What should I enter for "total debt/interest paid"?

Enter the total interest charge from your original finance agreement — the difference between what you borrowed and the total amount repaid. If you paid cash, leave this field at zero.

Should the deposit include my trade-in value?

Yes. If you're putting £18,000 trade-in and £7,000 cash as a deposit, enter £25,000 as the deposit. The calculator uses this to work out the finance balance.

Why does the new machine show a lower annual cost than expected?

The interest charge is spread over the full working lifespan, not just the loan period. A machine you run for 10 years carries a lower annual finance burden than one you trade in after 5 — even with the same loan.

What if the new machine has lower repair costs?

Enter realistic lower service costs for the new machine. This is often the strongest argument for changing — modern machines can halve maintenance spend in early years.

When does it make financial sense to change machinery?

The numbers most commonly support changing when: repair costs have risen sharply and offset the depreciation saving; the new machine will be used for substantially more hours, spreading capital cost more efficiently; or when an unexpectedly high trade-in value is available now that will fall further.

How do I calculate depreciation on plant and vehicles?

This calculator uses straight-line depreciation: (purchase price − future trade-in value) ÷ working lifespan in years. This gives a flat annual depreciation figure that can be directly compared between machines. Note this is economic depreciation for decision-making — it differs from writing-down allowances used for tax purposes.

What APR should I expect on plant/fleet finance in the UK in 2026?

UK plant and commercial vehicle finance in 2026 typically ranges from 5.9% to 9.9% APR for hire purchase or conditional sale agreements. Always compare the total charge for credit — not just the monthly payment — when evaluating finance offers.