From £3,000 To £100,000.
Over 90,000 vehicles to choose from.
Get fast decisions on HP (Hire Purchase) & PCP (Personal Contract Purchase).
No Deposit Required.
Buy your car from any verified UK dealer.
Representative 19.8% APR. No impact on your credit score. Our partner uses a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score. ?We're partnered with Car Finance 24/7. As an Introducer Appointed Representative of Carfinance247 Limited (FCA FRN: 653019), we receive a commission if you purchase finance products through the link above. We do not provide advice or make recommendations.
Plus more FCA-regulated lenders available
Car finance is the most common way to buy a car in the UK. In the 12 months to March 2026, over 2.1 million consumers financed a car through point-of-sale finance, with a combined value of nearly £42 billion. The new car finance market grew 8% year on year, while the used car market remained broadly stable.
2.1m
Cars financed by consumers in the 12 months to March 2026
85%
Of private new car registrations bought on finance
£42bn
Total value of consumer car finance advances in the 12 months to March 2026
704,216
↑ 8% vs previous year
1,400,496
↓ 1% vs previous year
£20.1bn
↑ 8% vs previous year
£21.9bn
↑ 3% vs previous year
The chart below shows how monthly consumer car finance volumes have changed year on year, based on FLA data. The market contracted through much of 2024, before returning to consistent growth from mid-2025 onwards. December 2025 saw the strongest growth in almost four years.
Source: Brumble analysis of Finance & Leasing Association (FLA) data
The example below shows what a car finance deal could cost for a £15,000 vehicle over 60 months, based on a good credit profile. Use the toggle to compare PCP and HP side by side. The rate you are offered will depend on your individual circumstances.
£237.02
per month
With PCP, you have three options at the end of the agreement: return the car, pay the optional final payment of £6,854.36 to keep it, or use any equity as a deposit on a new deal. Annual mileage limit of 8,000 miles applies, with excess mileage charged at 8p per mile.
£84.58/mo cheaper
PCP monthly saving vs HP
£1,532.54 more
PCP total cost vs HP
Ownership
HP: yours at end. PCP: optional.
Representative Example: Borrow £12,000 over 5 years with a £0 deposit. Representative 19.8% APR fixed rate. Monthly payment: £306.04. Option to purchase fee £10 payable. Total cost of credit: £6,372.40. Total amount repayable: £18,372.40.
Credit is subject to status.
Use the calculator below to work out representative examples based on your car value.
Wondering how much car finance you can get on your salary? Use our calculator to estimate monthly payments based on the car price, your credit grade and preferred term length.
Car finance lets you spread the cost of a vehicle into affordable monthly payments, so you can drive the car you want without paying the full price upfront.
Car finance lets you get behind the wheel without saving up the full purchase price. Spread the cost into fixed monthly payments over 2-5 years, with options from £3,000 to £100,000.
Rather than using your savings to buy a car outright, car finance lets you hold onto your cash for emergencies, other expenses, or investment. Many deals are available with no deposit.
Without finance, your budget limits you to what you can afford today. With HP or PCP, you can access newer, safer, and more reliable vehicles that might otherwise be out of reach.
Applying for car finance does not have to be complicated. A soft search checks what you could be eligible for with no impact on your credit score. If you decide to proceed with a full application, a hard credit search will be carried out by the lender, which may affect your credit score.
Get your car finance decision in minutes. See what you could borrow using a soft search.
Buy from any verified dealership or browse over 95,000 cars from dealers in our partners' network.
Everything will be handled for you, just arrange a time to collect your car.
You can also use car finance to refinance an existing agreement if you want to reduce your monthly payments or switch to a better deal. Check your eligibility via Brumble to see what options are available.
Before refinancing, there are a few things to consider. A hard credit search will be carried out if you proceed with a new application, which may cause a temporary dip in your credit score. Replacing an existing agreement with a new one could lower the average age of your credit accounts, which some lenders view as a factor. Applying to several lenders in a short period can result in multiple hard searches, so it is worth being selective. And while refinancing may reduce your monthly payments, extending the term over a longer period may increase the total amount of interest you pay overall.
Start NowTwo ways to finance a car, but they work quite differently. Here is how they compare on the things that matter most.
| HP (Hire Purchase) | PCP (Personal Contract Purchase) | |
|---|---|---|
| Monthly payments | Higher, as you are paying off the full value | Lower, as you only cover the depreciation |
| Own the car? | Yes, automatically after your final payment | Optional, pay the balloon payment to keep it |
| Mileage limits | No limits | Yes, excess charges apply if you go over |
| Deposit | Usually around 10% (£0 options available) | Usually around 10% (£0 options available) |
| Term length | 12 to 60 months | 24 to 48 months |
| End of deal | The car is yours to keep, sell, or trade in | Hand back, pay to keep, or part-exchange |
| Total cost | Often cheaper overall | Can cost more due to interest on the balloon |
| Bad credit? | More accessible, as the car acts as security | Depends on lender |
Best for HP
Best if you want to own the car outright, drive as many miles as you like, and prefer a simpler agreement with no surprises at the end.
Best for PCP
Best if you want lower monthly payments, like changing cars every few years, and want flexibility at the end of your deal.
Check your eligibility for both HP and PCP deals in minutes (Representative 19.8% APR) - with no impact on your credit score. Our partner uses a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score.
Your credit score: Lenders use your credit history to decide what rate to offer. A higher score generally means a lower APR. You can check your score for free through services like ClearScore, Experian, or Credit Karma before applying.
The size of your deposit: A larger deposit reduces the amount you borrow, which can lower your monthly payments and the total cost of the deal. Even a small deposit can improve the terms you are offered.
The length of the agreement: Shorter terms mean higher monthly payments but less interest overall. Longer terms spread the cost but increase the total amount you repay.
The car's value and age: Newer, more expensive cars may attract different rates. Lenders also consider the car's age, mileage, and condition. Finance is available for electric vehicles too, and some lenders offer specific EV finance products.
The type of finance: HP and PCP work differently and suit different budgets. HP gives you ownership at the end; PCP offers lower monthly payments but includes a balloon payment if you want to keep the car.
Your employment and income: Lenders assess affordability based on your income, outgoings, and employment status. Being employed, self-employed, or retired can all affect the offers available to you.
Before committing to a finance deal, it makes sense to check the vehicle's history. Our free MOT checker lets you see a car's full MOT history, test results, and any advisory notices. You can also check its road tax status and ULEZ compliance with our tax checker.
Check road tax status, rate, and ULEZ compliance for any vehicle.
Check Tax & ULEZ →The Financial Conduct Authority (FCA) confirmed its motor finance redress scheme in March 2026, following concerns about discretionary commission arrangements (DCAs) used by some lenders and dealers. If you took out car finance before January 2021, you may be eligible to make a complaint. Commission-related complaints are currently paused until the FCA finalises its redress framework.
For the latest information on the scheme, timelines, and how to check if you are affected, read our detailed guide.
Read our FCA Car Finance Compensation GuideSource: Financial Conduct Authority (FCA), Motor Finance Redress Scheme, March 2026.
If you are already paying for a car on finance, make sure you are not overpaying on your car insurance too. Comparing quotes from multiple insurers is the easiest way to check you are getting a competitive deal.
Thinking of selling your car? Get a free valuation via our partnership with Motorway.
Content produced by
Ryan is the founder of Brumble and has over a decade of experience in the UK motor finance and insurance industry. He created Brumble to make it easier for UK drivers to understand the insurance and finance world by cutting through the jargon.
Originally published: 12 February 2026 · Last updated: 27 May 2026
Find answers to your common questions about car finance.
Car finance lets you spread the cost of a vehicle over monthly payments instead of paying upfront. A lender provides the funds, and you repay over 2 to 5 years with interest. The two most popular types are Hire Purchase (HP), where you own the car once it is paid off, and Personal Contract Purchase (PCP), where you choose to keep, return, or trade in the car at the end. Read our guide to how car finance works for a full breakdown.
With HP, you pay off the full value and own the car at the end, with no mileage limits and no surprises. PCP has lower monthly payments but you only cover the car's depreciation, leaving a balloon payment if you want to keep it. PCP also comes with annual mileage caps. Our PCP vs HP comparison guide walks through the costs side by side with a worked example.
We have partnered with Car Finance 24/7 so one application is checked against multiple lenders, saving you time. You can check your eligibility with a soft search that will not affect your credit score. We also offer free tools like our MOT checker and tax and ULEZ checker to help you check a car before you buy. The service is free with no obligation. If you decide to proceed with a full application, a hard credit search will be carried out by the lender which may affect your credit score.
The total cost depends on how much you borrow, the interest rate, and the repayment term. A stronger credit score usually means a lower rate. Putting down a larger deposit or choosing a shorter term also reduces the overall cost. See our guide on how to get the best car finance deal for tips on keeping costs down.
The initial eligibility check via Brumble's partner is a soft search, so it will not affect your credit score. A hard credit check only happens if you decide to proceed with a full application. This hard search may cause a temporary dip in your credit score, even if you are approved. If you apply to multiple lenders in a short period, the combined hard searches could have a greater impact, so it is worth being selective.
Not always, but putting one down reduces the amount you borrow, which means lower monthly payments. Aim for around 10% of the car's price if you can. Make sure you budget for insurance, tax, and running costs too, and you can compare car insurance quotes via Brumble to check prices before you buy.
With PCP (Personal Contract Purchase), you pay a deposit, followed by fixed monthly payments over an agreed term, typically 2 to 4 years. At the end, you have three options: hand the car back, pay a final balloon payment to keep it, or use any equity as a deposit on a new deal. Monthly payments are usually lower than HP because you are not paying off the full value of the car during the agreement.
With HP (Hire Purchase), you pay a deposit followed by fixed monthly payments over an agreed term. Once you have made all payments plus a small option-to-purchase fee (usually around £1 to £10), the car is yours. Monthly payments tend to be higher than PCP because you are paying off the full value of the vehicle, but there is no balloon payment at the end.
Yes, it is possible to get car finance with bad credit, although the rates and terms may differ from those offered to applicants with higher credit scores. Some lenders specialise in working with people who have lower credit scores, CCJs, or limited credit history. Applying via Brumble uses a soft search first, so checking your eligibility will not affect your credit score. If you decide to proceed with a full application, a hard credit search will be carried out which may affect your credit score. All car finance is subject to status.
You cannot sell a car that is on finance without settling the agreement first, because the lender owns (or part-owns) the vehicle until all payments are made. You would need to contact your finance provider to get a settlement figure, pay off the remaining balance, and then sell the car once the finance is cleared. If you are looking to sell, you can get a free valuation via Brumble.
Yes, you can part exchange a car that is on finance. The dealer will typically settle the remaining finance as part of the transaction. If your car is worth more than the outstanding finance, the difference can be used as a deposit on your next vehicle. If the car is worth less than the settlement figure (known as negative equity), you may need to cover the shortfall.
There is no single credit score required for car finance, as different lenders have different criteria. Generally, a higher score gives you access to better rates. Most lenders look at your overall credit history, income, and affordability rather than a single number. Checking your eligibility via Brumble uses a soft search, so you can see what is available without any impact on your credit score. If you decide to proceed with a full application, a hard credit search will be carried out which may affect your credit score.
It may be possible to get car finance while receiving universal credit, but lenders will assess your overall affordability, including your income from all sources and your monthly outgoings. Each lender has different criteria, so checking your eligibility is the best way to find out what options are available to you.
Some lenders offer joint car finance applications, which can be helpful if one applicant has a stronger credit profile. A joint application means both parties are equally responsible for the repayments. Not all lenders offer this, so it is worth checking eligibility to see which options are available.
APR stands for Annual Percentage Rate, which shows the total yearly cost of borrowing including interest and fees. The lower the APR, the less you pay overall. The rate you are offered depends on your credit score and circumstances. Our guide on getting the best car finance deal explains how to secure a competitive rate.
No lender can guarantee approval for car finance, as all applications are subject to affordability and credit checks. However, there are lenders who specialise in working with a wide range of credit profiles, including applicants with lower scores or limited credit history. Checking your eligibility via Brumble uses a soft search, so you can find out what is available to you without any impact on your credit score. If you decide to proceed with a full application, a hard credit search will be carried out which may affect your credit score. All car finance is subject to status.
Yes, it is possible to refinance an existing car finance agreement. This means taking out a new agreement to pay off the remaining balance on your current one, potentially at a better rate or with different terms. You would need to get a settlement figure from your current lender first. You can check your eligibility for refinance options via Brumble.
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