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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.
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The car

£
mo

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.

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