Corsa: monthly finance cost
The Vauxhall Corsa is Britain's classic first car on finance, and its numbers explain why so many young drivers start here. Priced at £19,000, hire purchase with a 10% deposit of £1,900 at 9.9% APR over 48 months costs £432.88 a month, with a total amount payable of £22,678.24. Fixed monthly payments make it easy to budget around wages or an apprenticeship - remembering that insurance for younger drivers can rival the finance payment itself.
The Corsa is also a PCP staple in the UK, with dealers competing hard on monthly quotes. PCP usually undercuts HP month to month because a final balloon payment is held back, giving you the choice at the end to pay it, return the car or part-exchange it. On HP at roughly £433 a month, the deal is simpler: you are buying the car outright, with no mileage limits to monitor.
Total payable: £23,865.73 · Interest: £3,870.73
Because the Corsa's price is modest, small changes have a visible effect. Stretching the term to 60 months would trim the £432.88 monthly payment further, which can help first-time buyers - though an extra year of interest increases the total paid. A slightly larger deposit is often the smarter move: even an extra £1,000 borrowed less means lower payments and less interest.
HP versus PCP for a first car? HP's appeal is simplicity: no mileage caps for new drivers still discovering how much they drive, and ownership at the end. PCP's lower monthlies and built-in upgrade path suit those already eyeing their second car. Verdict: one of the most accessible routes onto UK roads - with the usual caveat that the APR you are offered depends on your credit status.