True Cost of Car Finance
Christian Finance Academy · Module 7 · An illustration, not advice ·
What that car really costs you
The lowest monthly payment is rarely the lowest true cost. This compares the five ways to fund a car — PCP, Hire Purchase, leasing, a personal loan, and cash — on what you actually pay and, crucially, what you own at the end. Then it shows the difference over a lifetime between financing a new car forever and buying one and keeping it.
"The plans of the diligent lead to profit as surely as haste leads to poverty."
Proverbs 21:5
This is an illustration, not financial advice or a personal recommendation. It models the figures you enter to compare funding routes — it does not tell you which to choose, and the right answer depends on your circumstances, credit profile and priorities. Monthly payments use a standard reducing-balance calculation from the APR you enter; real quotes depend on the lender's exact terms, fees and your credit. PCP figures assume the car is handed back at the end (the most common outcome), so "own nothing" reflects that choice — buying the balloon to keep the car costs the value-at-end figure on top. Lease (PCH) figures are an estimate unless you enter your own quote; mileage and condition charges are not modelled. Resale and future values are estimates and will vary. Always check the full agreement, total amount payable and APR before signing. Christian Finance Academy · Module 7: Credit & Debt · Topic 6.