Net Ownership Cost
True Cost of
Car Finance
Interest-only finance — real monthly cost across every depreciation and appreciation scenario
£60,000
Exact:
9.9 % per year
🏠 4.8%
🏎 9.9%
Exact:
25 % of price
Exact:
48 months
Exact:
Depreciation fund
Set aside a monthly amount so the shortfall at sale doesn't touch your deposit
Deposit (cash)
£15,000
Amount financed
£45,000
Monthly interest
£225
Total interest
£10,800
−10 % max drop
+10 % max gain
| Scenario | Value at end | Gain / loss | Shortfall | Total cost | Eff. monthly cost |
|---|
Appreciation — car gains value
Depreciation — car loses value
Break-even / flat value
How it works: Effective monthly cost = (total interest + depreciation loss + any loan shortfall − capital gain) ÷ term. If the car appreciates enough to exceed the interest paid, the effective monthly cost goes negative — meaning the car made you money. Deposit is returned at sale and is not counted as a cost.