- PCP, Contract Hire & HP
- 80 plans / 18 lenders
- All credit ratings
- Flexible purchase options
- Open 7 days per week
- 98% overall rating
Car Finance Loans
£1,000 to £50,000 for your next car, motorbike or van
Around 90% of people in the UK buy cars on finance with the majority of these using a Personal Contract Purchase (PCP) plan. While there are many ways to finance the purchase of your next vehicle (our Find Loan tool can help you identify what these are) specialist “Car Finance” is designed for the specific purpose of buying a motor vehicle. You could get this finance from the car dealer, but you have more control if you use an independent broker, like us.
Why use Car Finance?
Why might you consider this method of funding your next new or used vehicle? Perhaps you:
- have had financial issues that have damaged your credit rating
- want to reduce your monthly payments and have the option of a final payment (a balloon payment) that allows you to take ownership of the car
- are uncomfortable about negotiating with a dealer about the vehicle’s price and then its finance.
Our Trusted Partner: Zuto
- Borrow from £1000 to £50,000
- Repay over 2 to 5 years
- 80 PCP & HP deals from numerous lenders
- Bad credit plans available
- Full vehicle history checks for peace of mind.
- Dealer reputation assessed
- Optional car “stock search” available
- Free service
You can compare the different types of car finance available.
Zuto Ltd is authorised and regulated by the FCA, registration no. 452589
TYPES OF CAR FINANCE LOANS
If you are looking to replace your vehicle then specialist finance may be the solution. Explore these options and how they work. Apply to discover your loan options.
Getting Cheap Car Finance Deals
There are 3 easy steps to follow:
- Apply through our trusted partner, Zuto (details below)
- if you are aged 18 to 24 then consider Marmalade’s Young Driver car finance and insurance scheme
- Discuss your budget & get your quote(s)
- Choose your car/vehicle (in the knowledge you already have your finance)
Car Finance Loans Guide
If you’re uncertain which type of credit might suit you or you have a money problem then one of guides may help you. We summarise each type of loan and their pros and cons, and address issues regarding debt and credit ratings.
Car Finance Loan FAQs
Car Finance: things to know before you apply
Please note: this information is for guidance only. You should clarify the terms of the loan with the lender before entering into an agreement.
Under both these options the finance company owns the car while you make payments. With HP you are working towards taking final ownership of the vehicle, but with PCP you can delay this decision until the very end. These plans can suit anyone regardless of credit history.
Hire Purchase (HP)
- you’re hiring the car while you make payments
- you pay a deposit, make monthly payments and after you make the final payment you own the vehicle
Personal Contract Purchase (PCP)
- you lease the car for a fixed period (typically 2-3 years) and make regular payments. The size of your deposit will affect the monthly repayments you make.
- while leasing the car you don’t own the vehicle
- at the end of your lease contract you can:
- hand the vehicle back and no more costs are involved
- part exchange the car for a new PCP deal
- purchase the vehicle outright with one final “balloon payment” which you know in advance.
- Going over a set mileage will incur extra costs
- Some contracts include vehicle maintenance
What are the comparative costs?
You will need to get proper quotes from our partner(s) to check this, but in general PCP payments are usually lower than HP – simply because with HP you are working towards buying the car outright which is not the case with PCP (you have the option of making the final balloon payment to own the car). With HP you may also need to make a larger initial deposit than you will for PCP.
Our trusted partner has access to a large panel of lenders including those who have special plans for those with less than perfect credit. The price of finance in these circumstances will be higher but it is available. The options of personal contract purchase (PCP) or hire purchase (HP) are likely to mean your monthly payments will be lower than with a bad credit personal loan or guarantor loan.
Typically HP plans are more suitable than PCP plans for people with credit problems, but it is worth contacting our partner to find out more.
You are free to choose the dealer you buy your car from so long as they are reputable. Our partner operates a network of preferred dealers around the UK but you can go elsewhere. In some very rare cases you might be allowed to buy a car privately.
Our partner deals with lenders who can fund the entire purchase of your next car. You don’t need to worry if you can’t get a cash deposit together or don’t have a vehicle to part-exchange as your deposit.
As with most credit missing repayments or being late with them will undermine your relationship with the finance company and ultimately they could take away your vehicle. Don’t forget that under both PCP and HP plans you don’t own the vehicle during the period of making regular payments.
If this risk makes you uncomfortable then you could opt for an unsecured personal loan – with one of these you do own the car/bike/van and if you do happen to struggle to make a payment on time there may be less risk of you losing it.
But bear in mind that if you already have a poor credit rating a personal loan is likely to more expensive than specialist car finance.
Not only does our partner company specialise in finding the best finance deals for people but they also provide other benefits:
- they can help you find the actual car you need
- they can help in negotiations with the dealer
- they have their own extensive networks of reputable lenders who they deal with all the time – for extra peace of mind
If you are aged 18 to 24 you could benefit from a tailored car finance and insurance package designed to get you on the road with an affordable new car and affordable insurance. In the past you might have been tempted to buy an old car to help offset high insurance premiums.
But with Marmalade’s Young Driver scheme you get a safer new car and much lower insurance all together.
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