When you’re in the market for a new vehicle, one of the key things to consider is how you plan to pay for it. Some people decide to save so that they can buy a new car outright, but many others choose to split the cost into regular monthly payments. Using a finance calculator is often the first step in choosing which finance option you go for, as you can work out the monthly costs and contract lengths that suit your circumstances.

There are a number of things to consider before taking out finance against your vehicle. Would you like to own the car at the end of the term? How much deposit do you have? And what are your annual mileage needs? These are all things a car finance calculator will use to help create a tailored payment plan for you.

Other things to consider when calculating your finance

Before using our calculator, it’s important that you have a clear idea of your budget and what you can afford to pay. Things that you may want to consider are:

  • Other monthly outgoings and commitments – is there room in your budget after your other bills to keep on top with the regular monthly payments?
  • Travel requirements – exceeding your mileage allowance can lead to fees at the end of your payment period, and so you should be confident that the miles you’re agreeing to take into account any holidays or unplanned trips as well as your work commute
  • Financial security – are you comfortable that you could keep up with the payments if your financial situation was to change, such as a change in salary or unexpected bill?

By keeping these things in mind, you can use our car finance calculator to generate a personalised quote that you’re happy with. Once you have a quote, you can either save this as a PDF or take the next step of getting in touch with us. Use our calculator at the top of the page to generate your own personal quote.

At MG, we offer two flexible finance packages to suit everybody. These are:

PCP finance calculator

PCP is a flexible payment plan that can be tailored to your needs. You can decide what deposit – if any – you would like to put towards your new MG, as well as how many months you would like to pay for. Once you provide your estimated annual mileage, the PCP finance calculator will then determine how much your monthly payments are going to be. All payments have fixed interest, so what you pay remains the same each month, with no surprises.

PCP finance is different to some other options as it gives you three options for what you can do at the end of your payment period. You can either:

  • Make a final payment and own the car
  • Hand the car back to MG with no further payments (as long as the mileage limit hasn’t been exceeded and there’s no damage to the car beyond reasonable wear and tear)
  • Part-exchange the car for a new vehicle

With the above options, PCP is a particularly useful finance option for people who like to change their car on a regular basis. For more information on our current PCP offers, visit our Finance Offers page.MG Finance

We know that buying a car is a significant investment, which is why we offer a variety of finance options to help you stretch your car payment and stay on top of your budget. Even if you are new to the world of car finance, the finance specialists at Perkins will help by giving you all the impartial advice you need.

The type of finance contracts that we offer include choices such as Conditional Sale (CS), Personal Contract Plans (PCP), Leasing and Contract Hire. The differences between each are significant, with one more likely to suit you than the others. For instance, it is important to keep in mind that each plan has different payment periods, as well as deposit amounts and details regarding ownership.

Browse our website to learn more about the finance plans we have available, and then get in touch to learn more about our offers and selection of new and used MG cars. We look forward to helping you purchase your next dream car.

​What is Personal Contract Purchase (PCP)?

Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.

It is similar to a Conditional Sale agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.

What makes PCP different to Conditional Sale (CS) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV).

How does PCP actually work?


When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our sales team.

We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.

At the end of your agreement you will then have three options:

Return – Simply return the car the back to us

Retain – Keep the car by paying the optional final payment

Renew – Trade it in for another car

For a quotation, help, or advice contact us and ask to speak to one of our Sales team.

What are the advantages of PCP?

  • Monthly payments on a car financed by PCP are usually lower than if your car is financed by a Conditional Sale agreement.
  • If you decide not to buy the car, you can simply walk away when you've made all the payments.
  • Similar to PCH, you can drive away a new or used car every few years (dependent on the chosen term) without worrying about selling it on.
  • If your car is worth more than the Guaranteed Future Value then you can use that equity towards a deposit on a new car. 

What should you consider when opting for a PCP?

  • If you want to buy the car you will need to pay your final balloon payment (the Guaranteed Future Value).
  • Similar to PCH, you will need to agree on a mileage allowance at the beginning of your contract and there may be excess mileage charges if you exceed this.
  • You won’t be able to sell the car without settling the finance.
  • You won’t own the car until you have made all of your repayments.
  • You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.

Can I settle my PCP agreement early?


You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your car is worth, and what you still owe and there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your car is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next car.

What is Conditional Sale (CS)?

Conditional Sale is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Conditional Sale agreement ends, and you own the car outright.

What are the advantages of CS?

  • You’ll be able to drive away a car that you may not have managed to buy outright.
  • Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your Conditional Sale agreement, so you'll avoid excess mileage charges.
  • Once you’ve made your final monthly payment, including the option to purchase fee, you'll have full ownership of the car.

What should you consider when opting for CS?

  • Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the car.
  • You won’t be able to sell the car without settling the finance.
  • You won’t own the car until you have made all of your repayments.
  • You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.

Can I settle my CS agreement early?


The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.

For a Conditional Sale agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the car early.

Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the car back or you have a second option. Through a PCP agreement, you can take full ownership of the car by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.

Free & Fast Free Valuation When selling or part-exchanging, it is essential to know what your vehicle is worth in order to get the best price.