money?▾

No more than renting. You pay for the depreciation, just like buying — but with predictable cost and warranty cover.

Can I exit early?▾

Voluntary termination on PCP at 50% paid; lease early termination usually means most remaining payments.

Should I buy outright?▾

Cheapest long-term if you keep cars 6+ years. Worst if you want to change every 2–3 years.

Related calculators

Depreciation →Running Costs →Personal Loan →Car Finance APR →