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Car finance: what is total amount payable?

  • What do I need to know about total amount payable?
  • How does it differ from total amount payable by customer?
  • Parkers explains car finance terms

Total amount payable is the overall amount paid to purchase a car through a finance scheme – excluding discounts.

What do I need to know about total amount payable?

This figure is displayed in PCP and Hire Purchase quotes, showing the overall figure paid to buy a car at the end of a finance scheme – excluding any contributions from the car dealer or manufacturer.

It doesn’t take into account deposit contributions or list price discounts. As a result, this may not represent how much you will pay over a finance plan – that figure is referred to as total amount payable by customer and is provided by a handful of manufacturers.

How does it differ from total amount payable by customer?

If you’re looking to establish how much you’ll pay over a Hire Purchase scheme – and if you make the optional final payment to take ownership after a PCP deal – you’ll want to look at the total amount payable by customer figure.

This should include the cost of the deposit, all monthly payments, the optional final payment and any arrangement or purchase fees – while deducting deposit contributions or discounts.

As deposit contributions can amount to more than £20,000 in some cases, this is the figure which shows how good value a finance scheme is.

The car referred to in the image above may feature a total amount payable figure of £39,270 – nearly £3,000 more than the list price – however, a £5,800 deposit contribution means that you’ll actually pay nearly £3,000 less than the list price if you buy the car at the end of the scheme.

Similar to

Total amount payable by customer

Want to find out more about car finance? Take a look at our car finance section or head to the Parkers Car Glossary for more motoring meanings