What's car finance?
Car finance means borrowing money to pay for a car.
You'll agree to repay this over an agreed timeframe instead of paying for the car in one lump sum.
There are different types of car finance, and each has its own terms and payment plans.
Explore our car finance options
Hire purchase
You can pay an optional deposit with a dealer, than spread the remaining cost of the car over an agreed period, usually from 24 up to 84 months.
You'll own the car at that end of that time frame, once you've made all your payments and paid an Option to Purchase (OTP) fee of £1.
GET HIRE PURCHASECar loan
An unsecured loan that you can use on a new or used car. We agree on how much you can borrow, then you'll pay it back with a fixed amount of interest. You own the car from the start. We offer loans between £1,000 and £40,000.
GET A CAR LOANHire purchase vs car loan: what’s best for me?
Hire purchase could be for you if you prefer to pay lower monthly payments.
Unsecured loans are a better option if you want to own the car immediately.
Compare both options below:
| Hire Purchase | Unsecured car loan | |
|---|---|---|
| Own the car from start | ||
| Mileage limits | ||
| Risk of repossession | ||
| Can modify or sell car | ||
| Can impact credit score | ||
| Lower monthly payments |
Examples of how much car finance costs
Here are some examples of how much you could borrow, over how long, and how much you’ll need to repay.
Car loans representative example
If you borrow £10,000 over 60 months, your monthly repayments will be £223.43. That means you'll pay back £13,405.80 in total.
This is based on a representative APR of 12.90% and a fixed annual interest rate of 12.19%.
Hire purchase representative example
If you borrow £15,000 over 60 months, your monthly repayments will be £314.86. Your final monthly payment will be £315.86, which includes the £1 Option to Purchase Fee.
That means you’ll pay back £18,892.60 in total.
This is based on a representative APR of 9.90% and a fixed annual interest rate of 9.48%.
How we do car finance
It's car finance from a brand you can trust.
You know us as one of the biggest motor insurers in the UK, and we've taken that experience into our car finance too.
Find your car
Let us know what car you’re buying, or access over 150,000 cars via our Marketplace.
Access verified dealerships
We partner with verified dealers across the UK.
We don't charge arrangement fees
Our car loans and hire purchase have no hidden charges, like arrangement fees.
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Join over a thousand positive reviews for our service.
Everything you need before finding a car
We’ll pre-approve you for the loan amount and interest before you find your next car.
Manage your payments online
MyAccount makes managing your payments, transactions and details easy.
How to apply for car finance
Decide your finance
Decide what type of car finance you want.
Choose your terms
You tell us how much you'd like to borrow and over how long.
Get your quote
Get your quote, get pre-approved, submit an application and sign the agreement.
What we need from you
Normally, we ask for:
- bank details
- proof of address
- a photo or scan of your driving license details
We could also ask for:
- payslips
- proof of address
- a photo or scan of your driving license
- bank statements
- proof of employment
