Help &
Advice

You borrow the price of the car (or part of it, after any deposit) from a lender, then pay it back over a fixed term in equal monthly payments. The lender charges interest on the amount still outstanding each month. In the UK the two most common products are Hire Purchase (HP), where you own the car outright at the end, and Personal Contract Purchase (PCP), where a large final payment is deferred so your monthly cost is lower.

Under HP you split the full price (minus any deposit) across equal monthly payments and own the car at the end. Under PCP a large chunk of the car’s value, called the Guaranteed Minimum Future Value, is deferred to the end as an optional balloon payment, so your monthly payments are lower. At the end of a PCP you choose: pay the balloon and keep it, hand it back, or part-exchange for your next car.

Yes, often. Lenders look at your current circumstances as well as your history, so a steady income, a stable address and manageable existing commitments all help, even with past defaults or a CCJ. We work with sub-prime specialists as well as high-street lenders, so one weak score does not automatically mean a decline. Our eligibility check uses a soft search, so it does not affect your credit file.

None is required for most of our lenders. No-deposit car finance is available on both HP and PCP, subject to status. Putting a deposit down (even 10 percent) usually gets you a lower APR and smaller monthly payments, so if you can afford to, it is worth doing. A part-exchange counts as a deposit too.

No. Our initial eligibility check is a soft search, which is visible only to you on your credit file and leaves no footprint for other lenders to see. Only if you then decide to proceed with a full application does the chosen lender perform a hard search, and we tell you before that happens.

A reasonable rule of thumb is to keep total car costs (finance, insurance, fuel, tax, servicing) under about 15 to 20 percent of your take-home pay. Lenders will also run their own affordability check against your income and committed outgoings. Our affordability calculator takes you through this in two minutes and shows the monthly figure a lender is likely to approve.

APR (Annual Percentage Rate) is the total cost of borrowing per year, including interest and compulsory fees, calculated on the balance you still owe. Flat rate interest is charged on the full original loan for the whole term, so it looks smaller but costs more. UK regulation requires lenders to show APR, which is the number you should compare between quotes.

Yes. Under the Consumer Credit Act you have the right to settle any regulated finance agreement early. Ask your lender for a settlement figure in writing; it includes the outstanding balance less any interest rebate they’re required to apply. Settling earlier in the term usually saves you more interest, but it is worth comparing the rebate against any early settlement charges first.

Contact your lender before the payment is due if you can. A single missed payment is usually recoverable; your lender should discuss options such as a short payment holiday or a revised schedule. Repeatedly missing payments can lead to a default, which affects your credit file, and eventually to the car being repossessed. The sooner you flag the problem, the more options you have.

Voluntary termination is your right under section 99 of the Consumer Credit Act to end a regulated HP or PCP agreement once you’ve paid at least half of the total amount payable. You hand the car back in reasonable condition and walk away. If you’re not yet at the halfway mark, you can pay the difference to reach it and then terminate.

Yes. Most lenders accept self-employed applicants. You’ll usually need to show between three and twelve months of bank statements and either your most recent SA302, tax year overview or an accountant’s letter. The affordability check works the same way; it just uses declared income minus business outgoings rather than a payslip.

Personal car finance agreements are for personal use including commuting. If you’ll use the car for business journeys (sales visits, deliveries, taxi work, driving instruction), the agreement needs to be business car finance instead; your car insurance category also has to match. We arrange both.

For short trips, yes, with written permission from your lender (usually free; they’ll issue a VE103 form confirming you can take it out of the UK). Permission tends to be straightforward for Europe. Taking it outside Europe or keeping it abroad for extended periods usually requires a different arrangement.

For the eligibility check: your name, date of birth, address history for the last three years, employment status and net monthly income. If you proceed with a full application the lender may ask for photo ID (driving licence or passport), one recent payslip or SA302, and a recent bank statement. We tell you what each specific lender wants before you share it.

Our eligibility check gives you an indicative decision in about 60 seconds. A full approval from the chosen lender typically takes under two hours during working days. Once approved, funds are released direct to the dealer and you can usually collect the car within one to three working days.