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.

CarFinance 247 Limited is acting as an independent credit broker

 

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% £6,472.02 £1,472.02 £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 19.10% £25,888.09 £5,888.09 £719.11

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 6.90% £1,106.05 £106.50 £30.74
£5000 36 months 6.90% £5,323.48 £532.48 £153.68
£10,000 36 months 6.90% £11,064.96 £1,064.96 £307.36
£15,000 36 months 6.90% £16,597.43 £1,597.43 £461.04
£20,000 36 months 6.90% £22,129.91 £2,129.91 £614.72

*Last updated July 2018, 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 20.9% 5.5% Lowest APR available between £7500 and £15,000

HSBC car loans

Hsbc -logo

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

Lloyds Bank car loans

Lloyds _personal _banking _logo (1)

£1000-£50,000 26.7% 3.9% Lowest APR available between £7500 and £25,000

Nationwide car loans

Logo 2xtrans (1)

£1000-£25,000 15.0% 4.2% 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 29.8% 3.5% TSB loans allow two repayment holidays per year

*Updated July 2018, 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

3 Series GT

BMW 320d M Sport Gran Turismo

This version of the 3 Series offers improved interior space and storage, along with a more easily accessed boot, compared to the standard saloon. Its softer ride also makes it better for longer trips. A hefty deposit contribution from BMW helps keeps costs down; if needed, a similar but slightly more expensive deal is also available on the even more practical estate.

Our full review of the BMW 3 Series GT here

Monthly payment: £319

Cash price: £37,570

Customer deposit: £5589

Dealer deposit contribution: £6787

Total deposit: £12,376

Duration: 47 months/annual mileage: 10,000

Total amount of credit: £25,193 at 1.9% APR representative, Optional final payment: £11,592

Total payable by customer: £38,961, excess mileage fee: 9.5p per mile 

Seat Ibiza New (1)

SEAT Ibiza SE Technology 1.0 TSI  95PS

The new SEAT Ibiza is a capable and smartly styled hatchback, and it also packs an equally impressive 1.0 TSI engine. This deal includes a deposit contribution of £1500 and also comes with one year's free insurance. Take a test drive and you can get an extra £500 off (until 1 October 2018).

Our full review of the new SEAT Ibiza here

Monthly payment: £199

Cash price: £16,215

Customer deposit: £2409

Dealer deposit contribution: £1500

Total deposit: £3909

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £12,306 at 6.5% APR representative, Optional final payment: £5199

Total payable by customer: £16,971, excess mileage fee: 3.6p per mile 

 Suzuki Swift

Suzuki Swift 1.0 Boosterjet SZ-T

This compact hatch is great fun to drive, in part thanks to its eager and efficient Boosterjet engine. It's easy to live with, too, as it has a spacious and comfortable interior. Suzuki's currently offering a 0% APR finance deal, along with a deposit contribution of £500, which helps bring monthly costs down to £159.

Our full review of the Suzuki Swift here

Monthly payment: £159

Cash price: £13,999

Customer deposit: £718

Dealer deposit contribution: £500

Total deposit: £1218

Duration: 49 months/annual mileage: 8000

Total amount of credit: £12,781 at 0% APR representative, Optional final payment: £5149

Total payable by customer: £13,999, excess mileage fee: 7p per mile 

Qashqai 2

Nissan Qashqai 1.2 DIG-T 2WD Acenta Tech Pack

The Nissan Qashqai is one of the UK’s most popular cars and there are a range of affordable finance deals – including this 0% APR offering. You'll have to put down a fairly hefty deposit but, after that, monthly costs are a sensible £189. The Qashqai also comes with three years' roadside assistance.

Our full review of the Nissan Qashqai here

Monthly payment: £189

Cash price: £22,480

Customer deposit: £5499

Dealer deposit contribution: £0

Total deposit: £5499

Duration: 37 months/annual mileage: 10,000

Total amount of credit: £16,981 at 0% APR representative, Optional final payment: £10,177

Total payable by customer: £22,480 excess mileage fee: 8p per mile 

 

Dacia Sandero

Dacia Sandero Ambiance SCe 75

The Dacia Sandero is a no-nonsense hatchback that's ideal if you're looking for straightforward, inexpensive motoring. It's not devoid of creature comforts in Ambiance specification, mind, featuring the likes of air conditioning and a DAB radio. Lending it further appeal is the fact that, if you put down £1468, you can drive one for just £99 per month.

Our full review of the Dacia Sandero here

Monthly payment: £99

Cash price: £7795

Customer deposit: £1468

Dealer deposit contribution: £250

Total deposit: £1718

Duration: 36 months/annual mileage: 6000

Total amount of credit: £6077 at 4.9% APR representative, Optional final payment: £3203

Total payable by customer: £8485, excess mileage fee: 8p per mile 

*Updated July 2018

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 

Dacia Sandero Ambience SCe 75

The Dacia Sandero is a refreshingly straightforward and affordable car, compared 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 – which makes it a great choice for the budget-conscious buyer.

Our full review of the Dacia Sandero here 

Monthly payment: £99

Cash price: £7795

Customer deposit: £1454

Dealer deposit contribution: £250

Total deposit: £1704

Duration: 36 months/annual mileage: 6000

Total amount of credit: £6091 at 4.9% APR representative, optional final payment: £3220

Total payable by customer: £8487, 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’s claimed to average 65.7mpg and is cheap to maintain. All in, it's an affordable little runabout and a great choice for those trying to keep costs low. It doesn’t have much kit in SZ2 trim, which is featured in this deal, but you do get the basics and a DAB radio.

Our full review of the Suzuki Celerio here 

Monthly payment: £89

Cash price: £7499

Customer deposit: £1740

Dealer deposit contribution: £0

Total deposit: £1740

Duration: 49 months/annual mileage: 6000

Total amount of credit: £5759 at 5.69% APR representative, optional final payment: £2465

Total payable by customer: £8477, excess mileage fee: 7p per mile

Ford Ka Plus

Ford Ka+ Studio 1.2 Ti-VCT 70PS

The Ka+ is the cheapest new Ford and a serviceable little hatchback to boot. It isn't the most exciting car to drive, by any stretch, but it won’t break the bank. The Ka+ is available on a PCP deal that costs £99 a month over two years, following a customer deposit of £3579. That’s a hefty amount to put down but this Ka+ does come with lots of kit, including a DAB radio, air-con and cruise control.

Our full review of the Ford Ka+ here

Monthly payment: £99

Cash price: £11,100

Customer deposit: £3579

Dealer deposit contribution: £0

Total deposit: £3579

Duration: 24 months/annual mileage: 9000

Total amount of credit: £7521 at 0% APR representative, optional final payment: £5145

Total payable by customer: £11,100, excess mileage fee: 7.2p per mile

I 10

Hyundai i10 S 1.0 66PS

The i10 is a handsome hatchback that offers up an impressive amount of space and a good quality interior. It’s also decent to drive and ultimately, as a result of its impressive credentials, it won our Most Popular City Car award in 2017. Go for a three-year PCP deal and, after putting down £2600, you could drive one for £99 a month.

Our full review of the Hyundai i10 here

Monthly payment: £99

Cash price: £8995

Customer deposit: £2600

Dealer deposit contribution: £250

Total deposit: £2850

Duration: 36 months/annual mileage: 10,000

Total amount of credit: £6145 at 4.9% APR representative, optional final payment: £3294

Total payable by customer: £9700, excess mileage fee: 9p per mile

Kia Picanto (2) (2)

Kia Picanto 1.0 66PS

The Picanto is a smart-looking, capable small car – and an very reasonably priced one at that. This deal on a five-door ‘2’ model, with air-con, features monthly payments of £97 over three years. You'll have to stump up a deposit of £3000 but, should you decide that you want the car at the end of the contract, you’ll benefit further from the remainder of the Kia’s seven-year warranty.

Our full review of the Kia Picanto here

Monthly payment: £97

Cash price: £10,855

Customer deposit: £3000

Dealer deposit contribution: £750

Total deposit: £3750

Duration: 36months/annual mileage: 8000

Total amount of credit: £7105 at 4.9% APR representative, optional final payment: £4467

Total payable by customer: £11,713 excess mileage fee: 7.5p per mile

*Updated April 2018

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

PCP Car Finance: Crossovers for under £250 a month

It’s easy to see why crossovers are appealing. After all, they blend the versatility of an estate with the ease of access, looks and height of an SUV – but many don’t have the same overly large footprint. We've picked the best five crossover PCP deals, all of which cost under £250 per month (and under £200 per month, in some cases).

The car The PCP finance deal

Nissan Qashqai

Nissan Qashqai 1.2 DIG-T 2WD N-Connecta

The Qashqai is one of the UK’s most popular cars and there are a number of finance deals available on this practical and competent Nissan. If you can stomach the substantial deposit, you can opt for Nissan’s 0% finance deal – which has monthly payments of just £199 and also includes two years’ free servicing.

Our full review of the Nissan Qashqai here

Monthly payment: £199

Cash price: £24,260

Customer deposit: £6352

Dealer deposit contribution: £0

Total deposit: £6352

Duration: 36 months/annual mileage: 10,000

Total amount of credit: £17,908 at 0% APR representative, optional final payment: £10,744

Total payable by customer: £24,260, excess mileage fee: 8p per mile

Skoda Kodiaq

Skoda Kodiaq SE 1.4 TSI 125 PS (7 seats)

The Skoda Kodiaq is everything a family car should be. It's comfortable, spacious, well-equipped, practical and safe. As a result, it's almost impossible to pick fault with. If you need seven seats, then you’re in luck as well – because you can get a seven-seat SE for £248 a month.

Our full review of the Skoda Kodiaq here

Monthly payment: £248

Cash price: £24,930

Customer deposit: £4600

Dealer deposit contribution: £2000

Total deposit: £6600

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £18,330 at 6.3% APR representative, optional final payment: £10,224

Total payable by customer: £28,480, excess mileage fee: 6p per mile

Peugeot 2008 (1)

Peugeot 2008 Allure Premium 1.2 Puretech 82PS

The 2008 is a smart-looking compact crossover that will meet the demands of those seeking a practical, smaller car. There are some great deals available, too; put down £2582 and you could drive an Allure Premium model for £184 a month. Just be mindful of the offer’s 6000-mile annual limit.

Our full review of the Peugeot 2008 here

Monthly payment: £184

Cash price: £18,650

Customer deposit: £2582

Dealer deposit contribution: £2300

Total deposit: £4882

Duration: 48 months/annual mileage: 6000

Total amount of credit: £13,888 at 2.9% APR representative, optional final payment: £6386

Total payable by customer: £19,938, excess mileage fee: 6p per mile

Kia Stonic

Kia Stonic 2 1.4 MPi 98bhp

The Kia Stonic is a smart crossover that’s easy to live with, pleasant to drive and cheap to run. At the moment, Kia’s offering a three-year PCP deal with monthly payments of just £159. The Stonic’s also backed by a seven-year warranty, so if you choose to buy it afterwards then it should remain trouble-free for years to come. It comes with plenty of kit, too.

Our full review of the Kia Stonic here

Monthly payment: £159

Cash price: £16,300

Customer deposit: £3300

Dealer deposit contribution: £1500

Total deposit: £4800

Duration: 36 months/annual mileage: 10,000

Total amount of credit: £11,500 at 4.9% APR representative, optional final payment: £7155

Total payable by customer: £17,684, excess mileage fee: 7.5p per mile

Tiguan Grey

Volkswagen Tiguan S 1.4 TSI 125PS

You can currently get a deposit contribution of £2000 on the second-generation Volkswagen Tiguan. This means, once you’ve put down £3867, you can drive the premium crossover for £240 a month. The annual mileage limit is a useful 10,000 miles, too, and the excess mileage rate is a reasonable 6p per mile.

Our full review of the Volkswagen Tiguan here

Monthly payment: £249

Cash price: £23,255

Customer deposit: £3867

Dealer deposit contribution: £2000

Total deposit: £5867

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £17,387 at 5.4% APR representative, optional final payment: £8432

Total payable by customer: £26,012, excess mileage fee: 6p per mile

*Updated April 2018

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

Red Renault Kadjar 

Renault Kadjar Expression+ TCe 130

The Kadjar is Renault’s stylish answer to the Nissan Qashqai. It’s spacious, good to drive and comes with a decent amount of kit, making it an ideal choice for families. Thanks to a £3000 deposit contribution, you could drive one away for £189 a month – but you’ll have to bear in mind the 6000-mile limit on this particular deal.

Our full review of the Renault Kadjar here

Monthly payment: £189

Cash price: £19,790

Customer deposit: £4097

Dealer deposit contribution: £3000

Total deposit: £7097

Duration: 36 months/annual mileage: 6000

Total amount of credit: £12,693 at 4.9% APR representative, optional final payment: £7379

Total payable by customer: £21,280, excess mileage fee: 8p per mile

Blue Dacia Sandero Stepway

Dacia Sandero Stepway TCe 90

If you want something practical and straightforward then it’s worth considering a Dacia Sandero Stepway. It also looks a little more rugged and appealing than the basic Sandero hatchback, adding to its appeal. You’ll have to put down £2521 but, after that, monthly payments are just £109. The annual mileage of this offer is limited to 6000, however.

Our full review of the Dacia Sandero Stepway here

Monthly payment: £109

Cash price: £9595

Customer deposit: £2521

Dealer deposit contribution: £250

Total deposit: £2771

Duration: 36 months/annual mileage: 6000

Total amount of credit: £6824 at 4.9% APR representative, optional final payment: £3680

Total payable by customer: £10,367, excess mileage fee: 8p per mile

Blue Skoda Rapid Spaceback

Skoda Rapid Spaceback SE Sport 1.0 TSI 95PS

The Rapid Spaceback’s a competent and efficient car that, while not liable to set your pulse racing, makes for an ideal family hatchback. There’s some good finance deals available, too; put down £3639 and, over four years and 40,000 miles, you’ll pay £199 a month. You get a £1500 deposit contribution from Skoda, too.

Our full review of the Skoda Rapid Spaceback here

Monthly payment: £199

Cash price: £17,180

Customer deposit: £3639

Dealer deposit contribution: £1500

Total deposit: £5139

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £12,041 at 6.2% APR representative, optional final payment: £4716

Total payable by customer: £19,217, excess mileage fee: 3.6p per mile

Red Nissan Pulsar

Nissan Pulsar N-Connecta DIG-T 115

The Pulsar’s an oft-overlooked hatchback but, if you’re not seeking driving or styling thrills, it’s worth considering. Despite being a little drab, it’s a practical, comfortable and relaxing car that comes with lots of kit. Monthly rates start at £189, over 36 months, with a deposit contribution of £1750 and 3.49% APR. 

Our full review of the Nissan Pulsar here

Monthly payment: £189

Cash price: £17,930

Customer deposit: £3921

Dealer deposit contribution: £1750

Total deposit: £5671

Duration: 36 months/annual mileage: 9000

Total amount of credit: £12,259 at 3.49% APR representative, optional final payment: £6450

Total payable by customer: £18,925, excess mileage fee: 8p per mile

 Red Vauxhall Astra

Vauxhall Astra 1.4 SRI

The Vauxhall Astra isn’t the most exciting car around but it’s decent to drive, easy to live with, economical and good value for money – which is why the recently revamped model is so popular as a company car. A short 25-month 0% finance deal grants monthly payments of £180 but you will have to put down a fairly hefty £5980. 

Our full review of the Vauxhall Astra here

Monthly payment: £180

Cash price: £18,419

Customer deposit: £5980

Dealer deposit contribution: £0

Total deposit: £5980

Duration: 25 months/annual mileage : 6000

Total amount of credit: £12,439 at 0% APR representative, optional final payment: £8119

Total payable by customer: £18,419 excess mileage fee: 9p per mile

*Updated April 2018

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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Numerous deposit contributions are on offer, including £3500 on the Stelvio, £3000 on the Giulia and £2250 on the Mito. A 4.9% finance deal is available on the Mito, costing upwards of £169 a month.

Must be registered by 31 December 2018 Elsewhere on this site, there are savings of 21% to be had on the Mito

Audi offers

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Audi is offering a range of substantial deposit contributions, including £3000 on the A3 Sportback, £5700 on the A7 Sportback and £7500 on the A6 allroad quattro. A 0% finance deal is also available on the new A8.

Cars must be ordered by 30 September 2018 Biggest savings on the Audi TT

BMW offers

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Monthly payments of £269 over 48 months will get you a BMW 1 Series (on 4.9% APR), with a £1642 dealer contribution. 0% APR is also being offered on several models, including the 6 Series and M4.

Interested? Download a brochure

 

Must be registered by 31 December 2018 Get a new 1 Series for as little as £18,405

Citroen offers

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Citroen is offering 4.9% APR finance and a £500 deposit contribution on the new C3 Aircross SUV. Monthly payments, following a customer deposit of £2426, are £179. You can also get 0% finance on the C1 and C3.

Interested? Download a brochure

Ends 30 September 2018 Good discounts can be found on the C4 Picasso, with up to 22% off

Dacia offers

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Get a new Dacia Duster for £129 per month on finance, with a £250 deposit contribution and 5.9% APR.

Interested? Download a brochure

Must be ordered before 1 October 2018 Don't expect huge discounts - these are cheap cars to start with - but 5% is possible

DS offers

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The DS 3 Connected Chic is available from £169 per month over 36 months, and benefits from 3.9% APR and a £950 deposit contribution.

Ends 30 September 2018 You can get as much as 22% off a DS 3 here

Fiat offers

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You can get a three-year PCP deal on a new Fiat 500X Mirror edition. The deal benefits from 0% APR, a deposit contribution of £500 and monthly payments of £192.

Must be ordered by 30 September 2018 Save up to 27% off the price of a new 500X here

Ford offers

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Ford has served up a 0% finance deal on the new Fiesta Zetec, which commands monthly payments of £170.

Need something bigger? The Kuga is also available with 0% finance and costs £279 per month.

Ends 30 September 2018

 

You can save up to 31% on a Focus on this site

 

Honda offers

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You can get a £750 deposit contribution towards a new Civic or Jazz, or £1000 towards a CR-V – as well as a series of 'Test Drive Incentive' discounts. A five-year service deal is also available, costing £599.

The new Civic 129PS Turbo is currently £189 per month with a £3878 deposit, on a 36-month, 5.9% APR finance deal.

Ends 31 August 2018 The CR-V is on offer with as much as a 28% discount

Hyundai offers

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A range of deposit contributions are on offer, including £2000 on the i30, £2500 on the Tucson and £5000 on the Santa Fe.

The i10 is available from £134 per month, on 5.9% APR finance with a £1250 deposit.

Ends 30 September 2018 Smaller Hyundais, like the i30, are on sale for less than £16,500 - a 26% discount

Jaguar offers

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The XF is available on 3.9% finance, with a deposit contribution of £3300 and monthly payments of £399.

Jaguar is also offering a hefty deposit contribution of £12,000 on the XJ.

Ends 30 September 2018 If you act fast, you can find an XF diesel for under £26,000
Kia offers  270110kia Copy

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

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

Ends 30 September 2018 Up to 24% off the Kia Optima
Land Rover offers  Nts _lrcolourlogo _copy _new _bbda Copy (1) Get a £3000 deposit allowance on the Land Rover Discovery Sport, on a 5.9% finance deal that costs £329 per month. Ends 30 September 2018 Save up to 16% off a new Discovery Sport

Lexus offers

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 The IS300h Executive Edition is available on a 1.9% APR finance deal with a deposit contribution of £2000. Monthly costs for the 42-month deal are £299.

 

Ends 30 September. Prices as low as £20,491 for a nearly new 2018 Lexus CT 200h

Mazda offers 

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A variety of 0% and 3.9% APR deals on various models, including a range of deposit contributions – such as £1000 off the Mazda2 and £1500 off the MX-5.

Ends 30 September 2018 Get a CX-3 for as little as £15,207

Mercedes-Benz offers

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Mercedes is offering a deposit contriubtion of £3,452 on the new C-Class. Monthly payments for the 5.3% APR deal work out at £319.

Ends 30 September 2018 Take advantage of a 29% discount on a C-Class

MINI offers

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You can get a deposit contribution of £550 on the Cooper S All4 Countryman. The 2.9% APR finance deal costs £259 a month.

Ends 30 September 2018 Savings of 15% can be found for the Countryman

Mitsubishi offers

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A PCP plan on the Outlander PHEV offers monthly payment of £250 over 42 months, with a deposit contribution of £2500 and 5.9% APR (plus an additional £2500 from the government plug-in car grant).

Ends 26 September 2018 Save 25% on an Outlander elsewhere

Nissan offers

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The Qashqai is available for £189 per month, on 0% APR. It also comes with three years' pan-European roadside assistance and a three-year warranty.

The new Micra is available for £149 per month, also on 0% APR. You also get two years' free servicing, three years' pan-European roadside assistance and three years' warranty.

Ends 03 September 2018

Save 32% on a Juke

Peugeot offers

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You can currently get a 2008 SUV on a 2.9% APR finance deal, with a deposit of contribution of £1500 and monthly payments of £169. Tread carefully, though, as this finance deal is based on a 6000-mile allowance.

Ends 1 October 2018 Get 19% off a new 2008

Renault offers

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The Captur is available for £199 per month on a four-year 0% APR deal. You can also get a new Clio for £179 a month on a similar scheme. A further £1000 discount is offered if you trade in your old car.

Ends 31 August 2018 The Clio is on offer for under £9500

SEAT offers

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Get the new SEAT Ibiza for £199 per month, with £1500 deposit contribution and one year's free insurance.

Save an extra £500 when you test drive an Ibiza, Leon or Ateca.

Ends 1 October 2018 Savings can be found on this site. with as much as 35% off the Seat Toledo

Skoda offers

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The Fabia is on offer for £179 per month, with a £2000 deposit contribution and 3.9% APR - plus three years' of roadside assistance.

The Octavia is on offer for £309 per month, with a £2500 deposit contribution and 5.2% APR - plus the first two services free of charge.

Ends 1 October 2018 Save up to 20% off a Skoda Superb

Smart offers

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Smart is currently offering a 2.0% APR finance deal on the ForFour. It includes a deposit contribution of £1214, requires a customer deposit of just £159 and has matching monthly costs of £159.

Ends 30 September 2018 Get 15% off the price of a new ForTwo

SsangYong offers

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The Tivoli is available for £179 per month on a four-year, 0% APR finance deal. The Korando is also available with 0% APR finance, clocking in at £199 per month. Ends 30 September 2018 You can pick up a used Tivoli for as little as £8500

Subaru offers

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A variety of deposit contributions from Subaru are on offer, including up to £1000 off a Forester. That particular 49-month deal will cost you £357 a month at 6.7% APR. Ends 30 September 2018 Low-mileage Levorgs can be had for under £18,000
Suzuki offers    59608suz Copy

There's a four-year PCP deal on the new Swift that features monthly payments of £149, as well as 0% APR and a £239 deposit.

The Vitara is available for £179 per month on 0% APR, or you could nab an Ignis for £125 a month.

Ends 30 September 2018 Save up to 22% off a new Vitara
Toyota offers   Logotoyota Copy

 The Aygo is available on 0% finance for £139 per month, while the Auris is on offer for £199 per month and comes with a £1500 deposit contribution.

Toyota is also offering savings of up to £4000 on their range of petrol and petrol-hybrid vehicles. The scrappage scheme runs until 30 September 2018.

Ends 30 September 2018 Get 12% discount on a Prius

Vauxhall offers

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Vauxhall is offering five-year 0% APR finance deals on all of its models, including the new Insignia Grand Sport and Astra. Ends 31 July A Vauxhall Viva is on offer on this site for less than £8500
Volkswagen offers   Vw _3544 Copy

 Get £3000 towards the deposit of a new Volkswagen Arteon, with payments of £299 per month, 4.5% APR and the first two services for £159.

For £100 per month, you could also get an Up on 0% finance. Again, the first two services can be covered for £159.

Ends 31 August 2018 Save 23% on a Passat with Buy A Car
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There's a 0% APR finance deal on the V40 which also benefits from a £3139 dealer contribution. Monthly costs are £199 for the four-year deal but you'll have to put down a not-insignificant £4704.

Ends 30 September 2018 It's not unusual to see the Volvo V40 below £16,500

*Updated July 2018

Car manufacturers offering car finance deals with free insurance:

Citroen is offering a 'SimplyDrive' package that includes three years' insurance, road tax, servicing and breakdown cover. The same deal applies to the DS range, too.

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

The new SEAT Ibiza comes with one year's free insurance for drivers over 18 years old. This offer ends on 1 October 2018.

Volkswagen is offering a year's free insurance on new Polos registered by 30 September. Drivers must be aged 18 and up and have at least a year of driving experience.

Car manufacturers offering car finance deals with zero percent finance:

Audi, BMW, Citroen, DS, Fiat, Ford, Honda, Jaguar, Mazda, Nissan, Renault, SEAT, SsangYong, Suzuki, Toyota, Vauxhall, Volvo.

 

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.

CarFinance 247 Limited is acting as an independent credit broker