Car-related finance

Car financing: all the solutions put together by our team

Car purchase

The different financing methods

Whether it’s a new or used car, the purchase always involves significant expenses. In addition to the price of the car, there are also expenses related to insurance, technical maintenance and fuel. A car is therefore a major financial burden that must be taken into account by any household, . Thankfully, many financing methods exist today to make it easier for anyone to buy a personal car.

It’s good to know that the automotive market in the United Kingdom is now the second largest one in the European Union and also the second largest producer of premium vehicles after Germany. For anybody concerned about funding his/her car pruchase, the UK is currently benefiting from new types and very affordable financing conditions. If you are interested in purchasing an electric vehicle, visit

Cash purchase

Pay no interest whatsoever

The cash purchase of a vehicle consists of paying the total amount at once. More common in the second-hand market, this type of settlement is mainly intended for individuals with significant personal savings. The main advantage of a cash purchase is that it allows you to pay no interest. As such, it is the most advantageous solution from a strictly financial point of view. However, few individuals can afford such expenses without jeopardizing the financial equilibrium of their households. In terms of budget management, foresight is always a must!

Car loans

Bank loans dedicated to the purchase of a car

Personal loan

You can benefit from a personal loan from a bank, finance provider or building society if your credit rating is decent enough. The cost of your credit can usually be spread over one to seven years.

Hire purchase (HP)

It is a way of buying on finance. In this particular case, the loan is secured against the vehicle. You will have to pay a deposit of approximately 10%, then continue the rest by monthly payments.

Personal contract purchase (PCP)

It is comparable to a hire purchase agreement but you generally have to pay less monthly. It’s also important to know that the total money you’ll have to pay is usually higher.

Using a credit card

A credit card that pays all, or part, of your purchase will give you a good guarantee if a problem occurs. This applies once you pay at least £100 of the price by card and meet your monthly card payments.


In this method, you will pay the provider a monthly amount for using the car, with maintenance and servicing included in the price, provided that the mileage doesn’t exceed a particular limit.

Peer-to-peer loans

Also called social lending, this method allows individuals to borrow from each other without having to go through a bank or building societies. Peer-to-peer loans are very common.

Car purchase funding

Things to look out for

Monthly payment affordability

Risks related to non payment

Compare loan offers

Compare interest rates

Compare insurance offers

Take the car’s running costs into account

More affordable options

Car rental is the way to go!

Car rental is a booming sector nowadays, especially after gaining more and more ground in recent years. The number of motorists favouring car rental has been on the rise and offers focused on high-end vehicles are increasingly attracting private individuals. With car rental, customers benefit more easily from vehicles that were previously out of their reach, not to mention the new less conventional trends like P2P car rental. Car rental has also led to the launch of Lease Purchase (LP) contracts. By agreeing to pay monthly payments for 3 to 5 years, the customer becomes the owner of the vehicle at the end of the agreement.

Learn about car expenses

Running your car is equally as expensive!

A car is expensive! It is better to make room in your budget and plan some expenses before buying one: gas, car insurance, annual fees, basic spare parts and emergency repairs. Also, making the car use exorbitantly expensive and introducing systematically hostile measures against it have made it even less affordable. Here, we help you deal with you car’s daily, monthly and yearly expenses…

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