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Cheap Car Finance & Advice

APR from 3.3%; 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 £8,930.17

Total cost of credit £1,430.17

£186.05

48 monthly payments

Apply now

Representative example

Borrowing £7,500 over 4 years with a representative APR of 25.4%, an annual interest rate of 25.4% (Fixed) and a deposit of £0.00, the amount payable would be £239.77 per month, with a total cost of credit of £4,008.96 and a total amount payable of £11,508.96.

CarFinance 247 Limited is acting as an independent credit broker

Universal Square, Devonshire Street North, Manchester, M12 6JH

 

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 October 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 from £7500 to £15,000

HSBC car loans

Hsbc -logo

£1000-£25,000 21.9% 3.3% Lowest APR available from £7000 to £15,000

Lloyds Bank car loans

Lloyds _personal _banking _logo (1)

£1000-£50,000 26.7% 3.9% Lowest APR available between from £7500 to £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% 3.49% TSB loans allow two repayment holidays per year

*Updated October 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

Volvo S90

Volov S90 D4 Momentum

If you're in the market for an upmarket and luxurious saloon then it's worth considering Volvo's sleek S90. Besides being a relaxing car to drive, it's remarkably quiet and comfortable – and it also offers good value for money. Volvo's currently offering a hefty deposit contribution of £3250, as well as a retailer contribution of £4193, in conjunction with 0% APR finance. The net result is monthly payments of just £279.

Our full review of the Volvo S90 here

Monthly payment: £279

Cash price: £36,460

Customer deposit: £5606

Dealer deposit contribution: £3250

Total deposit: £8856

Duration: 49 months/annual mileage: 10,000

Total amount of credit: £23,410 at 0% APR representative, Optional final payment: £12,875

Total payable by customer: £35,123, excess mileage fee: 14.9p per mile 

Fabia

Skoda Fabia SE 1.0 TSI 95PS

The Fabia has long been one of the top choices if you're looking for a practical, comfortable and inexpensive small hatchback. In SE specification it comes with plenty of creature comforts, too, including air conditioning, Bluetooth, DAB, rear parking sensors and a speed limiter – and its TSI engine is frugal and eager. Low 3.9% APR finance and a deposit contribution of £1750 helps keep monthly costs down to just £148. 

Our full review of the Skoda Fabia here

Monthly payment: £148

Cash price: £14,845

Customer deposit: £2500

Dealer deposit contribution: £1750

Total deposit: £4250

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £10,595 at 3.9% APR representative, Optional final payment: £4811

Total payable by customer: £16,025 excess mileage fee: 3p 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. It won't break the bank, either; Suzuki's currently offering a 0% APR finance deal that requires no deposit and costs £184 per month.

Our full review of the Suzuki Swift here

Monthly payment: £184

Cash price: £13,999

Customer deposit: £0

Dealer deposit contribution: £0

Total deposit: £0

Duration: 49 months/annual mileage: 8000

Total amount of credit: £13,999 at 0% APR representative, Optional final payment: £5149

Total payable by customer: £13,999, excess mileage fee: 4p per mile 

Qashqai 2

Nissan Qashqai 1.3 DIG-T 140 N-Connecta

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. Two years' servicing can also be bought for £249.

Our full review of the Nissan Qashqai here

Monthly payment: £189

Cash price: £24,045

Customer deposit: £6143

Dealer deposit contribution: £0

Total deposit: £6143

Duration: 37 months/annual mileage: 10,000

Total amount of credit: £17,902 at 0% APR representative, Optional final payment: £11,098

Total payable by customer: £24,045 excess mileage fee: 8p per mile 

 

Dacia Sandero

Dacia Sandero Essential TCe 90

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 Essential specification, mind, featuring the likes of air conditioning and a DAB radio. Lending it further appeal is the fact that, if you put down £1759, you can drive one for just £109 per month.

Our full review of the Dacia Sandero here

Monthly payment: £109

Cash price: £8595

Customer deposit: £1759

Dealer deposit contribution: £250

Total deposit: £2009

Duration: 36 months/annual mileage: 6000

Total amount of credit: £6586 at 4.9% APR representative, Optional final payment: £3405

Total payable by customer: £9338, excess mileage fee: 8p per mile 

*Updated October 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 monthly deals we currently know of:

The car The PCP finance deal

Dacia Sandero 

Dacia Sandero Access 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: £79

Cash price: £6995

Customer deposit: £1622

Dealer deposit contribution: £250

Total deposit: £1872

Duration: 36 months/annual mileage: 6000

Total amount of credit: £5123 at 4.9% APR representative, optional final payment: £2873

Total payable by customer: £7589, 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: £99

Cash price: £7999

Customer deposit: £1789

Dealer deposit contribution: £0

Total deposit: £1789

Duration: 49 months/annual mileage: 6000

Total amount of credit: £6211 at 6.9% APR representative, optional final payment: £2694

Total payable by customer: £9235, excess mileage fee: 4p 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 less than £100 a month over two years, following a customer deposit of £3250. 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: £98

Cash price: £11,345

Customer deposit: £3250

Dealer deposit contribution: £0

Total deposit: £3250

Duration: 24 months/annual mileage: 9000

Total amount of credit: £8095 at 0% APR representative, optional final payment: £5736

Total payable by customer: £11,345, 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 £2700, you could drive one for £99 a month.

Our full review of the Hyundai i10 here

Monthly payment: £99

Cash price: £9195

Customer deposit: £2700

Dealer deposit contribution: £500

Total deposit: £3200

Duration: 37 months/annual mileage: 8000

Total amount of credit: £5995 at 6.4% APR representative, optional final payment: £3336

Total payable by customer: £10,096, 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 £89 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: £89

Cash price: £9700

Customer deposit: £3000

Dealer deposit contribution: £650

Total deposit: £3650

Duration: 36 months/annual mileage: 10,000

Total amount of credit: £6050 at 5.9% APR representative, optional final payment: £3713

Total payable by customer: £10,569 excess mileage fee: 7.5p per mile

*Updated October 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 1.3 DIG-T 140 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 £189 and also includes three years' roadside assistance.

Our full review of the Nissan Qashqai here

Monthly payment: £189

Cash price: £24,045

Customer deposit: £6143

Dealer deposit contribution: £0

Total deposit: £6143

Duration: 37 months/annual mileage: 10,000

Total amount of credit: £17,902 at 0% APR representative, optional final payment: £11,098

Total payable by customer: £24,045, excess mileage fee: 8p per mile

Skoda Kodiaq

Skoda Kodiaq SE 1.4 TSI 150 PS 4x4 DSG (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 with all-wheel drive for under £300 a month.

Our full review of the Skoda Kodiaq here

Monthly payment: £294

Cash price: £29,240

Customer deposit: £5000

Dealer deposit contribution: £2000

Total deposit: £7000

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £22,240 at 5.2% APR representative, optional final payment: £11,875

Total payable by customer: £32,709, excess mileage fee: 6p per mile

Seat Arona

SEAT Arona SE Technology 1.0 TSI 95PS

The Arona is a smart-looking compact SUV that's good to drive and well equipped. SEAT offers a range of affordable 0% APR finance deals on the Arona, too, which don't require big deposits. Put down £1459, for example, and you can get an Arona for £199 a month. The annual mileage limit isn't restrictive, either, and the excess mileage fee is very reasonable.

Our full review of the SEAT Arona here

Monthly payment: £199

Cash price: £17,830

Customer deposit: £1459

Dealer deposit contribution: £0

Total deposit: £1459

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £16,371 at 0% APR representative, optional final payment: £7018

Total payable by customer: £17,830, excess mileage fee: 3.6p 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 £174. 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: £174

Cash price: £16,540

Customer deposit: £3300

Dealer deposit contribution: £1750

Total deposit: £5050

Duration: 36 months/annual mileage: 10,000

Total amount of credit: £11,490 at 5.9% APR representative, optional final payment: £6843

Total payable by customer: £18,172, excess mileage fee: 7.5p per mile

Tiguan Grey

Volkswagen Tiguan S 1.4 TSI 125PS 2WD

You can currently get a deposit contribution of £2000 on the second-generation Volkswagen Tiguan. This means, once you’ve put down £4250, you can drive the premium crossover for £249 a month. The annual mileage limit is a useful 10,000 miles, too, and the excess mileage rate is a tolerable 6p per mile.

Our full review of the Volkswagen Tiguan here

Monthly payment: £249

Cash price: £23,485

Customer deposit: £4250

Dealer deposit contribution: £2000

Total deposit: £6250

Duration: 48 months/annual mileage: 10,000

Total amount of credit: £17,235 at 5.7% APR representative, optional final payment: £8371

Total payable by customer: £26,354, excess mileage fee: 6p per mile

*Updated October 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 140

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. The current deal requires a hefty £4702 deposit contribution but monthly costs are a more sensible £189 – 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: £20,430

Customer deposit: £4702

Dealer deposit contribution: £2500

Total deposit: £7202

Duration: 36 months/annual mileage: 6000

Total amount of credit: £13,228 at 4.9% APR representative, optional final payment: £7999

Total payable by customer: £22,005, excess mileage fee: 8p per mile

Blue Dacia Sandero Stepway

Dacia Sandero Stepway Essential 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 £2151 but, after that, monthly payments are just £119. However, the annual mileage of this offer is limited to 6000.

Our full review of the Dacia Sandero Stepway here

Monthly payment: £119

Cash price: £9595

Customer deposit: £2151

Dealer deposit contribution: £250

Total deposit: £2401

Duration: 36 months/annual mileage: 6000

Total amount of credit: £7194 at 4.9% APR representative, optional final payment: £3722

Total payable by customer: £10,407, excess mileage fee: 8p per mile

Honda Jazz

Honda Jazz 1.5 i-VTEC Sport

If you want a supremely practical, reliable and versatile car then a Honda Jazz should be at the top of your list. It might be a small car but it's got more than enough room for four adults and it's also remarkably good to drive. Honda's currently offering a 0% finance deal on the Jazz, which has monthly costs of £199. The deal also benefits from a decent annual mileage limit and a low excess mileage rate.

Our full review of the Honda Jazz here

Monthly payment: £199

Cash price: £17,900

Customer deposit: £2977

Dealer deposit contribution: £0

Total deposit: £2977

Duration: 36 months/annual mileage: 10,000

Total amount of credit: £14,293 at 0% APR representative, optional final payment: £7759

Total payable by customer: £17,900, excess mileage fee: 4p per mile

Ceedsw

Kia Ceed Sportswagon 2 1.0 T-GDi 118bhp ISG Eco

The new Kia Ceed is a gratifying, comfortable and capable car that offers plenty of storage space – and the estate 'Sportswagon' version is even more practical. Kia's currently offering low 2.9% APR finance and a £1500 deposit contribution, resulting in low monthly costs of £181 for a spacious, flexible car.

Our full review of the Kia Ceed Sportswagon here

Monthly payment: £181

Cash price: £19,295

Customer deposit: £4050

Dealer deposit contribution: £1500

Total deposit: £5550

Duration: 36 months/annual mileage: 10,000

Total amount of credit: £13,745 at 2.9% APR representative, optional final payment: £8213

Total payable by customer: £20,266, excess mileage fee: 7.5p per mile

 Fiat 500X

Fiat 500X Ubran 1.6 E-torQ 110hp

The stylish Fiat 500X is a practical and frugal compact crossover – and it's an ideal alternative to a conventional family hatch. A new version has just arrived but there are already some good deals on offer, including a 0% APR finance deal which has a £500 deposit contribution. The customer deposit is quite hefty but monthly payments are a low £159.

Our full review of the Fiat 500 X here

Monthly payment: £159

Cash price: £16,995

Customer deposit: £4219

Dealer deposit contribution: £500

Total deposit: £4719

Duration: 37 months/annual mileage : 6000

Total amount of credit: £12,276 at 0% APR representative, optional final payment: £6552

Total payable by customer: £16,495 excess mileage fee: 6p per mile

*Updated October 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 £2500 on the Giulietta. A range of 0% finance deals are also available, although most require hefty 35% deposits.

Must be ordered by 31 December 2018 Elsewhere on this site, there are savings of 29% to be had on the Giulietta

Audi offers

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Audi is offering a range of substantial deposit contributions, including £7500 on the A6 Allroad Sport Quattro and £5000 on the A5 Coupe. Low 2.9% APR deals are also available on cars such as the A4 Black Edition.

Cars must be ordered by 2 January 2019. Save up to 20% off a new Audi A4

BMW offers

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You can get a new 218i Sport Active Tourer for £289 a month. The 4.9% APR deal requires a £4443 deposit and includes a dealer contribution of £1768. 0% APR is also being offered on several models, including the 6 Series and M4.

Interested? Download a brochure

 

Must be ordered by 31 December 2018 Get up to 25% off a new BMW 1 Series

Citroen offers

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Citroen is offering 0% APR finance on the C3. You'll have to put down £2996 but monthly payments are a sensible £149. Low 2.9% APR finance is also available on the new Cactus.

Interested? Download a brochure

Ends 31 December 2018 Good discounts can be found on the C4 Picasso, with up to 28% off

Dacia offers

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Get a new Dacia Sandero for £79 per month on finance, with a £1622 deposit contribution and 4.9% APR.

Interested? Download a brochure

Must be ordered by 7 January 2019 Used Sanderos start at around £5000

DS offers

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The DS 3 Connected Chic is available from £185 per month over 37 months on a 3.9% APR finance deal.

Ends 31 December 2018 You can get as much as 21% off a DS 3 here

Fiat offers

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0% APR finance deals are available on the 500X, 500 and 500S S-Design. You get a dealer contribution of £500 towards the 500X, too.

Must be ordered by 31 December 2018 Save up to 26% off the price of a new 500 here

Ford offers

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Ford has served up a 0% finance deal on the new Fiesta ST-Line, which commands monthly payments of £160.

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

Must be ordered by 31 December 2018

 

You can save up to 20% on a Fiesta on this site

 

Honda offers

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You can get a £1250 deposit contribution towards a new Civic, or £1000 towards a CR-V. A five-year service deal is also available, costing £599.

The new Jazz 1.5 I-Vtec Sport is currently £199 per month with a £2977 deposit, on a 36-month, 0% APR finance deal.

Ends 31 December 2018 The CR-V is on offer with as much as a 27% discount

Hyundai offers

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A range of deposit contributions are on offer, including £2000 on the i30 and £1500 on the Tucson and Santa Fe.

The i10 is available from £135 per month, on 6.4% APR finance with a £1500 deposit.

Ends 31 December 2018 You can save up to 18% off a new Hyundai i30 here

Jaguar offers

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The XF is available on 0% finance, with a deposit contribution of £5368 and monthly payments of £349.

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

Ends 31 December 2018 Save up to 20% off a new Jaguar XF
Kia offers  270110kia Copy


The new Ceed Sportswagon is available on a 2.9% APR finance scheme which costs £180 per month. The deposit is a hefty £4050 but you do get a contribution of £1500 from Kia.

Up to £3000 discount if you trade in your old car before the end of December. Scrappage scheme details here.

Ends 31 December 2018 Up to 23% off the Kia Optima
Land Rover offers  Nts _lrcolourlogo _copy _new _bbda Copy (1) Customers can benefit from a £3500 deposit contribution towards the Land Rover Evoque, on a 5.75% finance deal which costs £399 per month. Ends 31 December 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 20 December Prices as low as £21,000 for a nearly new 2018 Lexus CT 200h

Mazda offers 

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A variety of 0% and 4.1% APR deals on various models are on offer, including a range of deposit contributions – such as £1000 off the Mazda2 and £4000 off the Mazda6.

Ends 31 December 2018 Save up to 23% off the price of a new Mazda6

Mercedes-Benz offers

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The new Mercedes-Benz A-Class is available for £269 a month on a 6.1% APR finance deal.

Ends 31 December 2018 Take advantage of a 24% discount on a new C-Class

MINI offers

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A 5.9% APR deal on the three-door MINI One grants monthly costs as low as £199. MINI is also offering £400 deposit contributions on many models.

Ends 31 December 2018. Nearly new Minis start at around £12,000

Mitsubishi offers

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Mitsubishi is offering a deposit contributions of £2500 on its Outlander PHEV, £700 on its Mirage and £1500 on its new Eclipse Cross.

Ends 27 December 2018 Save 22% 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 three years' pan-European roadside assistance and three years' warranty.

Ends 6 January 2019

Save 31% on a Juke

Peugeot offers

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You can currently get a 108 Top! on a 4.9% APR finance deal, with a deposit of £3041 and a deposit contribution of £250. Monthly payments are £149. Tread carefully, though, as this finance deal is based on a 6000-mile allowance.

Ends 31 December 2018 Get 27% off a new 2008

Renault offers

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The Captur is available for £209 per month on a four-year 0% APR deal. You can also get a new Clio for £179 a month on a similar scheme.

Ends 7 January 2019. Save up to 26% off a new Clio

SEAT offers

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You can get the SEAT Ibiza SE Technology for £169 per month, thanks to a four-year 0% finance deal. SEAT is also offering 0% finance on all of its range.

Ends 2 January 2019. 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 £185 per month, with a £1750 deposit contribution and 3.9% APR - plus three years' of roadside assistance.

The Octavia is on offer for £269 per month, with a £2500 deposit contribution and 5.2% APR - plus the first two services free of charge.

Ends 2 January 2018 Save up to 26% 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 £922, requires a customer deposit of just £159 and has matching monthly costs of £159.

Ends 31 December 2018 Get 15% off the price of a new ForTwo

SsangYong offers

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The Tivoli is available for £225 per month on a five-year, 0% APR finance deal. The Korando is also available with 0% APR finance, clocking in at £229 per month. Ends 31 December 2018 You can pick up a used Tivoli for as little as £8300

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 31 December 2018 Low-mileage Levorgs can be had for around £18,000
Suzuki offers    59608suz Copy

There's a four-year 0% APR PCP deal on the new Swift that grants monthly payments of £125. A £2850 deposit is required.

The Baleno is available for £178 per month on 0% APR, or you could nab an Ignis for £133 a month on a 5.9% APR deal.

Must be delivered by 30 December Save up to 21% off a new Vitara
Toyota offers   Logotoyota Copy

 The Aygo is available on 0% finance for £129 per month, while the Auris is on offer for £199 per month.

Toyota is also offering savings of up to £4000 on their range of petrol and petrol-hybrid vehicles. The scrappage scheme runs until 20 December 2018.

Ends 20 December 2018 Get 13% 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 17 December 2018 Get up to 27% off a new Corsa
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 £109 per month, you could also get an Up on 0% finance. Again, the first two services can be covered for £159.

Ends 18 December 2018 Save 20% on a Golf with Drive the Deal
Volvo offers  59728-g -vol Copy

There's a 0% APR finance deal on the V40 which also benefits from a £3635 contribution. Monthly costs are £179 for the four-year deal but you'll have to put down a £2692 deposit..

Ends 31 October 2018 It's not unusual to see discounts of up to 30% on new V40s

*Updated October 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.

Car manufacturers offering car finance deals with zero percent finance:

Alfa Romeo, Audi, BMW, Citroen, Fiat, Ford, Honda, Jaguar, Mazda, MINI, Mitsubishi, Nissan, Renault, SEAT, SsangYong, Suzuki, Toyota, Volkswagen, 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 £8,930.17

Total cost of credit £1,430.17

£186.05

48 monthly payments

Apply now

Representative example

Borrowing £7,500 over 4 years with a representative APR of 25.4%, an annual interest rate of 25.4% (Fixed) and a deposit of £0.00, the amount payable would be £239.77 per month, with a total cost of credit of £4,008.96 and a total amount payable of £11,508.96.

CarFinance 247 Limited is acting as an independent credit broker

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