Compare Cheap Car finance

How Our Car Finance Process Works

1

Check Your Eligibility

Give us some details about yourself. We will do a soft check and match you to the best broker. This will not affect your credit score.

2

Get a Personalised Quote

Our partners will look at your application. They will send you a personalised quote that suits your situation and offer you a finance offer.

3

Choose Your Car

Pick a car from our approved dealers or go with one you already found.

4

Finalise the Agreement

Look through your finance quote, sign your agreement online, and your broker will take care of all the paperwork with the dealer.

5

Drive Away

After the paperwork is done, you can take your car and be on your way.

Why Compare Car Finance with Free Price Compare?

We work with some of the top UK brokers. You get the best deals with us. There is no pressure, no confusing words, and it will not affect your credit score.

What Makes Us Different?

Get quick quotes fast with no strings attached. Apply online in just a few minutes and get a decision in as little as 60 seconds. You do not have to make any commitment. Your own account manager will help make sure the whole thing goes easy and trouble-free.

Access to Exclusive Finance Deals
We help you get in touch with top brokers like Zuto, MatchMe, and CarFinance247. They offer good APR rates. There are zero-deposit deals you can choose from. You can pick from flexible repayment terms to fit your needs.

Soft Search, No Credit Score Impact
You can check if you are eligible with a soft search. This will not change or hurt your credit score or credit rating. This way is great if you are new at this, or if you have bad credit.

Trusted, Transparent Advice
We work with brokers who are approved by the FCA. They only use responsible lending practices. You get all the terms upfront, so there are no hidden surprises. The choice to go ahead will always be up to you.

Tailored to You
No matter if you want a used car, new car, or electric vehicle, we help you find finance deals that fit your credit score and your budget.

How Car Finance Works (and What You Need to Know)

Car finance helps you pay for a new or used car in a way that suits you. You can make monthly payments that are easier to manage. You borrow an amount of money, and then pay it back with interest over time. Most people use a pcp agreement, hp finance, or a personal loan for this. The cost of car finance can change based on the type of agreement you pick.

Key Terms to Understand

Loan Amount – This is the total of money you borrow to pay for your car.
APR (Annual Percentage Rate) – This is the interest rate plus any extra fees. A lower annual percentage rate often means you have to pay less each month.
Loan Term – This is the time that you have to pay back the loan. It is usually from 12 to 60 months.
Monthly Payments – This is what you pay every month. It depends on your credit score, interest rate, and how long your loan term is.
Representative APR – This is the annual percentage rate that brokers use in ads. At least 51% of the people who get the loan will get this rate, but you might get a different one.

Popular Car Finance Options

Hire Purchase (HP):
You pay a deposit, then make fixed monthly payments. You will own the car when you make the final payment. This is a simple way for people who want to have full ownership.
Personal Contract Purchase (PCP):
This option gives you lower monthly repayments. At the end, there is a “balloon payment” if you want to keep the car. A personal contract purchase is good if you like to change cars often.
Personal Loan:
You can get money from your bank or another lender and pay for the car all at once. You will own the car right away. The monthly payments would be made to the lender, not the car seller.

Tip: You can use our car loan calculator. It will help you see what your monthly repayments and total loan cost could be before you apply.

Trusted Car Finance Brokers. Tailored to You.

We work with FCA-authorised brokers who are carefully chosen. This helps us find the car finance deal that is right for you. It does not matter what your credit score is or which vehicle you pick.

Who We Work With

Zuto is a car finance broker that has been around for a long time. They work with a wide group of lenders. This includes some who help people that have poor or little credit. On Zuto's website, you can get a fast answer about your loan. The platform also helps you find cars from UK dealerships you can trust.

CarFinance247 is one of the the UK’s biggest brokers. It links you to more than 30 lenders, so you can see your options. You can get pre-approved for finance before you pick your car. This is good if you want a used car or a nearly-new one.

MatchMe Car Finance is known for a personal touch when it comes to car loans. It gives you soft-search quotes that will not affect your credit rating. The company makes sure you get flexible terms. The finance deals are made for your needs, even if you have bad credit or do not have a deposit.

Why Use a Broker?

Compare several car finance options at one place
Get deals matched to your credit profile
Do not waste time with lenders that don’t fit
Get access to special rates and terms that can be changed
A soft search will not change your credit score

Free Price Compare works as an introducer, not as a lender. We may get a payment from brokers when you take out a finance agreement.

Compare HP Car Finance

HP finance suits those unable to pay the full amount upfront. The agreement outlines the total cost of credit, interest rate, and duration.

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How Much Can I Borrow for Car Finance?

The money you can get depends on your credit score, your monthly plan for money, and the kind of car you want. Our broker partners will check your application. They will find the best lenders for you, usually in about 60 seconds. Also, this will not affect your credit score.

Use our car finance calculator to find out what your monthly repayments might be and how much the loan will cost in total before you apply.

What Affects Your Borrowing Power?

Credit Score – When you have a higher credit score, it can help you get a lower APR. You could also be able to get a bigger loan offer.
Income & Expenses – How much you can afford each month is important. Lenders look at both your income and your regular costs.
Car Type & Age – Some lenders will give you different deals if the car is new or used.
Loan Term – A longer loan term often leads to lower monthly payments. But, you will pay more interest over time.
Deposit Amount – If you make a bigger upfront payment, you may need to borrow less.

Representative Example:

If you borrow £8,000 for 60 months at a representative APR of 19.7%, you will have to pay £204 every month. Over that time, the total amount that you need to pay will be £12,219. This total amount includes £4,219 paid in interest.

Free Price Compare is an introducer, not a lender. We work with different FCA-authorised brokers. These include Zuto, MatchMe, and CarFinance247. If you get a finance agreement with one of our partners, we may get a commission. The rate you get will depend on your own situation.

How to Apply for Car Finance in Just a Few Steps

Applying for car finance through Free Price Compare is fast and safe. It will not affect your credit score. No matter if you want a new or used car, our partners and wide panel of lenders will help make the whole process easy. From getting a quote to driving your car, you can count on us.

Here's How It Works:

Check Your Eligibility (No Credit Impact)
Let us know about your budget and the kind of vehicle you want. We will do a soft search to show you your options. This step will not affect your credit score.
Get Matched to a Broker
We will link you with one of our UK partners, like Zuto, MatchMe, or CarFinance247. They will work with you to find the best deal for you, based on what you need and your profile.
Choose Your Car
You can choose from thousands of cars that have been checked and approved by dealers. Or, if you already have a car you like, you can bring your own.
Finalise Your Agreement
Go over your own offer. Sign it online when you are ready. Your broker will handle the paperwork with the dealership for you.

Collect your car or set up delivery. Now, you are all set to drive away.

Tip: You do not have to pick the car before you apply. It is a good idea to get pre-approved first. That way, you can shop with more confidence.

Compare Popular Car Finance Options

Not sure which kind of car finance you should pick? It can be hard to know what works best for you. This is true if you want a brand-new car or a used one that just gets you from A to B. Here is a simple look at the most popular car finance options you can find in the UK. These choices can help you get the car you want and feel good about your pick.

Finance Type Comparison

Finance Type	Who It's Best For	Key Features
Hire Purchase (HP)	Want to own the car outright with fixed monthly payments	- Pay deposit + monthly payments - You own the car after final payment - No mileage restrictions
Personal Contract Purchase (PCP)	Want lower monthly payments with flexibility at the end	- Smaller monthly payments - Optional balloon payment - Return, trade in or buy at end of term
Personal Contract Hire (PCH)	Prefer leasing without ownership	- Fixed-term car lease - No option to buy - Great for business or short-term use
Used Car Finance	Buying a second-hand vehicle	- Lower upfront cost - Available with HP or PCP - Lenders may have mileage/age limits

Quick Tips:

PCP often comes with lower monthly payments than HP. But, there is a balloon payment at the end if you want to keep the car.
With HP, you will own the car completely when you finish paying it off. There are no surprises.
PCH works well if you do not want to own the car at all. You just pay a set amount every month for the lease.

Use Our Car Finance Calculator

If you want to know what your monthly repayments will be before you apply, you can use the calculator below. It will help you see how much you might be able to borrow. You can also check what your monthly payments could look like and find out the full cost of your car finance.

It's fast, does not cost anything, and it will not hurt your credit score.

What You Can Estimate:

Your monthly repayments will depend on the loan amount and how long you take to pay it back.
The total cost adds up all the interest (APR) to what you pay back.
Putting down different amounts as a deposit will change your payments.
It matters if you pick PCP or HP, as it will change what you pay and how the plan works.

Tip: Use the tool below when you want to plan your budget. It is very helpful if you are looking at different car types. You can also change the loan amount and the time to pay it back. This way, you can see what fits your monthly budget.

Use our car finance calculator

Explore Various finance options cater to different financial circumstances, and researching these options can help find the best deal.

Get Quotes

Financing an Electric Car (EV)

Are you thinking about getting an electric car? You can buy a new one or a used one. The way electric car finance works is a lot like the way regular car finance works. But there are some things that are not the same. It is good to be aware of these small differences before you make a choice.

What to Know About EV Finance in the UK

Higher upfront costs – EVs can be costly to buy, but PCP lets you have lower monthly payments.
Zero-emission options – A lot of lenders help people get low or zero-emission cars. The rates are often good.
Used EVs – It is now easier to get finance for a used electric car. More lenders offer terms that fit these cars.
Salary sacrifice vs finance – If you work for someone, check if using salary sacrifice instead of a standard finance agreement can save you more money on tax.

EVs can have different insurance and service costs compared to petrol or diesel cars. Always look at the total price of owning the car when you plan your budget.

Should You Finance a New or Used Car?

Both new and used car finance options can be good. The right one for you will depend on your budget, your lifestyle, and how many years you plan to keep the car. Here is a quick comparison to help you make the best choice for you.

Comparison Table

Feature	New Car Finance	Used Car Finance
Upfront Cost	Higher	Lower
Depreciation	Steep in first 2–3 years	Slower after initial drop
Monthly Payments	Can be lower with PCP	Often higher APR, shorter terms
Vehicle Condition	Brand new, full warranty	May have wear/mileage
Finance Options	PCP, HP, PCH	PCP, HP (some lenders limit term)
Best For	New tech, low emissions, long-term keepers	Budget buyers, short-term use, better value

When you plan to pay over three or more years and want to skip MOTs or pay less for fixing the car, a new car could be better for you. If saving money or spending less at the start is what you get, then used car finance is good.

Important Factors to Consider Before Financing a Car

Before you say yes to a finance agreement, you need to look at more than just the monthly payment. A car finance agreement is not for a short time. You will have it for years, so the choice you make needs to fit your money situation and what you want in the future. Make sure it works for you now and later on.

Key things to consider:

Credit history – Your credit score plays a big part in if you can get the loan and what APR you'll get. A higher credit score can mean you get better rates.
Affordability – You need to check what you can really afford to pay each month. This should include not just the monthly payments, but also insurance, tax, and fuel costs.
Total cost of ownership – Make sure you look at the whole cost, not just the monthly payment. This means all interest, fees, and the balloon payment if you're choosing PCP.
Vehicle usage – Think about how much you drive. Many PCP and leasing deals have limits on miles, so you need to keep this in mind.
Length of agreement – A longer deal can bring down monthly payments, but you will pay more in total interest over time.
Deposit – Some deals do not Ask for a deposit, but if you put more money down at the start, you may get lower monthly payments and save on interest in the long run.

Be sure to read the finance agreement before you sign. You should know your rights and your duties. Take time to understand what will happen if you want to change or end the deal early.

Car Finance with Bad Credit

Having a low credit score does not mean you will never get car finance. There are many lenders in the UK that help people who have missed payments, gone through defaults, or who have a short credit history. They work to find finance options that you can afford.

What you should know:

Some brokers and lenders have deals for people who have a bad credit score or a short credit history.
You may have to pay a higher APR. The lender charges this because there is more risk for them.
A soft search helps you see if you meet the rules. This will not hurt your credit score.
The lender may want you to pay a bigger deposit. This is to help lower their risk.
If you pay your bills on time, it can help make your credit score better.

It is a good idea to always look at several bad credit car finance deals before you pick one. Stay away from lenders who say you have a guaranteed approval and do not check anything. These deals often have high fees or bad rules.

Can I Get Car Finance with Negative Equity?

Negative equity is when you have a finance agreement, and your car is worth less than what you still owe on it. This can make it hard to trade in or switch your car. But, it does not mean you cannot get a new finance deal.

Key points:

Some lenders give you finance choices that let you add your negative equity into a new deal.
You can expect to have higher monthly payments or may need to pay a bigger deposit to make up for the gap.
It is important to know how much more you will pay overall before you go ahead.
People often use this kind of finance when they want to upgrade or switch their vehicles sooner than they first thought.

If you have negative equity, you should talk to a broker about the options you have before you look at refinancing. Sometimes, it can be a good idea to keep your current agreement and wait for the balance to improve. This could be better for you in the long run.

Compare Negative Equity Car Loan

Car finance with negative equity also tends to come with higher interest rates due to the increased risk for the lenders.

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UK Car Finance Market Trends (2025)

The UK car finance market is showing good recovery and change in 2025. This is clear, especially when you look at new car deals and the growing number of electric vehicles (EVs).

New Car Finance Is Growing

Consumer new car finance deals went up by 21% in March 2025 compared to last year at the same time. The amount of money in new business was also up by 25%. This rise happened because the new car registration plates came out and many people wanted to buy before the vehicle excise duty went up.
(Source: Motor Finance Online, Car Dealer Magazine)

Used Car Finance Mixed

In early 2025, more people chose new car finance, but there was a 3% drop in the number of used car finance deals. Still, the total value of new used car agreements went up by 9% in March. This shows that people might be getting higher-value cars or picking longer finance terms.
(Source: Motor Finance Online)

Finance Rates Becoming More Competitive

The average interest rate for new car finance has gone down from 6.6% to 5.4% since last year. This drop can help people who want to buy a new car, even though prices are still going up because of inflation. (Source: The Times)

EV Finance Is Expanding

Battery electric vehicle (BEV) registrations have gone up by 35.2% in 2025. Now, more people are choosing EVs. EVs are now over 20% of all new car finance deals. The government is also thinking about giving state-backed loans with low interest for EV buyers. This could help more people get into new car ownership with an electric vehicle.
(Source: Motor Finance Online, Financial Times)

Regulatory Developments to Watch

The Financial Conduct Authority (FCA) is now looking into how car finance companies and brokers told customers about commission in the past. If it is found that many people did not get fair information, lenders and brokers may have to pay as much as £18 billion in compensation. This shows how serious the matter could be for them.
(Source: The Times)

Forecast to 2030

The UK automotive finance market is set to grow each year by about 7.6%. By the year 2030, it will likely reach almost £28.7 billion in total lending. This is based on data from Grand View Research.

Our Car Expert Comments:

Charlotte Yates

Personal finance content expert

Ready to Compare Car Finance Deals?

Get started in just a few minutes. We will match you with a trusted UK car finance broker like Zuto, MatchMe, or CarFinance247. The team will help you find a good deal that fits with your credit score, your budget, and your car choice.

There is no need for you to move forward if you do not want to. Checking to see if you are eligible will not hurt your credit score.

Car Finance FAQs: Everything You Need to Know

Car finance lets you pay for a car over time instead of paying all the money at once. You borrow money from a lender, and you pay it back every month with some interest added. With some types of finance, you will own the car right away. With others, you own the car when you finish paying at the end of the deal.

The most common types are:

Hire Purchase (HP) – you have the car as your own after you make the last payment.
Personal Contract Purchase (PCP) – your monthly payments are lower, but at the end, you can choose to pay a big final balloon payment if you want to keep the car.
Personal Contract Hire (PCH) – this is a lease where you drive the car, but you do not get an option to own it.
Personal loan – you borrow money to buy the car, so it is yours right from the start.

Yes, there are many lenders that help people who have a low or limited credit score. The interest rates can be higher for them. If you use a soft search to check if you are eligible, it will not lower your credit score.

PCP lets you have lower monthly payments on your car. But, if you want to keep the car at the end of the deal, you must pay a final balloon payment. With HP, your monthly payments are higher. However, you will own the car at the end without any extra payments. The choice is up to you. It depends on if you want to own the car and how long you want to keep it.

Not always. Some lenders might let you get a car with no deposit. But, if you put money down, your monthly payments can be lower. You may also end up paying less in total interest.

Most applications get reviewed right away. A lot of our broker partners can give you a decision in just 60 seconds. They do this by using a soft credit check.

You can use a soft search tool to check if you are eligible, and this will not leave a mark on your credit file. A full credit check will be done only if you decide to go forward with a finance agreement.

Yes, both PCP and HP are often used for buying second-hand vehicles. You can get used car finance for most makes and models. It will depend on the age and how many miles the car has.

Buying a car outright means you will not pay any interest charges. But using car finance lets you own a car with smaller payments each month. The right choice for you will depend on your money goals, your credit, and if you want the option to get a new car often.

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