Guide to car finance

At Oodle, we understand that a new car can carry a big cost, and waiting to save might not always be an option – especially if you’re current car breaks down or your family circumstances change.

 

Car finance can be a good solution, allowing you to spread the cost over months or years. However, it's important to explore your options before committing to credit.

At Oodle, we understand that a new car can carry a big cost, and waiting to save might not always be an option – especially if you’re current car breaks down or your family circumstances change.

 

Car finance can be a good solution, allowing you to spread the cost over months or years. However, it's important to explore your options before committing to credit.

At Oodle, we understand that a new car can carry a big cost, and waiting to save might not always be an option – especially if you’re current car breaks down or your family circumstances change.

 

Car finance can be a good solution, allowing you to spread the cost over months or years. However, it's important to explore your options before committing to credit.

17.1% APR Representative

Types of Car Finance:

Here we take a look at the different types of car finance available.

Benefits of hire purchase illustration
Benefits of hire purchase illustration

Unsecured Personal Loan

A loan is a way to borrow some or all of the money you need to buy a car, at a fixed interest rate. With a personal loan, you’ll own the vehicle from day one – but approval can require a better credit score. This can be a good option for people who don’t plan on changing their car often.


Our car loan is the only type of finance we offer on our website.

A loan is a way to borrow some or all of the money you need to buy a car, at a fixed interest rate. With a personal loan, you’ll own the vehicle from day one – but approval can require a better credit score. This can be a good option for people who don’t plan on changing their car often.


Our car loan is the only type of finance we offer on our website.

A loan is a way to borrow some or all of the money you need to buy a car, at a fixed interest rate. With a personal loan, you’ll own the vehicle from day one – but approval can require a better credit score. This can be a good option for people who don’t plan on changing their car often.


Our car loan is the only type of finance we offer on our website.

Representative Rate APR X%

Hire Purchase (HP)

With hire purchase, you usually pay a relatively low deposit (normally 10%) before paying off the cost of the car in fixed monthly payments. You won't own the car until the final payment and any additional fees.

Benefits of hire purchase illustration
Benefits of hire purchase illustration

Personal Contract Purchase (PCP)

An option to pay a deposit (normally 10%) and then make fixed monthly payments. You’ll have options to buy or return the car at the end of the contract with a balloon payment. Interest rates may be higher, and it’s important to make sure you understand the terms of the contract before you sign.

Leasing

When you lease a car, you’re paying for the use of the car without ever owning it. It’s a bit like renting and can be a flexible option, especially if you like changing cars frequently. Monthly costs may be lower, but extra charges can apply, for things like additional mileage or 'excessive wear and tear' fees.

Benefits of hire purchase illustration
Personal Loan
Hire Purchase (HP)
Personal Contract Purchase (PCP)
Personal Contract Purchase (PCP)
Leasing
Own the car
from the start
Own the car at the end of the agreement
Needs a deposit
Optional final payment to own the car
Own the car from the start
Personal Loan
Own the car
at the end of
the agreement
Optional final payment to own the car
Option to purchase fee
(once you’ve paid the option to purchase fee)
Optional
Usually
Hire Purchase (HP)
Own the car from the start
Own the car at the end of the agreement
Needs a deposit
Needs a deposit
Personal Contract Purchase (PCP)
Usually
Usually
Usually
Own the car from the start
Own the car at the end of the agreement
Optional
Needs a deposit
Usually
Optional final payment to own the car
Optional final payment to own the car
Leasing
Option to purchase fee
Own the car from the start
Own the car at the end of the agreement
Needs a deposit
Usually
Optional final payment to own the car

A personal ‘Car Loan’ is the only type of car finance we offer to customers applying via our website.

Man checking car finance credit score on mobile phone
Man checking car finance credit score on mobile phone

Getting accepted for Car Finance

Maintaining a good credit score is the best way to improve your chances of acceptance. Sticking to monthly payments, using a budget, avoiding too many credit commitments, and check your credit report regularly to  help keep your score in good health.

 

When you apply for a car loan with Oodle, we’ll let you know if you’ll be pre-approved for credit without affecting your credit score.

 

You can find out more about Credit Scores and credit checks here:

What to think about before you apply:

Work out your budget and an affordable monthly payment

Understand the different finance types and loan durations

Decide whether you want to own the car or not and how long you want to it for?

Factor in ongoing costs like insurance, tax, and maintenance.