In this brief blog, we are going to answer the question “What car can I afford in the Uk”.

What car can I afford in the UK?

When looking at what car you can afford in the UK you can either look at paying for the car upfront, financing the car or leasing it.

We can also look at what car you can afford in regards to new cars and used cars in the UK.

Paying for the New car upfront

If you are paying for the car upfront then, of course, your choice will be limited to the cars you can afford in the UK as you will have to ut a huge amount down to purchase the car.

What new cars can you afford in the UK?

Renault

Kadjar

RRP

£20,560 – £28,500

Peugeot

208 (2012-2019)

RRP

£13,645 – £19,509

Mercedes

E-Class Saloon

RRP

£38,150 – £60,180

Renault

Clio (2012-2019)

RRP

£13,620 – £19,170

Mercedes

A-Class

RRP

£23,160 – £35,590

Fiat

500

RRP

£12,165 – £17,015

Volvo

V40

RRP

£22,515 – £29,825

Volkswagen

Tiguan

RRP

£24,570 – £41,555

Mercedes

GLC SUV

RRP

£39,820 – £55,200

Financing a New car upfront

Financing a new car can either be with a  personal contract purchase (PCP) or a hire purchase.

A personal contract purchase is when you pay a down payment and then take out a loan on the rest of the car. The loan is secured on the car. The personal contract purchase loan works by charging you for the depreciation of the car over the loan term as well as interest.

You will then have an option at the end of the loan term to pay one final balloon payment or return the car to the dealer. You may incur other costs if you go over your agreed mileage or if you haven’t properly maintained the car.

A hire purchase, on the other hand, is just a long term lease of a car, after which you will have to return the car. More often the hire purchase is the more expensive option out of the two but this depends heavily on how you structure your initial deposit on the hire purchase agreement.

If you are taking out a personal contract purchase agreement or a hire purchase agreement then  you will find that the cards you can afford in the UK will increase as you simply have to make a monthly payment and or a one-off initial deposit.

What new cars can you afford in the UK with a personal contract purchase or a lease?

These are the cars you can afford in the UK for under £150 a month

Sandero Hatchback

Aygo Hatchback

Hyundai i10 Hatchback

Fiat Panda Hatchback

These are the cars you can afford in the UK for under £150 to £250 a month

Ignis Hatchback

Logan estate

Picanto Hatchback

Fabio Hatchback

To see what cars you can afford in the UK, you should use a car affordability calculator or search on Autotrader based on your budget.

In this brief blog, we discussed the question  “what car can I afford in the UK”. If you have any questions or comments please let us know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.


John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.