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How to Estimate Your Monthly Car Payment

Peson calculating their monthly car payments

In today’s economy, people are having to become thriftier than ever. Financial literacy is one of the best weapons against the rising cost of living, and part of that involves tracking every outgoing. Basically, it’s simple maths – you shouldn’t spend more than you take home.

In addition to managing day-to-day expenses like food shopping, it’s helpful to anticipate more significant costs, such as mortgage and car repayments. Vehicles, as a whole, eat up a substantial chunk of the average Brit’s wage, with total monthly payments (including fuel, insurance and maintenance) averaging around £317 per month.

While home ownership and supermarket shelves aren’t our strong points, we do know a lot about cars. The following guide explains how to estimate your monthly car repayments (hint: by using our handy car finance calculator) and what variables can affect the total amount.

How much should I spend on a car?

Of course, your monthly repayments depend on the cost of the vehicle – the more expensive the car, the greater they’ll be. But how much should you spend in the first place?

While we can’t give you a definite answer, as a rule, you should allocate no more than 10% to 15% of your income on car repayments. If you earn £35,000, that’s £3,500 per year. On top of this, the total amount you spend on your vehicle shouldn’t exceed 20% of your income. This includes planned and unplanned maintenance, insurance and fuel.

Top tip: Before entering into a credit agreement, you must assess whether you can afford the repayments for the duration of the loan. Otherwise, it’ll impact your credit score.

How much can I borrow to buy a car?

Most people simply don’t have the resources to buy a car outright. Instead, they borrow money from reputable lenders. The most common types of car finance agreements are personal contract purchase (PCP), hire purchase (HP), leasing (personal contract hire) and a personal loan.

Whatever you choose, the amount you can borrow depends on your circumstances. Credit brokers and lenders will assess your income, outgoings and debt before making a final decision.

What variables affect monthly repayments?

If you want to estimate your monthly car repayments, consider the following variables. Each one will influence the final figure:

Car price
Down payment
New vs used
Repayment term
Interest rate
Credit history

Top tip: Finance calculators are easy and free to use. They provide an estimate of what your monthly payments could be based on your credit profile.

Car price

As mentioned earlier, the more expensive the car, the higher the monthly repayments. Remember that running costs, unplanned costs and service charges aren’t included in this figure, so don’t blow your entire budget on the initial purchase.

Down payment

Much like a house deposit, a down payment is a lump sum paid upfront by the customer. It’s deducted from the total cost of the car, reducing the overall amount that has to be financed. The size of a down payment determines monthly repayments, interest rates and repayment terms.

How much should a down payment be? You’ll usually receive better contract terms if you cover around 20% of the total cost of the car. However, any size deposit will help lower the cost of finance and you shouldn’t put yourself under financial pressure by paying more than you can afford.

New vs used

Used cars are your best bet if you want lower monthly repayments. Firstly, they’re often less expensive, so you don’t need to borrow as much. Secondly, and perhaps most importantly, they tend to depreciate in value slower than new cars, meaning you might not lose as much money in the long run.

Repayment term

A repayment term is the amount of time you have to pay back your car finance. The average car loan length for new vehicles is 72 months, compared to 65 months for used vehicles.

So, which is better – short or long repayment terms? It depends. The longer the term, the lower the monthly repayments. However, you’ll make more payments overall and accrue more interest. Ultimately, longer repayment terms might be more manageable for low-income households but aren’t necessarily cheaper over time.

Another thing to think about here is depreciation. If your car crashes in value, a longer loan term might mean, that eventually, the outstanding balance is actually worth more than the car itself.

Interest rate

As with any loan, interest rates will influence your monthly repayments. High interest rates mean you’ll pay more, so it’s important to find the best possible deal before committing to a finance plan. Shop around for a good APR (annual percentage rate) – this tallies total costs (including interest rates) to provide an accurate insight into how much your loan will be.

What should you be aiming for? Generally, 10.9% is considered good for someone with an excellent credit score, and anything up to 12% is reasonable. If you have a poor credit score or no credit history at all, you could be looking at 20% or higher.

Credit history

Your credit history is a biggie and one of the most significant factors in deciding how much you can borrow. While lenders might accept applicants with poor credit on a case-by-case basis, it’s much harder to secure finance with reasonable terms. For example, you’ll probably pay higher interest rates.

Top tip: If you have a poor credit score and want to reduce your monthly repayments, make a larger down payment or find a trustworthy guarantor to back your claim. Bear in mind that your guarantor becomes liable for your repayments, and therefore, this option is a big responsibility that should be carefully considered.

How much will my monthly repayments be?

It’s impossible to say for sure how much your monthly repayments will be unless we have all the information above. For more information, why not use our car finance calculator?

The calculator is especially handy for people who are short on time. Simply input your loan amount, repayment term and credit rating, and the calculator will provide an instant breakdown of expected costs. Everyone’s welcome to apply, including those with poor credit scores. Plus, we have the largest panel of lenders out of any broker in the UK.

Try our handy online car finance calculator today and discover just how My Car Credit can help you get behind the wheel today.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

How Do Car Deposits Work?

Mother and child in park after discovering how car deposits work

Whether you love the affordability of personal contract purchase (PCP) or prefer the easy path-to-ownership of hire purchase (HP), many car finance agreements have the option to pay a deposit. Keep reading to discover how car deposits work, what you should consider when making one, and how they can influence your overall finance deal.

What is a car deposit?

A car deposit is the lump sum of cash you pay upfront when buying a car. It shows the seller that you’re serious about the purchase and secures the car until the full payment is complete or financing is finalised. Your deposit often influences the terms and conditions of your deal, affecting everything from monthly repayments to interest rates.

Purpose of a car deposit

Here’s a closer look at why deposits are so important when financing cars:

Securing the vehicle

A deposit ensures that the dealer holds the car for you and doesn’t sell it to another buyer. This is particularly important for popular models from manufacturers like Land Rover, Nissan and Mercedes-Benz, which can have long lead times. Deposits can also be a lifeline when you want to secure a car but need time to arrange financing.

Lower monthly payments

Deposits help offset the total purchase price of the vehicle, which lowers your monthly payments. Generally, the higher the deposit, the lower your monthly finance payments. This is because you’re reducing the principal amount that needs to be financed.

Improved finance terms

A decent deposit can affect the terms of your finance agreement and help unlock a lower interest rate. Lenders associate high deposits with low-risk borrowers, which can prompt them to offer more favourable loan conditions.

How much should you pay?

The amount you decide to put down as a deposit depends on several factors:

Price of the car: Higher-priced vehicles usually require a larger deposit. A common benchmark in the UK is 10-20% of the car’s total cost. For example, if you’re purchasing a car priced at £25,000, expect to pay a deposit of £2,500 to £5,000.

Dealer requirements: Some dealerships have set minimum deposit requirements.

Your budget: How much you can afford to pay upfront will often determine your deposit size. It’s important not to stretch your finances too thin by putting down more than you can comfortably afford.

Different types of deposits

Standard deposits: Many car financing deals start with a standard cash deposit.

Part exchange: If you’re trading in your old car, its value can sometimes be used as your deposit for the new one. This can be a convenient way to boost your deposit without additional cash.

No deposit deals: Some lenders offer ‘no deposit’ terms which allow you to skip an upfront payment entirely.

Find the right deal with My Car Credit

Whether you’re struggling to pull together a decent deposit or you’re ready to make a sizeable down payment on your next car, My Car Credit is here to help. As a car finance broker, we work with a panel of trusted lenders to find deals that suit every type of driver.

To get started, take a look at our handy online car finance calculator and get that dream of a new car underway.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Can You Get Cars on HP with No Deposit?

Electric Car: Lease vs Buy – Which is Best?

PCP Finance Explained – Personal Contract Purchase Guide

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Advantages of Cars on PCP with No Deposit

With the average cost of medium-sized cars now as high as £36,000, it’s no wonder finance options like Personal Contract Purchase (PCP) have surged in popularity. They offer a flexible route to drive away in a new or used car without making a big dent in your bank account.

Instead of a one-size-fits-all model, the best brokers provide tailored PCP deals that fit individual budgets and lifestyle needs, including attractive no deposit options. Sound like this could be a good fit for you? Keep reading as we spotlight the key advantages of PCP no deposit plans.

1. Minimal initial outlay

One of the standout benefits of no deposit PCP plans is the low initial cost. This model allows you to get behind the wheel without needing a substantial upfront payment, freeing up your funds for other crucial expenses.

Particularly advantageous for drivers who don’t have immediate access to large amounts of cash, no deposit PCP plans dramatically lower the barriers to car ownership, making it more accessible and less financially daunting to drive away in a new car.

2. Improved cash flow management

With no major deposit commitments, your financial resources aren’t tied up from the get-go with PCP no deposit plans. This improves your cash flow and helps streamline the management of monthly expenses and savings. It’s an excellent strategy for maintaining financial flexibility and allows you to allocate funds to other priorities like home improvements, investments or even an emergency fund.

3. Access to better cars

PCP no deposit car finance could allow you to consider higher-spec models that may have been out of reach with traditional financing methods that require upfront payments.

For example, instead of settling for a compact hatchback the model could allow you to upgrade to a roomy SUV like a Land Rover Discovery Sport, Land Rover Discovery Sport or Nissan X-Trail.

Whether you prioritise space, safety features, comfort or cutting-edge technology, PCP can help you secure the keys to your dream car, without a huge deposit.

4. Fixed monthly payments

Cars on PCP with no deposit still come with the benefit of fixed monthly payments. This predictability helps with budgeting as you know exactly how much you need to set aside for your car each month, without any surprises.

5. Flexible end of agreement options

At the end of your no deposit PCP term, you have multiple options. You can return the vehicle, keep it by paying the final balloon payment or trade it in for a new car on another PCP plan, providing the car is in good working order and in line with the annual contracted mileage. This flexibility gives you the freedom to adapt to changing personal circumstances or preferences, without financial penalties.

6. Lower monthly payments

Because PCP plans are structured around only financing the depreciation of the car, rather than its full value, monthly payments can be lower compared to other finance methods like Hire Purchase (HP). This is even more beneficial when you choose cars on PCP with no deposit, as it spreads the cost even more effectively across the contract term.

7. Opportunity to drive a new car more often

PCP deals, especially those without a deposit, make it financially viable to change your car every few years. If you enjoy the thrill of driving the latest models like the Audi Q4 E-tron, Skoda Enyaq and Volkswagen ID 4, this is one of the top benefits of PCP.

How does it work? A PCP plan splits the cost of the car into more manageable chunks. You start with an optional initial payment, followed by fixed monthly payments over a set period, typically three to five years. At the end of the agreement, you have the option to either return the vehicle, keep it by paying a final ‘balloon’ payment (the Guaranteed Future Value of the car) or trade it in for a new model.

Any equity beyond the Guaranteed Future Value can be put towards a deposit for your next vehicle. This cycle ensures you can always enjoy the latest upgrades and technology, without big upfront costs.Top of Form

8. Warranty coverage and reduced maintenance costs

Nearly-new cars often come with some of their manufacturer warranty still left. This means less worry about unexpected repair costs, as most will be covered under your warranty. Driving a newer car also means fewer maintenance issues, a benefit that can further reduce your out-of-pocket expenses.

A final word on PCP

Don’t forget that whilst there are many advantages to a deposit-free PCP, it is still important only to borrow what is within your means. When you apply, the lender will perform a full credit check to confirm that the PCP is affordable for you.

Enjoy deposit-free PCP with My Car Credit

From preserving your capital and unlocking access to better makes and models, to streamlining your budget and building a good credit history, PCP no deposit plans are packed with perks that make getting into your next car both easy and economical.

Whether you’re upgrading from an older vehicle or entering the car market for the first time, a no deposit PCP plan is an excellent financial tool that can help steer your finances, and your journey to car ownership, in the right direction.

Why not see where it could take you? Check out our online car finance calculator to crunch those numbers and get on the road to your dream car.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Check for car finance without affecting your credit score

Is There a Maximum Age Limit for Car Finance?

What is a Guarantor Loan?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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How Does PCP Work at the End of the Term?

person circling end of PCP term in a calendar

There are many kinds of car finance. The right one for you will depend on your unique needs and circumstances.

One of the most common and popular types of car finance is PCP or personal contract purchase. But what is PCP car finance, and how does it work at the end of term?

This article will break down what PCP car finance is and what you can expect at the end of the term, helping you decide if this type of agreement is right for you.

What is PCP car finance?

PCP car finance is one of the most popular car finance agreements for UK drivers.

With PCP, you borrow a pre-determined amount of money against the cost of a new or nearly new vehicle. You then pay that money back via a series of affordable monthly instalments.

PCP is a popular type of car finance because the monthly repayments are lower compared to other car finance agreements. This is because you pay an initial deposit (although there are zero deposit options available for those with excellent credit) and then a significant amount of your borrowing is deferred to what’s known as either a balloon payment or an optional final payment.

The longer your PCP contract is, the lower the monthly payments will be, as you’re spreading the cost more thinly. That said, you can expect to pay more interest because you’re essentially borrowing money for longer.

The final balloon payment is a lump sum that you can choose to pay at the end of your agreement’s term. By making this payment, along with a small option to buy fee, you’ll own the car outright.

With PCP car finance, you don’t have to make this final payment at the end of term – it’s optional. You can alternatively choose to hand the vehicle back, provided the vehicle is in good working order.

Be aware that you will face mileage restrictions with PCP and can face penalties if you cause more than fair wear and tear to the vehicle.

How does PCP work at the end of term?

At the end of term on a PCP car finance agreement, you won’t own the car outright.

To do so, you’ll need to make an optional final payment – also known as a balloon payment.

The balloon payment is calculated based on what’s known as your car’s guaranteed future value, or GFV. The GFV is calculated according to the anticipated depreciation of your car over the term of your finance agreement. This number is based on variables, including your initial estimate of your yearly mileage, the vehicle’s make and model, and the length of your PCP agreement.

You’ll subsequently face penalties if you breach this predicted mileage or if you return the vehicle with excessive wear and tear. These penalties are applied because overuse of the car can impact its GFV.

The GFV is a fixed cost – it won’t rise or fall, even if the value of your car fluctuates.

As such, you can sometimes find yourself in the advantageous position of having a vehicle for which the GFV is higher than its actual value, which puts you in positive equity. We explain more about that below.

What to do at the end of your PCP term

You have three options at the end of a PCP agreement.

Make the balloon payment

If you want to own your car outright at the end of a PCP term, you can make the final balloon payment.

This is a great option if you don’t want to return a car that works well for you.

Return the vehicle

With PCP car finance, the final balloon payment is optional – you can choose just to hand the vehicle back.

This is a sensible option if your car is worth less than the GFV through no fault of your own.

Provided that you’ve kept the car in good condition and within your mileage restrictions, you can hand the vehicle back and won’t have any final payment to make to the lender at the end of your PCP term.

Part exchange the vehicle

You may find yourself in ‘positive equity’ at the end of your PCP term.

This means that your car is worth more overall than its GFV. You can leverage this positive equity to your benefit by making the final balloon payment and selling the vehicle for a profit.

Alternatively, you can part exchange the vehicle for a newer model and use this equity as a deposit towards your next car.

Many drivers like PCP car finance because it enables this process of part exchange, allowing them to regularly update their vehicle for a newer, higher spec option.

I can’t afford my end-of-term PCP payment – what do I do?

If you can’t pay the balloon payment at your PCP agreement’s end of term, you have some options.

Remember that this balloon payment is optional with PCP – you don’t have to pay it. You can instead choose to hand the vehicle back. But by doing so, you will be giving up your right to use the vehicle – not ideal if you need regular use of a car. You’ll also then need to find another car finance agreement to fund your next set of wheels.

Alternatively, you can secure balloon payment finance. This allows you to break down the balloon payment into manageable monthly instalments.

Discover if PCP finance is right for you with My Car Credit

PCP continues to be a popular car finance agreement for thousands of drivers around the UK.

Try our online car finance calculator to understand just how My Car Credit can find the right car finance for you.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Financing a Second-Hand Car: 4 Options

Check for car finance without affecting your credit score

How Does Car Finance Work in the UK?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Used Car Loan Process Explained

Steering wheel of a car using a used car loan

From sidestepping initial depreciation to avoiding long waitlists, used cars come with myriad benefits.

Like new models, car loans can be a great way to fund the purchase of a second-hand vehicle. Even better, navigating the used car loan process doesn’t have to feel like manoeuvring a busy roundabout during rush hour. With the right information, securing finance for a used car can be straightforward and stress-free. Whether you’re eyeing a sturdy family estate or a compact city runner, read on for an easy, six-step guide to the used car loan process.

Step 1: Assess your financial situation

Before you kickstart your loan application, take a good look at your financial health. Crunch your numbers and decide how much you can afford to pay each month while maintaining a comfortable lifestyle and keeping up with other financial responsibilities. Don’t forget to include other car-related expenses such as insurance, maintenance, and fuel.

It’s worth checking your credit score, which will play a significant role in the terms you might receive and your interest rate. A higher credit score can unlock more favourable loan conditions.

Step 2: Choose the right vehicle

Be mindful that your choice of vehicle can influence your loan terms and overall chance of approval. Older models or cars with high mileage might be harder to finance as they’re considered less reliable. Settling on a few options before approaching lenders can help streamline the used car loan process.

Step 3: Shop around for the best deals

Don’t accept the first loan offer you receive, even if it seems like a great deal. Compare rates from different lenders, including high street banks, credit unions and specialised auto finance companies. Working with a broker can be a great way to expand your horizons and shop around for the best deals when navigating the used car loan process.

Step 4: Understand the terms

It’s important to understand all the terms and conditions of your loan. Look beyond monthly payments and evaluate variables like interest rate, loan duration and any fees associated with early repayment or late payments.

Longer loan terms can make monthly repayments more affordable, but it’s important to remember that you’ll be making more payments and, therefore, paying more interest over time. Assess whether a longer car finance term is truly beneficial for you in the long run. To put things into perspective, the latest data from Experian reveals the average auto loan term for used cars is 67.4 months, while average car leases are just under 36 months.

Step 5: Finalise the loan and purchase your car

After choosing the best loan offer, it’s time to submit your paperwork. This typically involves providing proof of income, identity, and other key documents. Once the loan is approved, the funds are transferred directly to the dealership or your personal bank account, dependent on the type of agreement. You can then purchase your used car and get behind the wheel!

Step 6: Repayment and beyond

With the loan secured and the car keys in hand, focus shifts to repayments. Setting up automatic debits during the used car loan process can help avoid missed payments and potential fees. Consider making extra payments to reduce the interest amount and shorten the loan term.

Check out our fantastic online car finance calculator today to discover the right car finance for you.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Car Finance: A Complete Guide

What is the Oldest Car a Bank Will Finance?

What’s the Cheapest Way to Finance a Car?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

application application process car finance car finance options car loan Jan24 lender repayments used car

PCP Term: Everything You Need to Know

Woman leaning out of a red car purchased on PCP

Car finance continues to appeal to drivers across the UK because it’s a flexible, affordable way of funding the purchase of a new, nearly-new or used set of wheels.

PCP car finance is one of the most popular types of auto finance agreement. With lower monthly repayments and flexible deposit options compared to other car finance choices, there’s a reason why drivers nationwide continue to choose PCP car finance.

With that said, PCP is a little more complicated than other car finance options because of the end-of-term options. We break down everything you need to know about a PCP term below.

What you need to know about a PCP term

Personal contract purchase (PCP) car finance is a flexible agreement that offers lower monthly repayments compared to other types of car finance.

With PCP, you’ll be splitting the price of your vehicle into three chunks – a deposit, your monthly repayments, and an optional final payment that’s also known as a balloon payment.

A PCP term is typically anywhere from 36 to 60 months, or three to five years. The longer the term of your PCP finance agreement, the lower the monthly repayments will be, as the cost is being spread over a longer term. However, you will generally pay more interest overall because you’re borrowing money for a longer period.

How does the end of a PCP term work?

With PCP, you won’t own the car outright at the end of your agreement, unless you choose to make an optional final payment, also known as a balloon payment, along with a small option to purchase fee,.

In fact, it’s because of this optional final payment that the monthly repayments on PCP are lower compared to other car finance agreements.

However, it does mean that you need to decide whether you want to make this final payment once you reach the end of your PCP term.

Bear in mind that this payment is optional with PCP – you don’t have to make it. You can always choose to hand the car back, and you won’t face any surplus charges, provided you haven’t caused undue damage to the vehicle and the vehicle is within the contracted mileage.

Alternatively, you can make the final balloon payment and you’ll formalise ownership of the vehicle. Balloon payment finance can help to make this final lump sum more affordable by breaking it down into manageable chunks – much like any other car finance agreement.

You can also choose to part exchange the vehicle for a higher spec model if you find yourself in ‘positive equity’. This happens when the car is worth more than the lender anticipated at the end of your PCP term and is a great option for drivers who like to update their car for a newer model.

Find out more about PCP finance today

If you are looking to start your car-buying journey, check out our online car finance calculator to crunch those numbers and take your first step to owning your next dream car.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Much Does Car Finance Cost? Check Now!

How Does Auto Finance Work?

Is There a Maximum Age Limit for Car Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

ballon payment balloon payment finance car finance car finance options Jan24 lender PCP used car

Paying for a New Car with a Loan – How It Works

Couple stood next to a silver car bought using a car loan

Whether you’re buying your first car or upgrading an existing set of wheels, purchasing a new vehicle is exciting. But for many Brits, the question of how to bankroll it can be daunting.

This is where car loans come in. Suitable for both new and used vehicles, car loans and finance make paying for a new car convenient and accessible.

Want to know more about how an auto loan can help you navigate the road to a new car? Read on as we unpack the ins and outs of paying for a new car with a loan, exploring everything from the application process to repayment options.

Understanding car loans: the basics

Let’s start with the fundamentals. Car loans are a type of financing product specifically designed for auto purchases. They allow you to borrow a certain amount of money from a lender, which you then repay over time, usually with interest.

Choosing the right loan

When it comes to paying for a new car with a loan, one size does not fit all. Before applying, it’s essential to consider your individual circumstances and preferences. Here are some key factors to keep in mind when vetting lenders and loan products:

Loan amount: Determine how much you need to borrow based on your budget and the cost of the car, as well as any additional fees.

Interest rate: Shop around for competitive interest rates to ensure you’re getting the best deal possible. Variables like your credit score can impact the interest rate offered when paying for a new car.

Loan term: Agree on the length of the loan, keeping in mind that longer terms can unlock lower monthly payments but higher overall interest costs.

Additional fees: Ask about any additional charges, such as late payment fees. Some lenders may also charge extra for early repayments. Ask lots of questions to avoid unwelcome surprises down the line.

Types of car loans

When exploring car financing options, you’ll see various types of loans tailored to different needs. There are a few acronyms to decipher, but really, it’s quite straightforward, and there’s no need to be intimidated. Here’s a breakdown of the main ways of paying for a new car in the UK with a loan.

Hire Purchase (HP): With HP loans, you pay a deposit upfront (although there are plenty of zero deposit options too), followed by fixed monthly payments over the lifetime of the agreement. Once you’ve made all the payments, you own the car outright. HP is a clear-cut financing option suitable for those with an end goal of full ownership of the vehicle.

Personal Contract Purchase (PCP): PCP lowers monthly payments by deferring a significant chunk of the loan amount to the end of the agreement. At the end of the term, you can choose to return the car, provided the vehicle is in good condition and within the contracted mileage, trade it in for a new model or make a final ‘balloon payment’ along with a small option to purchase fee to own the vehicle outright.

Personal Contract Hire (PCH): PCH is similar to PCP but involves leasing the car rather than owning it. You pay fixed monthly payments for the duration of the lease and return the car at the end of the agreement. It’s a great option if you love to drive the latest models. However, PCH agreements often include mileage restrictions and wear-and-tear guidelines.

Personal Loans: Personal loans can be used for various purposes, including paying for a new car. You receive a lump sum of money from the lender, which you then repay with interest over time. Personal loans offer flexibility, but the options may be limited for those with a poor credit profile.

The application process: what to expect

Once you’ve done your homework and selected a suitable loan, it’s time to apply. Here’s what you can expect during the application process:

Documentation: Prepare requested documents, including proof of identity, income verification and details about the car you want to purchase.

Credit check: The lender will request a credit report to evaluate your status and set the terms of the loan. A healthy credit score can improve your chances of approval and result in more favourable terms, including lower interest rates.

Approval decision: After reviewing your documents and credit rating, the lender will either approve or decline your application. If approved, you’ll receive details about the loan terms, including the interest rate, amount, and repayment schedule.

Loan pay-out: Once you’ve accepted the loan terms, the finance company will transfer funds to the seller or dealership, allowing you to complete the purchase of your new set of wheels.

Paying for a new car: managing your loan responsibly

With the loan secured and a set of keys in your hands, it’s time to focus on repayments. Here are some tips for managing your loan responsibly:

Budgeting: Incorporate your loan payments into your monthly budget to ensure you can afford them comfortably. Prioritise your payments over other less-important expenses to avoid defaulting on your loan and dragging down your credit score.

Automatic payments: Consider setting up automatic deposits when paying for a new car. This will ensure your loan payments are made on time. This can help you avoid late fees and maintain a stellar payment history.

Extra payments: If possible, consider making extra payments towards your principal loan amount. This will help you pay off the loan faster and reduce the total interest paid.

Communication: If you run into financial difficulties or anticipate missing a payment, communicate with your lender proactively. They will be more understanding than you might think and can usually offer assistance or alternative payment arrangements to help you avoid defaulting.

Drive towards success with My Car Credit

Whether you’re looking to lease a brand-new Nissan Leaf or work towards full ownership of a used Toyota Highlander, paying for a new car with a loan can open new doors when it comes to getting behind the wheel. At My Car Credit, we’re riding shotgun to help you understand the basics of car loans, choose the right product for your needs, navigate the application process, and manage repayments responsibly – so you can get behind the wheel with confidence.

Try out our fantastic online car finance calculator to see an instant breakdown of your expected monthly payments, typical rate and total payable.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Will I Get Accepted for Car Finance?

I want to buy a car on finance, how much can I borrow?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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PCP: Is It Worth It?

Man driving nearly-new car bought using PCP finance

PCP is one of the most popular types of car finance agreement. Flexible and affordable, it’s among the best ways to get behind the wheel of a new, nearly-new or used car.

This article will break down what PCP car finance is, what you can expect of your agreement, and answer the question – is PCP worth it?

What is PCP car finance?

Personal contract purchase (PCP) car finance is one of the most sought-after car finance options.

PCP allows you to split the cost of your car into a series of affordable monthly repayments (plus interest), as well as a deposit and an optional final payment – also called a balloon payment. It offers lower monthly repayments and a lower deposit compared to other kinds of car finance agreements.

These monthly repayments are lower because a higher proportion of the loan is deferred until the optional final payment. This is a lump sum you’ll need to pay the lender to own the car outright.

This lump sum or balloon is calculated based on what’s called your car’s guaranteed future value or GFV. The GFV is calculated according to a forecast of the vehicle’s value at the end of the agreement. This forecast is based on factors like the car’s anticipated mileage – so if you breach this figure or incur excessive vehicular wear and tear, you can face hefty fines.

The length of a PCP agreement is typically anywhere from 24 to 36 months or three to five years. The longer the term of your PCP finance agreement, the lower your optional balloon payment will typically be. This is because newer models of cars will have a higher financial value by comparison.

What are the advantages and disadvantages of PCP?

+ Lower monthly repayments and deposit

Compared to other car finance agreements, PCP has a lower deposit and monthly repayments.

Plus, there’s more flexibility compared to other agreements – you have the option to pay the car off early or negotiate around the end of the repayment term.

+ Possibility of making a profit on your car

Your car’s GFV is a fixed value – it can’t change, even if the car is worth less at the end of your agreement than its GFV.

On the other hand, this can mean that your car is worth more at the end of your PCP agreement than its GFV. This puts you in positive equity, which you can leverage to your advantage. You could part exchange the car for a newer model and put this positive equity towards the deposit of your next car, for example.

Alternatively, you can pay the final balloon including a small option to purchase fee and sell the car on yourself, pocketing the difference.

+ Ideal for regularly upgrading your vehicle

The final balloon payment of a PCP agreement is optional – you don’t have to pay it. Provided that you haven’t exceeded the vehicle’s mileage limit or caused undue wear and tear, you can hand the keys back at the end of the agreement.

This is great for people who like regularly updating their car for newer, higher spec models. Plus, it means that if your vehicle has a lower GFV through no fault of your own, you don’t front the cost.

+ Balloon payment financing

If you want to make the final optional payment to own the car outright but aren’t sure you can afford it, you have options. Balloon payment financing works like any other car finance agreement – you break the cost of the balloon into affordable chunks, plus interest.

– Usage restrictions

With PCP, you defer a significant portion of the car’s value until the final balloon payment. As explained above, this lump sum is calculated based on the car’s anticipated mileage and usage.

If you breach these usage restrictions and cause excessive wear and tear on the vehicle, you’ll impact its overall GFV. The car will then be worth less at the end of your PCP agreement than estimated. You’ll subsequently face penalties for breaching usage restrictions.

PCP: is it worth it?

Whether PCP is worth it depends on what you want from your car finance. One of the main appeals of car finance is the variety of agreements. The right one for you is contingent on your needs and circumstances.

Thinking of starting your car buying journey? Try out our handy online car finance calculator to crunch the numbers on your next car.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Car Repayments Explained

Woman calculating her car repayments on a calculator

From daily commutes to weekend adventures, car repayments offer unmatched freedom and convenience. However, for many Brits, understanding the ins and outs of auto finance can feel like navigating a six-lane motorway.

This is where we’re here to help. Read on as we unpack car repayments and explain everything you need to know about loan options, the application process, repayment strategies and more.

Decoding car repayments: key concepts

Understanding auto finance car repayments begins with a few fundamental concepts. Here are some bite-sized definitions of the most important terms you need to know:

Loan principal: This is the base amount you borrow to purchase your vehicle. It doesn’t include the down payment or any value you might get from trading in your old car.

Interest rate: This is what the lender charges for the money-borrowing service they provide. It’s typically expressed as a percentage. Shopping around for the best interest rate is important, as it determines how much extra you’ll pay on top of the loan principal car repayments.

Loan term: This is the duration over which you agree to pay back the loan. While a longer term can reduce your monthly payments, it might increase the total amount of interest you’ll pay over the life of the loan.

Monthly payments: These are what you’ll pay each month, made up of both the principal amount and the interest. The amount is influenced by how much you borrow, the interest rate and the term of your loan. Monthly car repayments may also include other fees applied by the lender.

Understanding different loan options

When it comes to financing your car, there are several routes you can take. Here’s a closer look at some of the most popular car repayments options in the UK:

Hire Purchase (HP)

This straightforward finance plan involves putting down a deposit (although there are plenty of zero deposit options), followed by fixed monthly car repayments. Once you’ve made all the payments, the car is yours to keep. Hire purchase is perfect for those who want to own their car outright at the end of the agreement.

Personal Contract Purchase (PCP)

PCP keeps monthly payments lower by postponing a significant portion of the loan to the end of your agreement. This final chunk is known as a balloon payment, but you’re not necessarily obliged to fork out. When your PCP agreement ends, you can choose to return the car, providing the car is in good working order and within the annual contracted mileage, swap it for a new one or pay the balloon payment along with a small option to buy fee to own the vehicle outright. Flexibility is one of the biggest benefits of PCP car repayments.

Personal Contract Hire (PCH)

Think of PCH as a long-term rental. You pay a fixed monthly fee to use the car but must return it at the end of the term. It’s great for those who like driving newer models and don’t want the hassle of selling the car later.

Personal Loans

These are unsecured loans that give you a lump sum to buy your car. Interest rates might be higher, but they offer more flexibility and aren’t secured against your vehicle.

Navigating the application process

Here’s what to expect when you apply for car finance:

Documents and personal information: You’ll need to gather multiple documents, such as proof of identity, proof of income and details about the vehicle you intend to purchase.

Credit check: Lenders will check your credit score to determine your financial reliability. A healthy credit score usually means more favourable loan terms. Pro tip: when shopping around for car finance some brokers will carry out credit checks to determine your eligibility. Always look for a broker that runs an initial ‘soft’ check that won’t leave a mark on your credit history. Please note however, that should you progress, some lenders may perform a hard search on your credit file.

Approval decision: After reviewing your documents and credit score, the lender will either approve or reject your application. If approved, they’ll clearly outline the loan terms and your car repayment schedule.

Loan pay-out: Once you agree to the terms, the lender will pay out the money to the car seller or dealership.

Savvy car repayment strategies

Car repayments open exciting new doors when it comes to getting behind the wheel. Many Brits are eligible, even with less-than-perfect credit scores. But it’s important to understand your responsibilities as a borrower and keep up with your car repayments. To handle your car loan responsibly, consider the following strategies:

Set a realistic budget

Make sure your monthly car repayments fit comfortably within your budget. It’s better to adjust your budget now than struggle later.

Automate payments

Setting up automatic car repayments can prevent late fees and helps keep your credit score healthy.

Make additional payments

If you can afford it, pay more than the minimum amount each month to reduce interest in the long run and shorten your loan term.

Communicate with your lender

If you hit a financial snag, talk to your lender early to discuss potential adjustments to your payment plan.

A firm grip on the basics of car repayments and a good understanding of different financing options can help you steer clear of common pitfalls and make choices that suit your financial situation, as well as your goals as a motorist.

Simplified auto finance with My Car Credit

Whether you’re eyeing a brand-new Ford Puma equipped with hybrid technology, a versatile Kia Sportage or a zippy Volkswagen Golf, the My Car Credit team is here to help you make smart, informed decisions when it comes to car repayments. This not only puts you in the driver’s seat regarding your financial health but helps ensure a smoother ride in your automotive journey.

So, don’t let finance fears keep you from enjoying the road. Use our handy online car finance repayment calculator to start your journey towards that new car.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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8 Advantages and Disadvantages of a Balloon Payment

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Bank Loan or PCP: Which is Right for You?

Woman confused over bank loan or PCP to buy a car

Purchasing a car is expensive, and many drivers just don’t have the upfront cash available. That’s when it becomes necessary to find alternative finance options.

With lower monthly repayments, PCP is a popular, flexible, accessible way of financing a car. A bank loan – also called an auto or personal loan – is another favoured finance option. This article will help you decide whether a bank loan or PCP is right for you.

What is PCP car finance?

PCP car finance is one of the most popular types of car finance agreement.

If you choose a PCP car finance agreement, you’ll be splitting the cost of your vehicle into three chunks:

Monthly repayments plus interest
A deposit
An optional final payment, along with a small option to buy fee (also known as a balloon payment)

With PCP, you benefit from lower monthly repayments and flexible deposit options compared to other car finance agreements. You won’t own the car unless you choose to pay the final lump sum, after which the vehicle belongs to you. You’ll also face mileage restrictions and can face penalties if you breach these, or if you cause undue wear and tear to the vehicle.

PCP contracts have a voluntary termination clause, which allows you to exit the agreement early, provided you’ve paid off at least half of the loan. Bank loans must be paid off in full.

A PCP term is typically anywhere from 24 to 36 months. The longer the term of your PCP finance agreement, the lower your optional balloon payment will typically be.

Remember that you will pay interest on the monthly repayments for a PCP agreement.

What is a bank loan?

With a bank loan, you’re borrowing the full value of the vehicle and buying your car outright. You then pay this amount off with a series of monthly instalments, and you don’t have to pay a deposit (but you may be able to, depending on the bank). These monthly instalments are typically higher with a bank loan than they are in a PCP agreement.

With a bank loan, you can choose to only borrow part of the car’s overall value – you can use your savings to make up the outstanding amount.

Unlike with PCP, you’ll own the car outright from the get-go, so you can sell or change it whenever suits you. You also won’t face restrictions around mileage or other usage and can modify the car during the deal if necessary.

Bank loans typically aren’t secured against the car, so if you fall behind on repayments, it can’t be taken away. That said, bank loan amounts may be limited in size to minimise risk to the lender, depending on their policy.

Individuals with poor credit ratings are unlikely to secure a bank loan. Equally, you’ll have to apply individually to different banks for a bank loan. Each application will require a credit check, and these are often hard credit checks in the first instance, meaning they’ll leave a mark on your overall score. With car finance, the initial credit check is soft. Please note that should you progress, some lenders may perform a hard search on your credit file.

A typical bank loan length is anywhere from 12 to 60 months.

Bank loan or PCP: pros and cons

Bank loan pros

Can be the simplest way of financing a car, as you can use the loan to buy from any private seller or business.
The car belongs to you immediately, so you can sell it on or modify the vehicle if desired.
No usage restrictions.

Bank loan cons

Higher monthly repayments compared to PCP.
Because you own the vehicle, you’ll bear the financial front if it experiences significant depreciation.
Bank loans are often limited in size, and individuals may not get the advertised rates.

PCP pros

Lower monthly repayments compared to a bank loan.
You don’t have to keep the car once the agreement ends.
Great for people who like to regularly switch up their vehicle for a newer, higher-spec model.
Guaranteed future value (GFV) of car, so you could benefit from positive equity at the end of the agreement.

PCP cons

You are not the car’s owner unless you make the final optional balloon payment.
Usage and modification restrictions.
The car can be repossessed if you fail to keep up with monthly repayments.

PCP vs bank loan – which is right for you?

PCP car finance is ideal for those looking for lower monthly repayments and who like to change their car often. With PCP, you also benefit from flexible options once the agreement ends and can choose to hand the vehicle back if it no longer serves you. This is providing the vehicle is in good working condition and within the annual contracted mileage.

Bank loans are great for individuals who want to own the car outright from the get-go, and don’t want to face any usage restrictions.

Discover your car finance needs today

If you’ve still got questions about PCP vs a bank loan, check out our other blogs on available finance options or try out our online car finance calculator to begin your car buying journey today.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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No Deposit Car Finance – How Does it Work?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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In today’s economy, people are having to become thriftier than ever. Financial literacy is one of the best weapons against the rising cost of living, and part of that involves tracking every outgoing. Basically, it’s simple maths – you shouldn’t spend more than you take home.

How much should I spend on a car?

How much can I borrow to buy a car?

What variables affect monthly repayments?

Car price

Down payment

New vs used

Repayment term

Interest rate

Credit history

How much will my monthly repayments be?

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What is a car deposit?

Purpose of a car deposit

Securing the vehicle

Lower monthly payments

Improved finance terms

How much should you pay?

Different types of deposits

Find the right deal with My Car Credit

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With the average cost of medium-sized cars now as high as £36,000, it’s no wonder finance options like Personal Contract Purchase (PCP) have surged in popularity. They offer a flexible route to drive away in a new or used car without making a big dent in your bank account.

1. Minimal initial outlay

2. Improved cash flow management

3. Access to better cars

4. Fixed monthly payments

5. Flexible end of agreement options

6. Lower monthly payments

7. Opportunity to drive a new car more often

8. Warranty coverage and reduced maintenance costs

A final word on PCP

Enjoy deposit-free PCP with My Car Credit

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There are many kinds of car finance. The right one for you will depend on your unique needs and circumstances.

What is PCP car finance?

How does PCP work at the end of term?

What to do at the end of your PCP term

Make the balloon payment

Return the vehicle

Part exchange the vehicle

I can’t afford my end-of-term PCP payment – what do I do?

Discover if PCP finance is right for you with My Car Credit

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From sidestepping initial depreciation to avoiding long waitlists, used cars come with myriad benefits.

Step 1: Assess your financial situation

Step 2: Choose the right vehicle

Step 3: Shop around for the best deals

Step 4: Understand the terms

Step 5: Finalise the loan and purchase your car

Step 6: Repayment and beyond

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