--- title: "PCP vs Car Loan vs Cash Calculator Ireland 2026: True Cost Compared" url: https://decisionscalc.com/tools/ireland-pcp-vs-car-loan-calculator/ description: "PCP or a credit union or bank car loan, or pay cash? Irish calculator with the monthly payment, cost of credit, the GMFV, the half rule, excess mileage, equity and the savings interest you lose after DIRT." publisher: DecisionsCalc note: General information, not financial, tax or legal advice. Figures name their source and the date they were read. --- [IE · figures checked 10 Nov 2026](https://decisionscalc.com/methodology/) Car finance · Ireland # PCP vs car loan vs cash: Ireland calculator 2026 PCP or car loan in Ireland? A PCP has lower monthly payments because most of the price is deferred to the GMFV, and you don’t own the car unless you pay it. A credit union or bank loan costs more a month, but you own the car from day one. Example (our assumptions): a **€35,000** car with €7,000 down. A 36-month PCP at 5.9% APR with a €15,000 GMFV is **€465.82** a month; a 5-year loan at 8% APR is **€564.01**. Over the 3 years, after the car’s €15,000 value at the end, paying cash costs **€21,782** (including €1,782 of savings interest lost after DIRT), the PCP **€24,537** and the loan **€25,664**. **Sources, read 10 November 2026:** the CCPC on [Personal Contract Plans](https://www.ccpc.ie/manage-your-money/borrowing-money/car-loans-and-car-finance/personal-contract-plan) (deposit, balloon payment, the three choices at the end, mileage and wear-and-tear penalties, the half rule), [paying for your car](https://www.ccpc.ie/manage-your-money/borrowing-money/car-loans-and-car-finance/paying-for-your-car) (GMFV; with a personal loan you own the car from the day you buy it; saving up is the cheapest way) and [hire purchase](https://www.ccpc.ie/manage-your-money/borrowing-money/car-loans-and-car-finance/hire-purchase) (the finance company owns the car until the last payment; no selling without its permission) and [problems making car repayments](https://www.ccpc.ie/manage-your-money/managing-debt/problems-making-car-repayments) (paying up to the halfway point; voluntary surrender); Citizens Information on [hire purchase agreements](https://www.citizensinformation.ie/en/money-and-tax/personal-finance/loans-and-credit/hire-purchase/) (PCPs are a type of hire purchase; the half rule) and [credit unions](https://www.citizensinformation.ie/en/money-and-tax/personal-finance/banking/credit-unions/); Revenue on [DIRT](https://www.revenue.ie/en/additional-incomes/dirt/what-dirt-rate-is-applicable.aspx) (33%); the APR definition in the EU [Consumer Credit Directive 2008/48/EC, Annex I](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32008L0048). Compare real lenders’ rates with the [CCPC loan calculator](https://www.ccpc.ie/manage-your-money/borrowing-money/loan-calculator). The default APRs, GMFV, mileage charge, savings rate and end value are our assumptions, not typical rates: use your own quotes. General information, not financial advice. ## Each route, in detail | Route | Monthly | Total paid | Cost of credit | Savings interest lost | Car at the end | Net cost | | --- | --- | --- | --- | --- | --- | --- | | Pay cashYou own the car from day one. | – | €35,000 | €0 | €1,782 | €15,000 | €21,782 | | Car loan (credit union or bank)You own the car from day one; €12,506 of the loan is still owed at month 36 (counted here as if cleared). | €564.01 | €39,810 | €4,810 | €854 | €15,000 | €25,664 | | PCP, then pay the GMFVYou own the car once the GMFV is paid. | €465.82 | €38,770 | €3,770 | €768 | €15,000 | €24,537 | | PCP, then hand it backNothing: the car goes back. | €465.82 | €23,770 | €3,770 | €768 | €0 | €24,537 | PCP total amount payable (deposit + payments + GMFV)€38,770 Half rule: half the total payable€19,385, reached after month 27 Equity at the end (car value − GMFV)€0 Excess-km charge if handed back€0 Loan: interest over the full term€5,840 Loan still owed at month 36€12,506 "Net cost" is everything a route pays out by the end of the PCP term (the deposit, monthly payments, the GMFV or the loan balance still owed, any excess-km charge), plus the interest that money would have earned in savings after 33% DIRT, minus what the car you hold is worth then. Lower is better. Handing the car back leaves you with nothing; paying the GMFV or trading in keeps the car or its equity. Trading in works out like paying the GMFV and selling the car for its value. Fees, insurance, servicing and motor tax are the same in every route and are left out. ## The finance is only part of the cost Depreciation, insurance, fuel and servicing usually cost more than the interest. See the whole picture with the [car true cost of ownership calculator](https://decisionscalc.com/tools/car-ownership-calculator/), or read [what a car costs to own in Ireland and five other countries](https://decisionscalc.com/articles/car-ownership-cost-by-country/). [Car true cost calculator](https://decisionscalc.com/tools/car-ownership-calculator/) ## How it is worked out 1. **APR to a monthly rate:** the APR is an effective annual rate under the EU Consumer Credit Directive, so the monthly rate is (1 + APR)1/12 − 1. For 8% APR that is 0.643% a month, not 8% ÷ 12 = 0.667%. Any fees are not included, so enter the APR from the quote. 2. **PCP payment:** the amount financed (price less deposit) is repaid in level monthly payments that leave exactly the GMFV owed at the end: payment = (P − GMFV ÷ (1 + i)n) × i ÷ (1 − (1 + i)−n). The cost of credit is all payments plus the GMFV, less the amount financed. 3. **Loan:** standard monthly repayments over its own term. If it runs longer than the PCP, the balance still owed at the end of the PCP term is counted, as if you cleared it then, so every route is compared on the same date. 4. **Cash and savings interest:** every euro paid out, in any route, stops earning your savings rate less 33% DIRT until the end of the PCP term. For cash that is the whole price on day one. 5. **End of the term:** owning routes keep a car worth your end value. Handing back keeps nothing, and pays the excess-km charge if you drove over the allowance. With a higher mileage the car is worth less, so lower the end value too. ## Not just money - **Ownership:** with a loan or cash the car is yours. With a PCP (a type of hire purchase), the finance company owns it until the final payment, and you cannot sell it without its permission. - **Flexibility:** a PCP protects you if the car is worth less than the GMFV, because you can hand it back. A loan leaves that risk with you. - **Conditions:** PCPs come with mileage limits, wear-and-tear rules and servicing requirements. A loan has none. - **Half rule:** once you have paid half the total amount payable you can hand the car back with nothing more to pay (Consumer Credit Act 1995). Don’t sign a voluntary surrender form instead: the CCPC says voluntary surrender means you give the car back but still owe the full debt. - **Credit union loans:** credit unions can lend for a car purchase, and may ask for security depending on their own rules (Citizens Information). Ask whether yours charges for paying early. ## Frequently asked questions **Is a PCP or a car loan cheaper in Ireland?** It depends on the two APRs, the GMFV and what the car is worth at the end. On a €35,000 car with €7,000 down, a 36-month PCP at 5.9% APR with a €15,000 GMFV costs €465.82 a month and €3,770 in credit if you pay the GMFV to keep the car. A 5-year loan at 8% APR costs €564.01 a month and €5,840 of interest over the five years. Over the 3 years, after the car’s value at the end, the PCP costs €24,537 and the loan €25,664, because the PCP rate is lower here. With 8% APR on both, the loan comes out cheaper (€25,664 against €25,879), because you pay the balance down faster and pay interest on less. The CCPC’s advice is to compare the total cost of each option, including interest and fees. **What is the GMFV on a PCP?** The Guaranteed Minimum Future Value is the final lump sum (also called the balloon payment) set at the start of a PCP. You pay it if you want to own the car at the end; if you don’t, you can hand the car back instead. Because so much of the price is deferred to the GMFV, PCP monthly payments are lower than a loan’s, but you pay interest on the deferred amount for the whole term. If the car is worth more than the GMFV at the end, the difference is equity you can use as a deposit on another car; handing the car back forfeits it. **Can I hand back a PCP car once I’ve paid half?** Yes. Under the half rule, a legal right under the Consumer Credit Act 1995, you can return the car once you have paid at least half of the total amount payable under the agreement, and you do not need to be in financial difficulty to use it (CCPC). If you have paid less than half, you can still return it but owe the difference up to half. Charges for damage or excess wear can still apply. In the example the total payable is €38,770, so half is €19,385: with the deposit counted, you reach it after month 27 of 36. Check the figure on your own agreement. **What happens if I go over the mileage limit on a PCP?** PCPs have mileage limits and rules about the car’s condition and servicing. Going over can mean penalties if you hand the car back, or less equity towards your next deposit (CCPC). The charge per kilometre is set in your agreement. In the example, driving 20,000 km a year on a 15,000 km allowance at 10 cent a kilometre would cost €1,500 over 3 years if you hand the car back. **Is it better to pay cash or finance a car?** The CCPC says saving up is the cheapest way to pay for a car because you pay no interest. The real cost of cash is the interest your savings stop earning, after 33% DIRT. In the example, taking €35,000 out of savings at 2.5% gives up about €1,782 after DIRT over 3 years, against €3,770 of credit on the PCP. On these terms, finance only wins on cost when its APR is below what your savings earn after DIRT, as with a 0% offer. Many people still keep some cash back for emergencies. **Can I sell a car on PCP?** Not until it is paid off, unless the finance company agrees. PCPs are a type of hire purchase agreement (Citizens Information), and with hire purchase the finance company is the legal owner until the final payment: you cannot sell the car without its permission (CCPC). With a credit union or bank loan you own the car from the day you buy it, so you can sell it whenever you like and clear the loan. **Example with equity:** if the same car is worth €18,000 at the end, against a €15,000 GMFV, paying the GMFV or trading in costs €21,537 net, while handing it back still costs €24,537: the €3,000 of equity stays with the finance company. ## Related - [Car true cost of ownership](https://decisionscalc.com/tools/car-ownership-calculator/): depreciation, insurance, fuel and servicing year by year. - [Where should my money go?](https://decisionscalc.com/tools/ireland-savings-investment-calculator/) What your savings earn after DIRT, against State Savings, ETFs and a pension. - [Debt payoff calculator](https://decisionscalc.com/tools/debt-payoff-calculator/) · [True cost of car ownership](https://decisionscalc.com/articles/car-true-cost-of-ownership/) · [Car ownership costs by country](https://decisionscalc.com/articles/car-ownership-cost-by-country/) - Run an Irish money or motoring site? 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