How much car can I afford?
By the PocketSorted team · Published
A car is affordable when the finance payment plus the running costs — insurance, fuel, tax and servicing — still leaves you money spare each month. Many people aim to keep total motoring costs to around 15–20% of take-home pay. On £2,000 a month take-home, that is roughly £300 to £400 a month all-in.
What does that buy?
With a 10% deposit, 9.9% APR over 48 months, plus £150 a month of running costs:
- £10,000 car: about £228 finance — £378 a month all-in
- £15,000 car: about £342 finance — £492 a month all-in
- £20,000 car: about £456 finance — £606 a month all-in
So on £2,000 a month take-home, a car around £10,000 sits inside that range; a £20,000 car would take about 30% of your pay. Your own APR and running costs will change the figures.
Which running costs should I budget for?
- Insurance — often the biggest surprise, especially for younger drivers
- Fuel or charging — from your real weekly mileage
- Road tax — check the rate for the exact model on GOV.UK
- Servicing, MOT and tyres — spread across 12 months
- Parking and tolls if you pay them regularly
Is PCP or HP cheaper?
PCP usually has lower monthly payments and a large optional final payment if you want to keep the car. Hire purchase spreads the whole price, so payments are higher but you own the car at the end. MoneyHelper compares the options.
How do I check a specific car?
Put the price, deposit, APR and term into our car affordability calculator, add your running costs and your take-home pay, and you will see the real monthly cost and what is left.
Sources
This guide is general information, not financial advice. Written by the PocketSorted team. Last reviewed 9 October 2026.
See your real numbers
Free, no sign-up, about two minutes.