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Cheap Car Finance & Advice

APR from 2.8%; cheapest PCP £79/m

Buying a car: it's a biggie. Chances are the only thing that you'll ever spend more money on is your house. And with so many routes to go down when it comes to paying for it, it can be a complex and confusing experience. Our car finance guide below sets out your options and gives you the latest on what's available in the car finance market.

Buying a new or used car: Your finance options

1What are your car finance options?
2Pay with savings?

Interest rates for savers are now at an historic low for saver and chances are that if you're not moving accounts regularly (a pain in itself), you'll be seeing a minimal return on what you have in the bank or building society. 

Consider:

  • Could you make your money work harder by putting your savings into a high interest account rather than spending them on a car? Are you buying new and if so, is there 0% finance on offer?

  • Can you use a chunk of those savings for a deposit on a loan? A larger deposit often opens up cheaper interest rates – if you go down the hire purchase route - and therefore makes the loan cheaper.

  • Can you pay for at least part of the car purchase on credit card? This will give you additional protection under Section 75 of the Consumer Credit Act 1974. But, make sure the card is paid off at the end of the month or you're on a 0% finance deal, otherwise this will significantly increase the cost of your loan. Credit cards are ALWAYS an expensive way of borrowing money.

3Pay with finance from a specialist broker?

In recent years specialist brokers have begin to offer finance purely for car purchases. The difference between this and a standard personal loan is that the finance is designed specifically for buying a car. There are a number of brokers who offer this service. 

Calculate the cost of car finance

Use the calculator below, in conjunction with Car Finance 247, to calculate monthly costs based on what you plan to borrow.

Amount to borrow
To pay back over

My credit score

Best available rate 9.20%

Total repayment £9,304.93

Total cost of credit £1,804.93

£155.08

60 monthly payments

Apply now

Representative example

The Representative APR is 13.2% (fixed) so if you borrow £7,500 over 4 years at a rate of 13.2% p.a (fixed) you will repay £199.21 per month and repay £9562.20 in total.

 

4How about personal leasing?

This is one of the simpler methods of finance a car, with one catch: you will NEVER own the car. But, on the flipside servicing and maintenance is usually included in the monthly payments, so that's one less outlay to worry about. 

It means that you have fixed-cost monthly motoring, you don't need to worry about depreciation and you can change your car every year if you wish. However, those monthly costs can be higher than other forms of finance, a deposit is required and you will be charged if you exceed mileage limits.

5Take a contract hire plan instead?

You'll often hear these called “PCPs”. They're a spin on traditional hire purchase and started to become popular in the early 1990s. There are a couple of very big differences to HP. Firstly the monthly payments are much lower. That means you may suddenly be able to afford a car that you thought was out of your reach. However, instead of paying for the car outright you agree that you will pay the difference between the car's original price and its resale value at the end of your finance term. This is commonly known as a balloon payment. 

Payments are typically shorter – over a term of 12-36 months and at the end of the contract you can do one of three things:

 

  • Give the car back to the dealer and pay nothing

  • Start again and take out a new PCP

  • Pay the balance and keep the car.

 

PCPs tend to have lower monthly payment, smaller deposits and more flexible repayment periods. 

There are a couple of downsides that mean it's not for you. Firstly, it can be a much more expensive than hire purchase, there can be restrictions on the mileage that you cover and, if you jump from PCP to PCP, you will never have an asset to show for your monthly payments.

6Pay with hire purchase?

This is the kind of finance that you'll typically see being offered by dealers to get YOU into a new car and commonly referred to as “HP”. It's in the dealer's interest to help you get finance and it's another opportunity for them to earn commission. You make monthly payments over a fixed period (typically two, three or four years) like a secured loan, but you usually need to put down a deposit (anything from £1 to 50% of the car's value). Unlike a personal loan, the a hire purchase loan is secured against the car, so you won't own it until it's paid off in full. That means you need to let the finance company know if you're planning to sell the car. An HPI check will show that the car still has finance outstanding (and therefore not really yours to sell...)

Hire Purchase is one of the easier ways of obtaining credit and lenders are generally happier to give loans to those without sparkling credit histories. The downsides are that they can be more expensive than a personal loan and the best deals are often on cars that are soon to be replaced.

The market for new car finance is much more competitive than that for used cars, so finance from dealers for used cars can be more expensive than opting for a personal loan. 

7Pay with a personal loan?

Traditionally these have been offered by banks and building societies, but recent years has seen the market open up to other finance organisations (including the Post Office and supermarkets) and most recently online finance aggregators. 

One of the big advantages of going for a personal loan is that you can shop around – and that's the first thing you should do. Online comparison tools make it easy, but don't stop there, make sure you know what's on offer from your local bank and building society too. Many have special offers for account holders that come in below what the aggregators offer. Don't forget, you can use a mix of savings, a 0% credit card and personal loan to pay for a car, so don't feel that you have to take a loan to cover the full cost of the car. 

What you need to bear in mind is that there can be a delay between you applying for the loan, getting approved and actually receiving the money. This has improved vastly in the past few years and it is now substantially quicker than it once was – though it's never an instant process. You should also bear in mind that taking out a loan may make it more difficult to obtain credit for something else, should you need it. 

If you're looking at cheaper cars, it may be tempting to consider a payday loan – especially if it's an emergency. These should be treated with extreme caution. APRs are high and it can be expensive. Borrowing £1000 will often mean that you will need to pay back £1300 after 28 days. 

There are two forms of personal loans: secured and unsecured. Unsecured are judged on your credit history, whereas secured loans have a form of collateral against them (usually your house) and therefore take longer to set up.

Some loan providers have structures that means the more you borrow, the lower the APR. So if you're on the cusp of a boundary, it may be worth opting to borrow a little bit more to save.

 

8What is a PCP (Personal Contract Plan)?

A PCP, or personal contract purchase, is a way of financing a new car.

With monthly payments, it is similar in principle to hire purchase, but the amount paid each month is smaller. This is because instead of paying off the entire value of the car over the term of the agreement, the customer is only paying off the depreciation.

People choosing a PCP will usually have to pay a deposit, followed by a monthly payment for the rest of the term. At the end, the customer has the option of buying the car by paying the outstanding value, often called a balloon payment, or taking out a PCP on a new car. The guaranteed future value is the mechanism upon which the deposit and monthly payments are calculated.

Click here to see our round-up of the best PCP deals currently on offer

What will your car loan cost? APR and rates tables

Below are tables of rates that you may be able to get, based on your credit history. They show how much a loan will cost you and the monthly repayments on that car loan. These tables are an illustration based on the most recent available data. Quotes are based on your individual circumstances and, as a result, may vary from the figures below.

Poor credit history

Amount borrowed Repayment period Best available APR Total repayment Cost of credit Monthly payment
£1000 36 months 19.10% £1,294.40 £294.40 £35.96
£5000 36 months 19.10% £6,472 £1,472 £179.78
£10,000 36 months 19.10% £12,944.04 £2,944.04 £359.56
£15,000 36 months 19.10% £19,416.07 £4,416.07 £539.34
£20,000 36 months N/A N/A N/A N/A

Fair credit history

Amount borrowed Repayment period Best available APR Total repayment Cost of credit Monthly payment
£1000 36 months 13.20% £1,203.69 £203.69 £33.44
£5000 36 months 13.20% £6,018.45 £1,018.45 £167.18
£10,000 36 months 13.20% £12,036.90 £2,036.90 £334.36
£15,000 36 months 13.20% £18,055.34 £3,055.34 £501.54
£20,000 36 months 13.20% £24,073.79 £4,073.79 £668.72

Good credit history

Amount borrowed Repayment period Best available APR Total repayment Cost of credit Monthly payment
£1000 36 months 9.20% £1,142.00 £142.00 £31.72
£5000 36 months 9.20% £5,710.01 £710.01 £158.61
£10,000 36 months 9.20% £11.420.02 £1,420 £317.22
£15,000 36 months 9.20% £17,130.03 £2,130.03 £475.83
£20,000 36 months 9.20% £22,840.04 £2,840.04 £634.45

Excellent credit history

Amount borrowed Repayment period Best available APR Total repayment Cost of credit Monthly payment
£1000 36 months 7.00% £1,108.04 £108.04 £30.78
£5000 36 months 7.00% £5,540.20 £540.20 £153.89
£10,000 36 months 7.00% £11,840.40 £1,080.40 £307.79
£15,000 36 months 7.00% £16,620.59 £1,620.59 £461.68
£20,000 36 months 7.00% £22,160.79 £2,160.79 £615.58

*Last updated June 2017, figures from CarFinance 247

 

Comparison table with high street lenders' car loans

  Amount that can be loaned Highest representative APR Lowest representative APR Other information

Barclays car loans 

Barclays 

£1000-£50,000 22.9% 4.9% Lowest APR available between £7500 and £15,000

HSBC car loans

Hsbc -logo

£1000-£25,000 21.9% 3.3% "Lowest ever rate" for new customers borrowing between £7000 and £15,000

Lloyds Bank car loans

Lloyds _personal _banking _logo (1)

£1000-£50,000 27.7% 4.6% Lowest APR available between £7500 and £25,000

Nationwide car loans

Logo 2xtrans (1)

£1000-£25,000 13.9% 3.4% Main current account customers will get a discount of at least 1% APR

 Natwest car loans

New Logo Rebrand

£1000-£50,000 24.9% 3.4% Lowest APR is available when you borrow between £7500 and £19,950

 TSB car loans

Logo

£1000-£25,000 30% 2.9% TSB loans allow two repayment holidays

*Updated October 2017, figures from lenders' websites

Top Five Best PCP finance deals

PCP deals aren't for everyone, but if you're after low monthly payments and want a new car, they can be cost effective. These are the best five finance deals on some of the UK's favourite cars, available through manufacturer schemes and sourced through research of manufacturer websites:

The car The PCP finance deal

A4 (1)

Audi A4 S line 1.4 TFSI 150PS

Holding it's own against, even arguably surpassing rivals like the BMW 3 Series and Jaguar XE, the A4 is a great bargain on PCP for anyone looking for a luxury saloon. There's a generous deposit contribution of £3150, as long as you can match it with your own £3616 - along with a very low interest rate.

Our full review of the Audi A4 here

Monthly payment: £299

Cash price: £31,105

Customer deposit: £3616

Dealer deposit contribution: £3150

Total deposit: £6766

Duration: 49 months/annual mileage: 10,000

Total amount of credit: £24,339 at 2.9% APR representative, Optional final payment: £12,359

Total payable by customer: £33,187, excess mileage fee: 9.6p per mile 

Seat Ibiza New (1)

SEAT Ibiza SE Design 1.0 TSI  95PS

The new SEAT Ibiza is a wonderfully updated little hatchback, with the equally impressive 1.0 TSI engine on offer. The Ibiza not only offers a good deposit contribution of £1500 - but also comes with one year's free insurance and an extra £500 when you take a test drive (until 4 December 2017).

Our full review of the new SEAT Ibiza here

Monthly payment: £199

Cash price: £15,545

Customer deposit: £1599

Dealer deposit contribution: £1500

Total deposit: £3099

Duration: 49 months/annual mileage: 10,000

Total amount of credit: £12,446 at 5.9% APR representative, Optional final payment: £5125

Total payable by customer: £16,087, excess mileage fee: 3.6p per mile 

 Mini -cooper -s

MINI Cooper 3-door

This colourful little hatchback retains its value well and comes with a wide range of optional extras to personalise it just the way you want. Essentially, it offers the fun factor that you won't find in its more serious competitors. Plus, you'll get £1400 towards your car from MINI, as well as a reasonable mileage limit.

Our full review of the MINI Cooper here

Monthly payment: £179

Cash price: £16,810

Customer deposit: £2998

Dealer deposit contribution: £1400

Total deposit: £4398

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £12,411 at 5.9% APR representative, Optional final payment: £6138

Total payable by customer: £18,950, excess mileage fee: 3.8p per mile 

Qashqai 2

Nissan Qashqai 1.2 DIG-T 2WD N-Connecta

The Nissan Qashqai is one of the UK’s most popular cars and there are a number of offers that make the car affordable. This PCP deal has a high final payment, but a deposit contribution of £1400 and low APR makes it appealing.

Our full review of the Nissan Qashqai here

Monthly payment: £245

Cash price: £23,805

Customer deposit: £3820

Dealer deposit contribution: £1400

Total deposit: £5220

Duration: 49 months/annual mileage: 10,000

Total amount of credit: £18,585 at 2.99% APR representative, Optional final payment: £8452

Total payable by customer: £25,446 excess mileage fee: 8p per mile 

 

Hyundai I 10

Hyundai i10 S 1.0 66PS

The i10 is a handsome hatchback, offering an impressive amount of space in the cabin and a good quality interior. It recently won our Most Popular City Car award is only £100 over the course of four years on PCP. While the deposit is a bit steep at £2380, Hyundai will also contribute £250.

Our full review of the Hyundai i10 here

Monthly payment: £100

Cash price: £8995

Customer deposit: £2380

Dealer deposit contribution: £250

Total deposit: £2630

Duration: 49 months/annual mileage: 8000

Total amount of credit: £6365 at 4.9% APR representative, Optional final payment: £2542

Total payable by customer: £9877, excess mileage fee: 9p per mile 

*Updated November 2017

1Search for a PCP deal to suit you

Before you think about a PCP, consider monthly payments AND what you will be paying overall to judge whether you are getting a good deal.

2What is a PCP?

A PCP, or personal contract purchase, is a way of financing a new car.

With monthly payments, it is similar in principle to hire purchase, but the amount paid each month is smaller. This is because instead of paying off the entire value of the car over the term of the agreement, the customer is only paying off the depreciation.

People choosing a PCP will usually have to pay a deposit, followed by a monthly payment for the rest of the term. At the end, the customer has the option of buying the car by paying the outstanding value, often called a balloon payment, or taking out a PCP on a new car. The guaranteed future value is the mechanism upon which the deposit and monthly payments are calculated.

They are based around the length of time people usually keep a new car, typically three or four years. For example, if a car priced at £20,000 was offered on a PCP, the customer might be required to put down a 20 per cent deposit. The agreed value of the car after three years might be £7000.

Therefore, the payments over 36 months would be the differential between the deposit and the guaranteed value of the car, which in this case is £9000. The monthly payments would then amount to £250, and at the end of the term, the customer could choose to pay the agreed future value of the car (£7000) to buy it outright, or decide to choose another car on PCP.

For a £15,000 car on a four-year PCP, with a guaranteed future value of £3600 after a 20 per cent deposit (£3000), would require 48 monthly payments of £175.

These examples are simple calculations based on no interest payments on the finance, but it’s likely that interest could apply. Therefore the total payments, including the final balloon payment, would exceed the total value of the vehicle when new.

Cars with strong predicted residual values will often have a higher guaranteed future value. While this might make them a bit less affordable at the end of the terms should the customer decide to buy the car, it usually means modest monthly payments. It also means cars such as the Volkswagen Golf, Mini and BMW 3 Series often have attractive PCP rates.

PCPs are usually offered by manufacturers’ own finance companies, and are often given a specific name by the individual brand...

PCPs are usually offered by manufacturers’ own finance companies, and are often given a specific name by the individual brand, such as Volkswagen Solutions, Ford Options or BMW Select.

Depreciation is usually the biggest cost associated with owning a new car. With a PCP, the customer gets the benefit of a new car without having to pay for the vehicle outright.

However, as the car will have an agreed value at the end of the term, the servicing schedule must be maintained, and there would be a cash penalty for exceeding an agreed mileage (typically set at 10,000 miles a year).

It also means the finance company rather than the customer owns the car, unless the finance is settled at the end of the term if the customer pays the balloon payment. But as almost all cars depreciate as soon as they leave the forecourt, it’s easy to see the appeal of not owning such a high-value depreciating asset.

It’s possible to settle a PCP earlier than the agreed length of the finance agreement, but customers would need to check specific rules before signing up. The value of the vehicle is only guaranteed at the end of the agreed time, so the customer might need to cover any shortfall in value. And there are often charges for early termination, but they are not normally large.

In fact, when certain manufacturer incentives on particular cars occur, dealers might encourage PCP customers to change into a new vehicle before the end of the agreement, and make is relatively easy to do so, without the customer incurring prohibitive charges.

It is important to read and understand the terms of the agreement before signing. Any interest or fees would mean a higher amount would ultimately be paid than the monthly payments, and there are other costs associated with running a car which will not be included in the PCP, such as fuel, servicing, maintenance and repair, and insurance.

If you usually change your new car every few years, a PCP would likely be the most cost effective way of procuring a car (or van). If you typically keep a vehicle for longer, then hire purchase could be a better way of financing it.

3PCP Car Finance: Small cars for under £100 a month

PCP Car Finance: Small cars for under £100 a month

We've looked all over to find you the best offers on small cars. PCP deals aren't for everyone, but if you're after low monthly payments and want a new car, they can be cost effective. These are the cheapest we currently know of:

The car The PCP finance deal

Dacia -Sandero -2017-(1) 

Dacia Sandero Ambience SCe 75PS

The Dacia Sandero offers a refreshing change to other 'value' alternatives, with prices starting from less than £7500. It's quite a lot more practical than similarly priced cars like the Citroen C1, plus it's cheap to run and easy to drive, making it a great choice for the budget-conscious.

Our full review of the Dacia Sandero here 

Monthly payment: £89

Cash price: £7395

Customer deposit: £1361

Dealer deposit contribution: £400

Total deposit: £1761

Duration: 49 months/annual mileage: 6000

Total amount of credit: £5634 at 7.9% APR representative, Optional final payment: £2676

Total payable by customer: £8709, excess mileage fee: 8p per mile 

Celerio

Suzuki Celerio 1.0 SZ2

While the Suzuki Celerio isn't the most interesting car in its class, it does offer good fuel economy and low tax - making it an good value little runabout. It also currently comes with one year's free insurance and three years' servicing.

Our full review of the Suzuki Celerio here 

Monthly payment: £89

Cash price: £7499

Customer deposit: £1945

Dealer deposit contribution: £0

Total deposit: £1945

Duration: 49 months/annual mileage: 6000

Total amount of credit: £5554 at 5.9% APR representative, Optional final payment: £2206

Total payable by customer: £8423, excess mileage fee: 7p per mile 

Ka+

Ford Ka+ Studio 1.2 Ti-VCT 70PS

The Ford Ka+ is a different animal to the previous generation Ka, which was known to be a bit problematic. Now based on the Fiesta, the Ka+ is not only the cheapest new Ford - but is also a nice little hatchback. It isn't the most exciting engine, but running costs are low. The Ka+ is available on a PCP deal for £100 a month over four years. There's no Ford deposit contribution but you'll get more space for your money considering the size of this car compared to the little city cars in this list.

Our full review of the Ford Ka+ here

Monthly payment: £100

Cash price: £9795

Customer deposit: £3000

Dealer deposit contribution: £0

Total deposit: £3000

Duration: 49 months/annual mileage: 9000

Total amount of credit: £6545 at 5.9% APR representative, Optional final payment: £2859

Total payable by customer: £10,668, excess mileage fee: 7.2p per mile 

I 10

Hyundai i10 S 1.0 66PS

The i10 is a handsome hatchback, offering an impressive amount of space in the cabin and a good quality interior. It recently won our Most Popular City Car award is only £100 over the course of four years on PCP. While the deposit is a bit steep at £2380, Hyundai will also contribute £250.

Our full review of the Hyundai i10 here

Monthly payment: £100

Cash price: £8995

Customer deposit: £2380

Dealer deposit contribution: £250

Total deposit: £2630

Duration: 49 months/annual mileage: 8000

Total amount of credit: £6365 at 4.9% APR representative, Optional final payment: £2542

Total payable by customer: £9877, excess mileage fee: 9p per mile 

Kia Picanto (2) (2)

Kia Picanto 1.0 66PS

The Picanto is a smart looking small car, and this offer on the five-door model with air conditioning comes with monthly payments of £93 over three years if you're prepared to stump up a deposit of £2600. It’s a pretty good deal, and should you decide to complete the purchase with the final payment, you’ll also have the benefit of Kia’s seven-year warranty.

Our full review of the Kia Picanto here

Monthly payment: £93

Cash price: £9450

Customer deposit: £2600

Dealer deposit contribution: £500

Total deposit: £3100

Duration: 36months/annual mileage: 8000

Total amount of credit: £6350 at 4.9% APR representative, Optional final payment: £3767

Total payable by customer: £10,201 excess mileage fee: 7.5p per mile 

*Updated November 2017

4PCP Car Finance: Crossovers for under £250 a month

PCP Car Finance: Crossovers for under £250 a month

It seems that everyone wants a crossover now. It's easy to see why. They blend the versatility of an estate with the more substantial looks of an SUV but without the overly large dimensions. So we've picked the best five crossover deals on PCP, all for under £250 per month (and many under £200 per month).

The car The PCP finance deal

Qashqai 2

Nissan Qashqai 1.2 DIG-T 2WD N-Connecta

The Nissan Qashqai is one of the UK’s most popular cars and there are a number of offers that make the car affordable. This PCP deal has a high final payment, but a deposit contribution of £1400 and low APR makes it appealing.

Our full review of the Nissan Qashqai here

Monthly payment: £245

Cash price: £23,805

Customer deposit: £3820

Dealer deposit contribution: £1400

Total deposit: £5220

Duration: 49 months/annual mileage: 10,000

Total amount of credit: £18,585 at 2.99% APR representative, Optional final payment: £8452

Total payable by customer: £25,446 excess mileage fee: 8p per mile 

Kodiaq

Skoda Kodiaq S 1.4 TSI 125 PS (5 seats)

The Skoda Kodiaq is everything a family car should be. Comfortable, spacious, affordable, well-equipped, practical and safe, it’s almost impossible to pick fault with. With a £2000 deposit contribution, this deal is great value. 

Our full review of the Skoda Kodiaq here

Monthly payment: £230

Cash price: £22,190

Customer deposit: £3329

Dealer deposit contribution: £2000

Total deposit: £5329

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £16,862 at 5.5% APR representative, Optional final payment: £8859

Total payable by customer: £25,001, excess mileage fee: 6p per mile 

Peugeot 2008 (1)

Peugeot 2008 Allure 1.2 Puretech 82PS

The 2008 is a good looking both inside and out, plus it offers more or less all the practicality you could need from a smaller family car. Add in low running costs and and the £1500 deposit contribution, and it makes for an appealing choice.

Our full review of the Peugeot 2008 here

Monthly payment: £194

Cash price: £17,845

Customer deposit: £3406

Dealer deposit contribution: £1500

Total deposit: £4906

Duration: 37 months/annual mileage: 10,000

Total amount of credit: £12,759 at 2.9% APR representative, Optional final payment: £6624

Total payable by customer: £18,523, excess mileage fee: 6p per mile

Sportage

Kia Sportage 1.6 GDi 130PS

The Sportage has built up a strong reputation, particularly when it comes to value for money. This latest Sportage sticks with those core strengths but adds improved refinement and an extra dash of quality throughout. Plus of course it comes with Kia's seven-year 100,000 mile warranty, and now 

Our full review of the Kia Sportage here

Monthly payment: £228

Cash price: £21,195

Customer deposit: £3800

Dealer deposit contribution: £1000

Total deposit: £4800

Duration: 37 months/annual mileage: 10,000

Total amount of credit: £16,395 at 4.9% APR representative, Optional final payment: £10,148

Total payable by customer: £23,164, excess mileage fee: 7.5p per mile 

Tiguan Grey

Volkswagen Tiguan S 1.4 TSI 125PS

It might have been introduced in 2016, but the second-generation Volkswagen Tiguan is available with a £2000 deposit contribution from the dealer. And if you can stump up enough cash, you can pay £249 a month. The customer deposit is £3700 and the agreement has a 10,000-mile annual allowance over four years.

Our full review of the Volkswagen Tiguan here

Monthly payment: £249

Cash price: £23,250

Customer deposit: £3700

Dealer deposit contribution: £2000

Total deposit: £5700

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £17,550 at 5.1% APR representative, Optional final payment: £8438

Total payable by customer: £25,850 excess mileage fee: 6p per mile 

*Updated November 2017

5PCP Car Finance: Family car PCP deals

PCP Car Finance: Family car PCP deals

Family cars are getting more dynamic and affordable, especially if you use a PCP deals. We've found the best small and large family cars around (all for under £200 per month) so you know just how much you'll get for your money.

The car The PCP finance deal

Dacia -sandero -stepway -7 

Dacia Sandero Stepway 0.9 TCe

Dacia has established a reputation for providing simple, appealing and high-value cars. The Dandero Stepway has similar dimensions to the Sandero hatchback, but also comes with a more rugged SUV-like look. This offer makes the car available for £99 a month and has a £400 deposit contribution from the dealer - however, the mileage limit is a very low 6000.

Our full review of the Dacia Sandero Stepway here

Monthly payment: £99

Cash price: £8995

Customer deposit: £2295

Dealer deposit contribution: £400

Total deposit: £2695

Duration: 49 months/annual mileage: 6000

Total amount of credit: £6300 at 7.9% APR representative, Optional final payment: £3022

Total payable by customer: £10,470, excess mileage fee: 8p per mile

Gold Golf

Volkswagen Golf SE Nav 1.0 TSI 110PS

The Volkswagen Golf is a renowned for its quality. For £195 you'll get a comfortable, practical car - possibly the best in its class - along with a £1000 deposit contribution from Volkswagen when you prchase on Solutions Personal Contract Plan.

Our full review of the Volkswagen Golf here

Monthly payment: £195

Cash price: £20,540

Customer deposit: £5093

Dealer deposit contribution: £1000

Total deposit: £6093

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £14,447 at 4.9% APR representative, Optional final payment: £7364

Total payable by customer: £22,632, excess mileage fee: 8.4p per mile

Astra Red

Vauxhall Astra 1.4 SRI

The Vauxhall Astra might not be the most exciting drive, but it offers good value for money and decent fuel ecnomy - which is why the 2015-faclift model is sopopular as a company car. It's on offer through PCP for £197 per month, with a £2000 deposit contribution.

Our full review of the Vuaxhall Astra here

Monthly payment: £197

Cash price: £19,135

Customer deposit: £4200

Dealer deposit contribution: £2000

Total deposit: £6200

Duration: 48 months/annual mileage : 10,000

Total amount of credit: £12,935 at 4.2% APR representative, Optional final payment: £5178

Total payable by customer: £20,643 excess mileage fee: 9p per mile

Focus 2

Ford Focus Zetec 1.0 EcoBoost 100PS

It’s good to drive, fairly practical and it feels well made. Factor in the improved cabin and high-tech features and the Focus is a great choice of family car. It's available for just under £200 per month, and 0% APR means that you won't pay more than the retail price of the Focus - which is always a bonus.

Our full review of the Ford Focus here

Monthly payment: £198

Cash price: £18,035

Customer deposit: £4800

Dealer deposit contribution: £0

Total deposit: £4788

Duration: 37 months/annual mileage: 9000

Total amount of credit: £13,235 at 0% APR representative, Optional final payment: £6118

Total payable by customer: £18,035 excess mileage fee: 7.2p per mile

 Mazda 3

Mazda 3 SE 120PS

The Mazda 3 is a great choice for someone who wants to stand out from the usual crowd of Volkswagen Golf and Vauxhall Astra. It offers all the impressive quality of rivals like the Golf, plus it has strong engines and excellent driving dynamics, making it easy to recommend. The Mazda 3 is on 0% APR, which means you won't pay any interest. Just be careful not to go over the 9000 miles, or suffer the steep 14.9p per mile charge (on top of a steep £5280 deposit).

Our full review of the Mazda 3 here

Monthly payment: £179

Cash price: £18,665

Customer deposit: £5280

Dealer deposit contribution: £1250

Total deposit: £6530

Duration: 37 months/annual mileage: 9000

Total amount of credit: £12,135 at 0% APR representative, Optional final payment: £5691

Total payable by customer: £18,665 excess mileage fee: 14.9p per mile

*Updated November 2017

Car manufacturer finance deals and offers

Manufacturers often make introduce new finance deals to entice buyers into showrooms.

If you’re looking for a new car it can be tricky to pick from the numerous deals, reductions, special offers and low rate finance packages, so we’ve rounded up some of the best current offers from all of the major manufacturers.

Obviously all of these offers are subject to terms and conditions so check with your local dealer. 

  Finance offers and deals The small print  Better deal available?

 Alfa Romeo offers

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0% finance is available on the MiTo and Giulietta.  £1250 contribution is available when you test drive the MiTo or Giulietta, plus £1000 dealer contribution towards the Giulietta's deposit.

Must be registered by 31 December 2017 Elsewhere on this site, there are savings of 26% to be had on the Giulietta

Audi offers

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2.9% interest on the A4, with a £3150 deposit contribution.

Savings up to £8000 on a new car through the scrappage scheme are also available. Click here for more details.

Cars must be ordered by 1 January 2018 Biggest savings on the Audi A3, although its only a 15% discount

BMW offers

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Monthly payments of £199 over 48 months will get you a BMW 1 Series (on 4.9% APR). Lowest APR (1.9% APR) available is on the 320d M Sport, with £279 monthly payments and a £5198 deposit contribution.

Plus up to £2000 off a new car through BMW's scrappage scheme.

Interested? Download a brochure

Ends 31 December 2017 3 Series is available with savings of up to 27%

Citroen offers

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C4 Cactus on 0% finance over three years with monthly deposits of £175 and £1900 deposit contribution.

Citroen's scrappage scheme is also offering up to £6400 on a new model. Click here to see the details.

Ends 30 September 2017 Big discounts can be found on the C1 and C4, with up to 36% off

Dacia offers

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Get a new Dacia Sandero for £89 per month on finance, with a £400 deposit contribution and five year warranty. Plus two years/24,000 miles service plan from £11.99 per month, three years/30,000 miles service plan from £11.99 per month or three years/36,000 miles service plan from £13.99 per month.

Dacia's scrappage scheme offers customers up to £1000 off a new Duster, which can be combined with the existing range of four-year PCP or Hire Purchase finance offers.

Interested? Download a brochure

Ends 31 January 2018 Don't expect huge discounts - these are cheap cars to start with - but 15% is possible

DS offers

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The DS 3 Connected Chic is available from £199 per month over 36 months and includes a £1000 deposit contribution. Get up to £5500 off a new car with PSA's new scrappage scheme.

Ends 30 September 2017 You can get as much as 25% of a DS 3 here

Fiat offers

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Pay 0% finance on a Fiat 500, with monthly payments of £180 on a three year PCP.

Save up to £8500 on a new car through the scrappage incentive, running up to 30 September 2017.

Ends 31 December 2017 500L is available with 32% off

Ford offers

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Monthly payments of £99 will get you a Ford KA+ on 0% finance, with £250 deposit contribution. £189 per month will get you a Focus on 0% finance with a £2100 deposit contribution. £265 per month will get you a Galaxy, on 0% finance - with £2750 deposit contribution.

Get up to £4950 off a new Focus with Ford's scrappage scheme.

Ends 31 December 2017

 

Focus can be found on the site with a discount of 25%

 

Honda offers

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The previous model Civic Tourer is available for £259 per month, with 0% APR and five years servicing for £599.

Test drive the new Civic between before 31 December and Honda will give you £500 off. That’s on top of a £750 deposit contribution.

Ends 31 December 2017 The older model Civic Tourer is on offer with as much as a 26% discount

Hyundai offers

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Monthly payments of £229 on the new Hyundai i30 with a £1500 deposit contribution and 0% APR.

Hyundai is also offering  up to £5000 off the price of a new model. Scrappage scheme runs until the end of the year.

Ends 30 September 2017 Smaller Hyundai, like the i10, are on sale for less than £9000 - a 20% discount

Jaguar offers

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The petrol XE is available on 4.9% finance, with a deposit contribution of £2735 and monthly payments of £259.  Ends 30 September 2017 Savings aren't high on any models - but you can find 5% off a diesel XF
Kia offers  270110kia Copy

The Soul EV, Niro PHEV or Optima PHEV are available with a free home charging point and installation at no cost.

Upgrade to an Optima Sportswagon from an Optima Saloon for free.

All-new Picanto and Rio are available with 4.9% PCP. The Picanto comes with a deposit contribution from £500 - £750, while the Rio benefits from a deposit contribution between £1250 and £1500.

£2000 discount if you trade in your old car before the end of the year. Scrappage scheme details here.

Ends 31 December 2017 Over 25% off the Cee'd Sportswagen with broker 4 cars
Land Rover offers  Nts _lrcolourlogo _copy _new _bbda Copy (1) £2500 deposit allowance on the Range Rover Evoque, on 6.9% finance and £399 monthly payments. Ends 31 December 2017 Discounts for Land Rover aren't massive, but Motor Parks offer 14% off the Discovery Sport

Lexus offers

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CT200h SE is £209 per month on 3.9% finance, while the IS300h Executive is £299 per month, on 1.9% finance. Both come with £2000 hybrid deposit contributions.

Lexus recently introduced their scrappage scheme, which offers discounts of up to £4000 on its range of hybrid vehicles.
 

Ends 31 December 2017 Prices as low as £15,900 for a low mileage 2016 Lexus CT 200h SE

Mazda offers 

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 0% APR on various models, including a deposit contribution of £850 on the Mazda 2, £1250 on the Mazda 3 and £2500 on the Mazda 6.

Mazda's scrappage scheme is currently offering up to £5000 off a new car.

Ends 31 December 2017 Get a CX-3 for as low as £15,035

Mercedes-Benz offers

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The C-Class Estate is on offer for £319 per month. This PCP offer includes a £5370 deposit contribution and 4.9% APR.

Mercedes-Benz scrappage scheme offers up to £7000 off a new car when you trade in your old diesel.

Ends 31 December 2017 C-Class are on offer with a 30% discount

MINI offers

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 A monthly payment of £189, with a deposit contribution of £1950 and 5.9% APR, could get you a MINI Cooper S 5-door.

Get £2000 off a new model with MINI's scrappage programme.

Ends 31 December 2017 Savings of 16% can be found for MINI

Mitsubishi offers

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Get £500 when you test drive any new Mitsubishi and purchase on PCP finance.

A PCP plan on the Outlander PHEV offers monthly payment of £405 over three years, with a deposit contribution of £2750 and 5.9% APR (plus an additional £2500 from the government plug-in car grant). The ASX is available for £295 per month, with a £2250 Finance deposit contribution and 5.9% APR.

Save up to £4000 on the Mitsubishi scrappage scheme.

Ends 16 December 2017 Save 24% on an Outlander elsewhere

Nissan offers

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The Leaf is on offer for £219 per month, 4.49% APR and a £4000 deposit contribution, plus a free home charging unit and three years' free servicing.

The Navara is available on 0% finance for £289 per month and comes with five years' pan-European roadside assistance and four years' servicing for £199. Plus a £2500 deposit contribution.

Save up to £2000 on a new model with Nissan's scrappage scheme.

Ends 21 December 2017

 

Save 37% on a Leaf and 30% on a Juke

Peugeot offers

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 Monthly payments of £249, with a £1200 deposit contribution and 0% APR, on a 308 when you buy through Peugeot Passport finance product. Also comes with roadside assistance for the duration of the PCP contract.

Peugeot is offering buyers a discount ranging between £1750 and £6000 when they scrap their old car for a new model.

Ends 16 October 2017 Discounts up to 19% on a 2008 Estate

Renault offers

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The new Clio is available for £129 per month, with 0% APR. The Renault Captur is on offer for £159 per month on 0% APR and the Kadjar is available for £199 per month on 0% APR. This means you won't pay anymore than the list price over the duration of the contract for these vehicles.

The Clio is available on 0% finance with one year's free insurance.

Renault's scrappage scheme offers between £3000 and £7000, alongside a £2000 scrappage allowance.

Ends 31 January 2018 The Megane is on offer with a 26% saving

SEAT offers

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Get the new SEAT Ibiza for £189 per month, with £1500 deposit contribution and one year's free insurance.

Save an extra £1000 with SEAT's new dayight savings time offer (ends 31 October 2017). Voucher here.

Save up to £3500 on a new SEAT when you trade in your old car. Offers available to owners of pre-Euro 5 diesel cars produced before 2010.

Ends 4 December 2017 Savings can be found on thise site with as much as 27% off

Skoda offers

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The Fabia is on offer for £155 per month, with a £2000 deposit contribution and 2.9% APR - plus three years of roadside assistance.

Skoda's scrappage scheme is available to owners of pre-Euro 5 diesel cars produced before 2010 and, with £4000 off a new Superb or Superb Estate, there are some good savings to be had.

Ends 2 January 2018 Up to 22% off the Fabia

Smart offers

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Deposit contribution of £1103 on a Smart ForTwo, with monthly payments of £139, no customer deposit and 0% APR. Ends 31 December 2017 Get a 2017 Fortwo with 10 miles on the clock for as low as £7999

SsangYong offers

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The Korando is available for £199 per month, with 6.9% APR and £1651 deposit contribution. Ends 30 September 2017 The SsangYong Tivoli is available elsewhere for less than £12,600

Subaru offers

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Outback and Forester models are interest free for one year. Pay 50% deposit, pay nothing for a year, then pay the final 50% balance one year after the deposit is paid – the final payment is completely interest free. This finance offer also includes a five year warranty, with £2500 deposit contribution on the Forester and £3500 on the Outback. Ends 31 December 2017 A 2017 Subaru Levorg GT with 8 miles on the clock is as low as £25,995
Suzuki offers    59608suz Copy

The new Swift is on a PCP offer for monthly payments of £179 over 43 months, with 0% APR and no deposit.

The Vitara is available for £199 per month on 0% APR.

The Celerio and Ignis are both available on PCP with one year's free insurance and three years' free servicing.

Ends 31 December 2017 The Baleno is available here for as low as £9248
Toyota offers   Logotoyota Copy

 The Aygo is available on 0% finance for £129 per month, while the Auris Hybrid is on offer for £289 per month - with a £1500 deposit contribution and 0% finance.

Toyota is offering savings of up to £4000 on their range of petrol and petrol-hybrid vehicles. The scrappage scheme runs until 31 December 2017.

 

Ends 17 December 2017 Get 16% discount on a Prius

Vauxhall offers

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 Get a £2000 deposit contribution on an Astra on 4.2% finance, with monthly payments of £245. Ends 18 December 2017 A Vauxhall Viva is on offer on this site for less than £8000
Volkswagen offers   Vw _3544 Copy

 Get £3000 towards the deposit of a new Volkswagen Arteon, with payments of £305 per month, 4.9% APR and the first two services for £149.

For £105 per month, you could get an Up on 4.6% finance - with £500 towards the deposit and the first two services for £149.

Get up to £6000 off a Volkswagen with their scrappage scheme. The offers are available to owners of pre-Euro 5 diesel cars produced before 2010. Scheme ends 31 December 2017.

Ends 2 January 2018 Save 26% on a Passat with Drive the Deal
Volvo offers  59728-g -vol Copy  The Volvo V40 available at 3.9% APR with £1000 deposit contribution and three years complimentary servicing when financed on Personal Contract Purchase with Volvo Car Credit. Ends 31 December 2017  It's not unusual to see the Volvo V40 below £16,000

*Updated October 2017

Car manufacturers offering car finance deals with free insurance:

Citroen offers free insurance, as well as road tax and servicing costs, through SimplyDrive.

The new SEAT Ibiza comes with one year's free insurance for drivers over 18 years old. This offer ends on 4 December 2017.

Peugeot's three-year, Just Add Fuel PCP deal combines insurance, road tax, servicing and warranty costs into a single monthly payment.

The new Volkswagen Polo comes with one year's free comprehensive cover.

The Renault Clio is on offer with one year's free insurance.

Car manufacturers offering car finance deals with zero percent finance:

Alfa Romeo, Citroen, Fiat, Ford, Honda, Hyundai, Mazda, Nissan, Peugeot, Renault, Skoda, Suzuki and Toyota

 

Not so fast. Before you pick up that pen to sign...

1What do I need to know before taking out PCP or HP finance?

If you’re looking to buy a new car then it’s highly likely that you're considering a finance package to fund it. PCP and HP deals are among the most popular forms of car finance, but there are some important things you should consider first.

2Check the deposit and monthly payments

Is the headline monthly payment low? If so, check the initial payment (sometimes listed as the deposit). This is often inflated to bring down the amount you pay each month.

3Contract mileages on PCP and HP finance are often restricted

Always check the contract mileage as this is a key element in relation to the residual value. Tempting deals, with low monthly fees, can contain hidden mileage clauses. Ensure you check the small print as excess mileage charges can end up costing you more than the monthly repayment costs of a PCP with a much higher mileage limit.

4Check and compare the amount on a PCP against an HP agreement

If you look at the total amount payable on a PCP, including the option to purchase price, you might find that the total cost is significantly higher than taking a Hire Purchase agreement. As dealers and brokers earn commission on sales, this can be built into the price of the car or into the APR rate on your finance. Always crunch the numbers to see how much you pay in total. 

5Take care in selecting a service agreement

There is a difference between a service and full maintenance agreement; the former only covers for the intermittent service as and when required and may not cover for other wear and tear, such as replacement brake discs or tyres.

6Full terms of the agreement and possible penalties must be provided

This may not always be pointed out to you by the sales person, so always request full documentation.

7Check what's acceptable as 'fair wear and tear.'

If handing back the car at the end of the PCP agreement, be sure to read the handbook the finance provider should give you to explain exactly what they will charge you for. You might find scuffed alloys and paint scratches are not accepted under the terms and a considerable repair bill could be coming your way.

Ask Honest John: Car Finance

Ask HJ

This Skoda PCP deal seems too good to be true, what's the catch?

I like the Skoda Yeti 150PS 4WD SEL 'Drive' with £1500 'free' extras. Skoda is offering a PCP plan of 0% finance plus £1000 contribution to the deposit and after three years the vehicle can be bought at an agreed price or exchanged for another plan. It sounds too good to be true, so what's the catch?
As long as you will be happy to be driving around in an old model Skoda Yeti for about two and a half years and as long as you return the car at the end of the term with no damage, it's fine. You know exactly what you will have to pay for 36 months and exactly how much you will need to buy the car at the end of the term if you want to. What isn't guaranteed is any equity left in the car to fund the deposit for another PCP, though dealers are usually financially 'supported' by manufacturers to make sure they don't lose you at this point.
Answered by Honest John
More Questions
Ask HJ

Car has outstanding finance - should I still buy it?

I’ve found a used car I really like, but it still has outstanding finance. Should I buy it or walk away?
If the finance is not paid off then whoever it is owed to still owns the car and you don't.
Answered by Honest John
More Questions

What happens if things go wrong?

What are you rights if you take out car finance and you have a problem with your car or finance provider?

1How can I send my complaint about car finance to Honest John?

Use Ask Honest John to send your message (registration required)

2How are car finance companies regulated?

Since April 2014, the FCA commenced regulating the consumer credit industry, which includes credit card issuers, payday lenders, loan and consumer finance businesses, finance credit brokers and many more types of consumer credit business.

3How do I reject a duff car or get compensation for problems with a car I have bought from a dealer?

Your rights are against the supplier, which is the dealer and the finance company jointly if you bought it on finance.

Not against the manufacturer.

The new Consumer Rights Act enacted in October 2015 theoretically gives you the statutory right to reject a new or used car (or anything else) within 30 days of purchase if any fault is found. However, this has still be be verified in the courts. Additionally, a reputable new or used car dealer may have signed up to 'Alternative Dispute Resolution' (arbitration) under an Industry Code of Practice for Vehicle Sales run by the SMMT. This used to be called Motor Codes but has now been re-named The Motor Ombudsman.

The Vehicle Sales Code covers transparent wording of adverts and pricing, clear and transparent invoicing, and the sale of a used car which is supported by a vehicle provenance check to ensure that it has not been stolen, written-off and is free of any outstanding finance payments. It also highlights that retailers should provide test drives, avoid high-pressure selling techniques, supply accurate advice on warranty and finance products, and deliver a vehicle with a full handover, complete with all historic documentation, the entire service history and a valid MOT certificate.

Furthermore, subscribers pledge to resolve any problems quickly and cost effectively should a dispute arise in relation to the sales process. As a last resort, retailers are able to refer a customer to Motor Codes, a CTSI-certified ADR provider, for adjudication prior to the awarding of a final decision.

So the first bit of advice is to try to settle the matter without getting legal. Once a dealer knows you know your legal rights he’s more likely to settle, as long as you are being reasonable.

If the car is on finance you can take the matter up with the finance company. Even if you only paid part of the cost on finance (as little as £100 on a credit card for a £30,000 car), Section 75 of the 1974 Consumer Credit Act gives you rights against the finance company.

Write to both the dealer principal and to the finance company and send your letter by Post Office Special Delivery so you get receipts for them and your letters become 'matters of record' which can't be denied.

Involve The Motor Ombudsman the SMMT's arbitration service.

Remember, "County Court is a last resort." If the dealer and finance company refuse to accept your rejection of the car, you can't continue to use it while taking County Court action against them and that could mean your car sitting on your driveway unused for months on end while you have to get buses and taxis everywhere.

Finally, except under the new Consumer Rights Act 2015, you can’t successfully reject a car for a trivial reason such as a little scratch or finding out you don’t like something about the car, unless, for example, you bought it for a specific purpose, for example to tow a caravan and then you find out it can’t.

More in-depth on your consumer rights here

Amount to borrow
Sorry. The minimum loan amount is £1000
To pay back over

My credit score

Best available rate 9.20%

Total repayment £9,304.93

Total cost of credit £1,804.93

£155.08

60 monthly payments

Apply now

Representative example

The Representative APR is 13.2% (fixed) so if you borrow £7,500 over 4 years at a rate of 13.2% p.a (fixed) you will repay £199.21 per month and repay £9562.20 in total.