PCP vs HP car finance in 2026 explained: how each works, the balloon payment, who ends up owning the car, total cost over the term, and which suits your situation.
How company car tax works in 2026/27: the 4% electric BIK rate vs 25–37% for petrol, worked take-home comparisons, P11D values, and why EVs still win on tax.
EV salary sacrifice in 2026/27 cuts the cost of a lease by 30-50% through income tax and NI relief, with BIK at just 4%. Full worked examples on £40k and £60k salaries.
How EV salary sacrifice works in 2026/27: the OpRA exemption for ultra-low-emission cars, 4% Benefit-in-Kind, the National Insurance and income tax saving, and a full worked example for basic and higher-rate employees.
Car allowance vs company car UK 2026: worked tax examples for cash, petrol, and EV options. BiK rates, AMAP rules, and when the allowance wins after tax.
True EV running costs 2026: home vs public charging, VED £425 supplement, insurance premium, 5-year total cost of ownership vs petrol, and smart tariff savings.
Step-by-step guide to PCP, HP, personal loan and leasing car finance. Real total cost comparison on a £22,000 car with APR, balloon payment and insurance group explained.
An electric company car had just 2% Benefit in Kind (BIK) rate in 2022–2024. It rises to 3% in 2025/26 and 4% in 2026/27 — still dramatically lower than 20-30% for petrol cars. On a £50,000 EV, a 40% taxpayer pays just £600/year in tax.
Fuel duty has been frozen at 52.95p per litre since March 2022 — and the Spring Statement 2026 extended that freeze again. But duty is only part of what you pay at the pump. Here's the full breakdown of what makes up petrol and diesel prices in 2025/26.
Car insurance groups run from 1 (cheapest to insure) to 50 (most expensive). A group 1 car can save a young driver £1,500–£3,000 per year compared to a group 30 vehicle. Here are the best group 1 and low-group cars available in the UK in 2026.
UK cars are quoted in MPG using the Imperial gallon (4.546 litres). EU cars use L/100km. The conversion is not obvious — and using US MPG figures by mistake makes every car look worse than it is. Here's the correct formula and a full conversion table.
PCP has the lowest monthly payment but the highest total cost if you keep the car. HP costs more per month but you own the car at the end. A personal loan (if you qualify for a good rate) often has the lowest total cost of all three.
