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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.

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.

 

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

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.

 

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-£50,00 26.9% 4.9%  Lowest APR available between £7800 and £15,000

HSBC car loans

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£1000-£25,000 21.9% 3.3% "Lowest ever rate" for new customers borrowing between £7,000 and £15,000

Lloyds Bank car loans

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£1000-£50,000 27.7% 4.6% Lower APR (1% APR discount) available for existing customers

Nationwide car loans

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

 Natwest car loans

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 £1000-£50,000 24.9% 3.9% Lowest APR is available when you borrow between  £7,500 and £25,000

 TSB car loans

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£1000-£25,000 30% 2.8% TSB loans allow two repayment holidays

*Updated July 2017, figures from lenders' websites

Top Five Cheapest PCP finance deals

We regularly scour the market to hunt-down the cheapest way to get you into a new car. 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, available through manufacturer schemes and sourced through research of manufacturer websites:

The car The PCP finance deal

Dacia -Sandero -2017-(1) 

Dacia Sandero Ambience SCe 75

The Dacia Sandero offers a refreshing change to other ‘value’ alternatives, with prices starting from less than £6000, even years after the initial launch in 2013. 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: £7385

Customer deposit: £1485

Dealer deposit contribution: £400

Total deposit: £1885

Duration: 49 months/annual mileage: 6000

Total amount of credit: £5510 at 7.9% APR representative, Optional final payment: £2508

Total payable by customer: £8665, 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's the cheapest car on PCP in our list and comes with a generous amount of standard gear.

Our full review of the Suzuki Celerio here 

Monthly payment: £79

Cash price: £7499

Customer deposit: £2438

Dealer deposit contribution: £0

Total deposit: £2438

Duration: 49 months/annual mileage: 6000

Total amount of credit: £5061 at 5.9% APR representative, Optional final payment: £2124

Total payable by customer: £8354, excess mileage fee: 7p per mile 

Smart -Fortwo -(2) (1)

Smart Fortwo Coupe Pure

The Smart Fortwo is closely related to the Renault Twingo, but with a slightly more versatile interior. The Fortwo is available on a PCP deal for £118 a month over four years, and Smart will add £1053 to your deposit. It means that over the course of the agreement, you end up paying a bit less than the car's official on-the-road price.

Our full review of the Smart Fortwo here 

Monthly payment: £118

Cash price: £9995

Customer deposit: £0

Dealer deposit contribution: £1053

Total deposit: £1053

Duration: 48 months/annual mileage: 7000

Total amount of credit: £8942 at 0% APR representative, Optional final payment: £3280

Total payable by customer: £9995, excess mileage fee: 7.2p per mile 

I 10

Hyundai i10 SE

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 £94 over the course of four years on PCP. While the deposit is a bit steep at £2500, Hyundai will also contribute £750.

Our full review of the Hyundai i10 here

Monthly payment: £94

Cash price: £9995

Customer deposit: £2500

Dealer deposit contribution: £750

Total deposit: £3250

Duration: 49 months/annual mileage: 6,000

Total amount of credit: £6745 at 4.9% APR representative, Optional final payment: £3235

Total payable by customer: £10,981, excess mileage fee: 9p per mile 

Kia Picanto (2) (2)

Kia Picanto 1.0

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 depsoit of £3000. 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: £92.36

Cash price: £9450

Customer deposit: £3000

Dealer deposit contribution: £0

Total deposit: £3000

Duration: 36months/annual mileage: 6000

Total amount of credit: £6450 at 4.9% APR representative, Optional final payment: £3892

Total payable by customer: £10,217 excess mileage fee: 7.5p per mile 

*Updated July 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.

 

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.

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 Romeo Giulietta. £2250 additional deposit contribution is also available when you test drive the MiTo, Romeo Giulietta, Romeo Giulia and Romeo 4C.

Must be registered by the 30 September 2017  Elsewhere on this site, there are savings of 31% to be had on the Giulietta

Audi offers

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Lowest APR rate (1.9%) on a new A8, with monthly payments of £559 and a deposit contribution of 14,900. Low APR rates (3.9%) on the A4, A5, A6 and A7 with deposit contributions across the range. Cars must be ordered by 1 October 2017 Biggest savings on the Audi A8, with up to 33% discount

BMW offers

59532-g -bmw Copy

Monthly payments of £199 over 48 months will get you a BMW 1 Series. With a deposit of £4465, you will get a deposit contribution of £4405.

Interested? Download a brochure

Ends 30 September 2017 1 Series has been around a while - so savings of up to 19% are not uncommon

Citroen offers

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C4 Cactus on 0% finance over three years with monthly deposits of £179 and £1900 deposit contribution. 20% deposit contribution available on a range of models. 

SimplyDrive bundles up servicing, insurance, tax, finance and breakdown cover into one monthly payment - available on most models.

Ends 30 September 2017 C3 is still new, so discounts aren't huge, but C1 can be found with up to 42% off

Dacia offers

Dacia _100x 75 Copy

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.

Interested? Download a brochure

Ends 30 September 2017 Don't expect huge discounts - these are cheap cars to start with - but 3% is possible

Fiat offers

F _2242 Copy

The £299 monthly Be Free package - available on the Spider 124 - offers the Full Maintenance package to ensure monthly servicing costs are set at a fixed price, Breakdown Cover and Roadside assistance across Europe and the UK and a free GAP waiver. Ends 30 September 2017 Panda is available with 25% off

Ford offers

Ford -logo -big Copy

A wide range of models available on PCP offers with 0% APR. The Focus comes standard with Emergency Assistance, heated windscreen, DAb radio, Navigation, sports-style front seats, 16-inch alloy wheels and rear parking sensors for £189 per month. Ends 30 September 2017 and must be registered before 30 December 2017

 

Focus can be found on the site with a discount of 31%

 

Honda offers

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Honda Jazz is available for £189 per month, with 0% APR and five years complimentary servicing - which would usually cost £1195. CR-V Black /edition and HR-V Black Edition also available with 0% APR and five years complimentary servicing. Ends 30 September 2017 The older model Civic is on offer with as much as a 26% discount

Hyundai offers

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Monthly payments of £249 on a Hyundai i30 with a £500 deposit contribution and 0% APR.

Ends 30 September 2017 Bigger Hyundai, like the i40, are on sale for less than £16,000 - a 27% discount

Jaguar offers

Jaguar Logo _2 Copy

PCP offers across the range, including a £1100 deposit contribution with low APR on the XF. Ends 30 September 2017 Savings of up to 24% on an XF
Kia offers  270110kia Copy One years free insurance, £500 toward your deposit and 4.9% APR on the new Kia Picanto and Kia Rio. Free upgrade from Optima Saloon to Optima Sportswagon. If you own the previous-generation Sportage you can also receive £500 off the purchase of a new Sportage or Sorento as part of a loyalty offer. Customers who register either model before 30 September will receive a free three-year Kia Care-3 servicing package as well. Ends 30 September 2017 Over 25% off the Cee'd Sportswagen with broker 4 cars
Land Rover offers  Nts _lrcolourlogo _copy _new _bbda Copy (1) £2500 Finance Deposit Allowance on the Range Rover Evoque and £1500 Finance Deposit Allowance on the Range Rover Sport. Ends 30 September 2017 Discounts for Land Rover aren't massive, but Motor Parks offer 14% off the Discovery Sport.

Lexus offers

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£750 deposit contribution and two years free servicing on PCP offers for the CT 200h Sport and CT 200h F Sport. £1500 deposit contribution and two years free servicing on PCP offers for the the IS 300h Sport and IS 300h F Sport.
 

Ends 1 October 2017 Prices as low as £19,492 for a pre-reg 2017 Lexus CT 200h

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. Ends 30 September 2017 Get up to 27% off a Mazda6 saloon with New Car Dealer

Mercedes-Benz offers

Mercedes -benz -logo -300_100x 75 Copy

A variety of PCP deals across the range, with the C Class on offer for £299 per month. This PCP offer includes a £6693 deposit contribution and 4.9% APR.

Ends 30 September 2017 C Class are on offer for less than £21,000

MINI offers

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 A monthly payment of £199, with a deposit contribution of £1500 and 5.9% APR, could get you a MINI Cooper Clubman. Alternatively, a MINI Cooper is £169 per month, with a £1400 deposit contribution and 5.9% APR. Ends 30 September 2017 Savings of 16% can be found for MINI

Mitsubishi offers

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 A PCP plan on the Outlander PHEV offers monthly payment of £320 over three years, with a deposit contribution of £2500 and 5.9% APR (plus an additional £2500 from the government plug-in car grant). The ASX is available for £149 per month, with a £500 Finance Deposit Contribution and 0% APR. Ends 27 September 2017 Save 24% on an Outlander PHEV elsewhere

Nissan offers

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The Leaf is on offer for £179 per month, 0% APR and a  £2500 deposit contribution plus £4500 government grant. Micra available for £199 per month, 3.99% APR, £1600 deposit contribution, two years servicing for £249 and three years pan-European roadside assistance. 

Ends 1 October 2017

 

Save 34% on a Leaf and 29% on a Qashqai

Peugeot offers

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 Monthly payments of £260, with a £2000 deposit contribution and 1.9% APR, on a 308. Ends 30 August 2017 Discounts up to 29% on a 308 and a 208

Renault offers

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The new Clio is available for £129 per month, with 0% APR and two years free servicing. The Renault Captur is on offer for £159 per month, 0% APR and two years free servicing. Ends 30 September 2017 The Megane can be found for as low as £15,195

SEAT offers

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SEAT Ibiza FR for £209 per month, with £1500 deposit contribution and one year's free insurance (ends on 31 July 2017). Save an extra £500 when you test drive any new SEAT. Ends 2 October 2017 Savings can be made on this site of 28% on an Ibiza

Skoda offers

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The Yeti is available for £219 per month, with a £1500 deposit contribution, 0% APR and £500 worth of fuel (before 17 July 2017). The Fabia and the new Octavia are on offer with a £2000 deposit contribution and 2.9% - plus £500 free fuel before 17 July 2017. Ends 2 October 2017 Up to 25% off the Octavia 

Smart offers

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Deposit contribution of £1053 on a Smart ForTwo, with monthly payments of £139, no customer deposit and 0% APR. Ends 30 September 2017 Get the ForTwo Cabrio for as low as £11,315

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 30 September 2017 2017 Subaru Forester with 9 miles on the clock is as low as £27,495
Suzuki offers    59608suz Copy The Celerio is on a PCP offer for monthly payments of £79 over 48 months, with 5.9% APR. £165 per month with 5.9% APR for a new Baleno, includes deposit contribution up to £2000 (£2000 off the 1.2 SZ3 and £1500 on the SZ-T and SZ5). Ends 30 September 2017 The Baleno is available here for as low as £8786
Toyota offers   Logotoyota Copy

 The new Prius Plug-in and Prius+ are available with £1000 deposit contribution, two years/20,000 miles free servicing and 4.9% APR. The Yaris Hybrid, Auris Hybrid and RAV4 Hybrid are available with two years free servicing and 0% APR.

 

Ends 30 September 2017 24% discount on a Prius

Vauxhall offers

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 Get up to £2000 for your old car under Vauxhall's scrappage scheme. £1800 deposit contribution on a Corsa with Flexible PCP. Ends 2 October 2017 Save 33% on a Corsa elsewhere
Volkswagen offers   Vw _3544 Copy  £500 towards the deposit of a Volkswagen Up, with payments of £109 per month, 4.6% APR and the first two services for £149. With the Golf Event you can also get £1000 towards your deposit (until 24 July 2017). Ends 1 October 2017 Save 16% on a Golf with Drive the Deal
Volvo offers  59728-g -vol Copy  The Volvo V40 available at 3.9% APR Representative with £1000 deposit contribution and three years complimentary servicing when financed on Personal Contract Purchase with Volvo Car Credit; five years servicing on V40 for £599. Ends 30 September 2017  Not unusual to see the Volvo V40 below £16,000

*Updated July 2017

Car manufacturers offering car finance deals with free insurance:

Citroen is offering free insurance through SimplyDrive, Kia is offering free insurance on Picanto and Rio and SEAT is has one year free insurance on an Ibiza FR until 31 July 2017.

Car manufacturers offering car finance deals with zero percent finance:

Alfa Romeo, Citroen, Ford, Honda, Hyundai, Mazda, Mitsubishi, Nissan, Renault, Skoda and Toyota.

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
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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

 

Ask Honest John

Value my car

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.

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