208: monthly finance cost
The Peugeot 208 proves that sensible superminis can still turn heads, and its finance figures are easy on the eye too. Priced at £21,500, hire purchase with a 10% deposit of £2,150 at 9.9% APR over 48 months costs £489.84 a month, with a total amount payable of £25,662.32. Payments are fixed throughout, which keeps the household budget predictable - insurance, servicing and road tax are additional.
The 208 is a regular in UK PCP promotions, where its style helps dealers advertise tempting monthly figures. Those PCP monthlies sit below HP because part of the car's value is deferred into an optional final balloon payment. On HP at roughly £490 a month, there is no balloon and no mileage limit: 48 equal payments and the 208 is yours.
Total payable: £25,662.19 · Interest: £4,162.19
Here is a what-if few buyers run: the APR itself. These figures assume 9.9%, but the rate you are actually offered will depend on your credit status - a higher APR would push the £489.84 monthly payment up, a lower one would bring it down. That makes comparing the total amount payable, not just the monthly figure, essential when shopping quotes. A larger deposit also helps whatever the rate, by shrinking the balance interest is charged on.
HP or PCP? HP suits buyers who want the 208 as a long-term companion with no end-of-term decisions. PCP suits those tempted by lower monthlies and a fresh car every few years. Verdict: stylish and affordable in equal measure - just compare APRs carefully before signing.