Estimating a loan deposit based on the monthly payment

SocMinarch

I've noticed on most car websites that you can get a loan estimate by entering a deposit and a term, and the company will give you an estimate of monthly costs. Some manufacturers like BMW will also let you input a monthly payment and term, and give you the deposit required to achieve that monthly payment.


My maths is not very good, so how could I go about working out what deposit I'd need on a loan if I already have a target monthly payment and a term?

DrEskimo

If it's just a straight HP loan, then you can use this calculator:

https://www.moneysupermarket.com/loans/calculator/

You want to switch to 'What can I afford' and then just stipulate monthly budget, term and APR.

If it's a PCP loan then you need to know the final payment, but can use this calculator:

http://www.pcpcal.co.uk

SocMinarch

Should probably have added that this is for a PCP

DrEskimo

Then you need to know what the finance company are going to value the car at, which will change depending on the term and mileage.

But that PCP calculator should give you a rough idea.

My advice though...avoid PCP. Unless it's a very low APR rate, it will be the most expensive form of finance.