Net Ownership Cost

True Cost of
Car Finance

Interest-only finance — real monthly cost across every depreciation and appreciation scenario

£60,000
£5k£125k£250k£375k£500k
Exact:
6 % per year
1%7%13%19%25%
Exact:
25 % of price
0%20%40%60%75%
Exact:
48 months
6mo30mo60mo90mo120mo
Exact:
Deposit (cash)
£15,000
Amount financed
£45,000
Monthly interest
£225
Total interest
£10,800
−50 % max drop
5%30%55%80%100%
+100 % max gain
5%55%105%155%200%
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.