Our partner Zuto works with a wide range of lenders and has access to over 300 finance products to see what will be the most suitable option for you.
Tell us how you'd like to finance your car, the size of your deposit and the price of the car and we'll calculate your costs in seconds.
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Choose PCP and you'll pay an initial deposit and monthly payments to cover the remaining value of the car, plus interest. At the end of the term, you can buy the car or walk away.
At the end of your PCP, you will have the option to keep the car if you pay lump sum. We've estimated this to be taking your total cost to .
Find car finance loanChoose HP and you'll make monthly payments and usually pay a deposit. At the end of the contract term, you'll own the car.
'Car finance' is a general term that encompasses the many options available to you if you're looking to borrow money to fund the purchase of a new or used car.
The term also covers the options on offer if you'd like to lease a car for a set period.
As the loanee, you'll be responsible for repaying the money you've borrowed in instalments. That means you can spread the cost of your car over several years.
Common methods of financing a car include leasing, personal contract purchase, hire purchase, and car loans.
Agree on contract length and conditions: You’ll have to agree on how long you want to pay for the car. You’ll also agree to certain conditions, such as annual mileage where relevant
Borrow money: You’ll borrow money from the lender to cover the cost of the car. You will pay an initial deposit to begin with and then make regular payments
Contract ends: Once the contract is over and depending on the type of car finance, you own the car, hand it back to the dealership or start a new car finance deal
Borrow to purchase the car outright and then pay off the personal loan in fixed monthly repayments.
Pay a deposit and monthly payments to a finance company. You own the car after the final payment.
Pay a deposit and instalments to cover depreciation. Make a final larger payment to keep the car or return it.
Lease a brand-new car by paying regular monthly instalments and return it at the end of the contract.
Here is an example of how much both a PCP and HP deal could cost you.
HP Example | PCP Example | |
|---|---|---|
Car price | £15,000 | £15,000 |
Deposit | ||
Total borrowing (car price minus deposit) | £15,000 | £15,000 |
Term (months) | 48 | 48 |
Illustrative APR* | 10.50% | 10.50% |
Monthly cost | £380.63 | £236.11 |
GMFV - Final Payment | N/A | £8,000 |
*illustrative APR based on excellent or good credit.
Zuto is a credit broker, not a lender. Our rates start from 8.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £15,000 over 60 months with a representative APR of 9.9% the amount payable would be £315 a month, with a total cost of credit of £3,892 and a total amount payable of £18,892.
When deciding, consider the affordability, how long you want the car for, and if you want to own the car once the deal is finished.
Personal loan | HP (Hire Purchase) | Personal Contract Purchase (PCP) | |
|---|---|---|---|
Deposit needed | No | Likely | Likely |
You own the car straight away | Yes | No | No |
You’ll own the car at the end of the deal | Yes | Yes | No (unless you pay off the remaining balance – but this is likely to be a large final payment) |
Secured (against the car) | No | Yes | Yes |
Excess mileage charges | No | Yes | Yes |
Monthly payments | Yes | Yes | Yes |
Available with bad credit | Yes, but expect high rates | Likely | Likely |
Zuto are car finance specialists who work with a wide panel of lenders to find the best finance option for your circumstances.
Established in 2006, Zuto have helped over 350,000 thousands secure vehicle finance.
Here are some of the reasons we chose to partner with Zuto:
Options to suit you: They have over 300 finance products available from their panel of lenders and consider all circumstances.
Car finance experts: Zuto have been offering car finance since 2006 and are rated excellent on Trustpilot with over 30,000 reviews. Once approved, you’ll get a dedicated car buying expert who will guide you through the process and help you find a car.
Pre-approved finance – when you apply with Zuto, you’ll get a decision in 60 seconds to find out if you’re approved. The initial quote has no impact on your credit score.
There are different advantages to paying for a car upfront and in or taking out finance:
Avoids interest charges (unless you get a car loan), saving money in the long run
Immediate ownership without restrictions such as annual mileage limits
Potentially a wider choice of vehicles including lower cost, second-hand runarounds
May help make expensive cars more accessible
Keep savings intact for emergencies or other investments
Flexible finance deals give you the choice to buy or lease
"With the car-finance mis-selling case making headlines, be wary that scammers might contact you to say you're owed compensation and may ask for your details so they can steal your identity. In general, if you're contacted out of the blue by someone about mis-sold car finance, they're not to be trusted. "
"In the meantime, it's emerged that delays mean that consumers who were victims of car finance mis-selling now won't find out if they're due compensation until December 2025. However, assuming there will be a lot of claims for lenders to deal with, it's important you get your complaint in to your lender as soon as possible."
Kara Gammell Senior Editorial Strategy Lead/Brand Spokesperson
If you think you’ve been mis sold a car finance deal, you can lodge a complaint to the Ombudsman.
Your grounds for complaint could be that you feel the terms of the contract weren’t made clear to you. Or that the lender failed to carry out the stringent affordability checks that they’re obliged to do.
At the time of writing, the Financial Conduct Authority (FCA) is still investigating car finance mis selling. The investigation was launched after it emerged that millions of Britons may have been charged too much on car finance deals before January 2021.
The FCA was due to publish the results of its investigation in September 2024, however delays relating to an ongoing court case mean it will likely now not do so until December 2025. As a result, it looks like would-be claimants could be waiting much longer than anticipated to know if they're eligible for compensation.
Among the lenders under investigation are Barclays Partner Finance, Blackhorse and Santander. If you think you may have been affected, it’s a good idea to register your complaint as soon as you can so that you’ll be first in line for compensation in the event that the probe clears the way for a claim.
Refinancing your car can be a smart move because it could help you secure a better rate, or lower your monthly payments.
Opting to refinance your car can also help you fund a balloon payment if you have a Personal Contract Purchase agreement on your current car.
If your credit rating has improved since you initially signed your finance deal, there’s a good chance you may be able to refinance for cheaper payments.
You may also be able to save money if you didn’t shop around when you secured your current car finance arrangement.
Finally, in the event that market conditions have changed (for instance, if interest rates have fallen), you might be able to refinance for better terms.
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Find the right car finance option for you and see which rates you’ll be guaranteed to get
Decide which car finance option is right for you, from PCP or HP.
Just tell us a little about you, your finances and what you’re looking for
You’ll be able to review car finance options once you’ve been approved so you can proceed with confidence.
You generally have to be over 18 to get car finance, and lenders will often have their own specific requirements. You can find out more by looking at their website or contacting them directly, by phone, email, or post.
Car refinancing involves moving onto a new car finance deal, and using this to pay off your existing agreement, usually to benefit from lower interest rates or lower monthly payments.
To apply for a loan you’ll need your address, contact details, details about your income, expenditure and employment. You’ll also need to mention how much you want to borrow, and for how long.
This depends on the lender. Some loan providers will charge you extra fees if you start making higher repayments than have been agreed, but others may allow it. There may be an early repayment penalty charge if you want to clear the loan in full before the end of the term.
Missing repayments could have several negative effects so always speak to your lender as soon as possible if you are experiencing difficulties. The lender should be able to offer options to help you mitigate the problem. A missed debt payment could harm your credit score and result in a County Court Judgement against you. Any assets secured against the loan could eventually be repossessed. Try to avoid missing repayments as it is likely to make borrowing more difficult and more expensive in future.
When looking to finance your new car consider what is most affordable for your circumstances, not what is necessarily the cheapest.
If you can’t afford to pay for your car upfront with cash (which will usually be the cheapest way to buy a car), taking out a personal loan could be a way to spread the cost of the purchase over a number of years to make it more affordable.
When deciding what is the best way to finance a car, you’ll need to consider the interest, the loan term and any charges added to the finance plan you take out, as well as the size of your monthly repayments.
It can take a few minutes to a few days to get approved for a car loan, depending on what type of lender it is, the type of loan you’ve applied for and the type of car you’re looking to buy.
Whether it’s better to choose a hire purchase or personal contract purchase (PCP) contract will depend on a range of factors, including costs, what you want out of the deal and your personal circumstances.
PCP car finance can offer cheaper monthly payments but you won't own the car at the end of the agreement unless you can make the optional final payment - sometimes known as a balloon payment.
With hire purchase you know that once you’ve paid the final instalment the car is yours to keep.
It is also worth comparing any conditions, such as maximum annual mileage, which might influence your decision as to the best type of finance for you.
Yes, the car finance industry in the UK is regulated by the Financial Conduct Authority (FCA).
The FCA ensures lenders adhere to strict guidelines regarding transparency, affordability assessments, and fair treatment of customers.
Regulations aim to protect consumers from predatory lending practices and ensure clear terms and conditions are in place for car finance products.
Lenders must be authorised by the FCA to offer car finance, providing consumers with recourse in case of disputes.
If you’ve struggled to keep up with repayments in the past or you don’t have a credit history, it may still be possible to get car finance.
We work with specialists in car finance for bad credit, and we might be able to match you with a car loan that works for you.
Taking out car finance won’t lower your credit score unless you fail to keep up with your payments.
In fact, showing you can handle car finance responsibly over the long term can help make you more appealing to future lenders.
Representative 29.9% APR
Yes, as with any other road vehicle, you need to be insured to drive your financed car.
Some finance companies may make it a condition of the contract that you take out fully comprehensive insurance, and may even offer insurance as part of the overall package.
Always check your finance agreement for specific insurance requirements.
