Many UK competitions for cars, watches and other big prizes offer the winner a choice: the prize itself, or a fixed sum of money instead. That sum is the cash alternative. It is nearly always lower than the headline value, and that is exactly what makes it useful when you are comparing draws.
What a cash alternative is
A cash alternative is an amount the operator commits to pay the winner in place of the prize. It is set before the draw opens, and it should be stated on the competition page, in the prize description or in the competition terms. If you cannot find a figure anywhere, do not assume one is on offer: some draws are prize only, and some operators decide the amount after the draw, which leaves you with nothing to compare.
Read the wording carefully. "Cash alternative of £25,000" is a fixed sum. "Cash alternative available" without a figure, or "up to £25,000", is not.
Why it is lower than the prize value
The headline value is usually the retail or list price: what you would pay walking into a shop or a dealership. The cash alternative reflects what the prize is worth to the operator, and there are a few reasons the two differ:
- Trade prices. Operators often buy prizes below retail, through dealer or trade discounts. The cash figure tends to sit nearer to what they would actually spend.
- Resale value. If the operator already owns the prize, paying cash means selling it, and a second-hand sale rarely recovers the full retail price.
- Costs they avoid. Delivery, registration and handling are paid on the prize but not on the cash.
A cash figure well below the headline value is not a trick in itself. A gap that seems unusually wide, or a headline value you cannot match to any real price for the item, is worth checking before you rely on it.
Cars
Car prizes carry the most small print. Look for:
- On-the-road price. Whether the advertised value includes the first registration fee, first-year road tax and number plates, or is the list price before those.
- Delivery. Whether the car is delivered free to your door, to anywhere in mainland UK, or must be collected.
- Insurance and running costs. These are yours from the day you take the car, and on a high-performance model they can be substantial. Some operators ask for proof of insurance before handing over the keys.
- "Or similar". Terms often allow a different colour, specification or an equivalent model if the exact car is not available.
Watches
For a watch, check whether it is new or pre-owned, and whether it comes with its original box and papers, which affect what it is worth if you sell it. Headline values for popular models are sometimes taken from grey-market or second-hand prices, which can sit above the manufacturer's retail price when a model is in short supply. Those prices move, so the value on the day you win may not be the value on the poster.
Tech, holidays and other prizes
Electronics lose value quickly, so the cash alternative on a phone or games console is often close to what you could sell it for anyway. Holidays usually come with fixed dates, a named destination and limits on who can travel; the cash figure may be the only way to get value from one if those do not suit you. Read what is and is not included, such as flights, transfers and spending money.
Taking the prize or the cash
If you would buy the prize yourself, the prize is usually worth more to you than the cash. If you would sell it, compare the cash alternative with what the item would really fetch second-hand, after any selling fees, and remember the costs that come with some prizes, such as insurance on a car. When the two figures are close, the cash is simpler and arrives without delivery or paperwork.
Check the terms for when the cash is paid. Most operators pay after their winner checks, such as age and identity, are complete, and many state a number of days for it. Our guide to what happens when you win covers those checks, and tax on competition winnings covers what happens once the money is yours.
Using the cash alternative to compare draws
Because headline values are calculated in different ways, two "£40,000" cars can be very different prizes. The cash alternative is a figure the operator has committed to pay, so it is usually the fairer basis for a comparison. Here is an invented example:
| Example only | Draw A | Draw B |
|---|---|---|
| Headline prize value | £45,000 | £40,000 |
| Cash alternative | £30,000 | £36,000 |
| Ticket price | £1.99 | £2.49 |
| Ticket cap | 25,000 | 20,000 |
| Cash alternative per £1 at sell-out | £30,000 ÷ £49,750, about 0.60 | £36,000 ÷ £49,800, about 0.72 |
| Odds per ticket at sell-out | 1 in 25,000 | 1 in 20,000 |
On headline value, Draw A looks bigger. On the cash alternative, Draw B offers more for every pound in the draw and shorter odds as well. The expected value calculator runs this comparison for any draw, and competition odds explained shows the sums behind it.
Our big prize competitions page lists live draws with a stated cash alternative of £10,000 or more, so every draw on it has a figure you can compare.
Quick answers
What is a cash alternative in a competition?
A fixed sum the operator will pay the winner instead of the prize. It is set in advance and should be stated on the competition page or in the terms.
Why is the cash alternative lower than the prize value?
The headline value is usually a retail or list price, while the cash alternative reflects what the operator would actually pay or recover for the item. The gap is often wider on cars and watches.
Should I take the prize or the cash?
It depends on whether you would buy the prize yourself. If you would sell it, compare the cash alternative with what the item would really fetch second-hand after fees, insurance and delivery.