Autedia is a credit broker, not a lender. We partner with CarFinance 247 Limited, a credit broker (not a lender), to help find you the best car finance deal for your circumstances from their wide panel of lenders.

Rates from 8.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £143.76 per month, with a total cost of credit of £2125.46 and a total amount payable of £8625.46.

What is car finance?

Car finance is the catch-all term used to describe a type of loan agreement that allows you to split the cost of buying a new or used car over a set period of time.

You’ll typically take out a secured or unsecured loan with a lender and make fixed monthly payments, plus interest, in return. Terms and conditions may also apply, such as agreeing on a set annual mileage or keeping the car in good condition.

If you can’t afford to buy a car outright or would like to have more flexibility when buying a car, car finance could be a good option for you.

How car finance works through Autedia

Get a quote

Complete our short application form and find out if you’re eligible for a car loan in minutes.

Meet your account manager

Here to help every step of the way – look out for their call! You can chat over text or WhatsApp too.

Choose a car

Whether you’re looking for a hot hatch or a chic supermini, explore over 100k used cars in the car search or find your dream wheels from any reputable UK dealer.

Hit the road!

You set the pace; tell us exactly what you’re looking for and we’ll handle the rest. You could be driving away in days!

How does car finance work?

Most car finance agreements are split into three stages:

  • The deposit
    While no deposit options are available, a large deposit can reduce the amount you need to borrow and may improve your loan eligibility.
  • The loan term
    Depending on the type of agreement you have, your loan term could last from one to six years. Throughout this time, you’ll typically need to make a fixed payment each month.
  • The end of the agreement
    With an HP car finance deal, you’ll become the car’s legal owner at the end of the agreement. If you choose a PCP deal, you’ll have more options to explore.

What are the different types of car finance available?

There are several different ways to pay for a car, but these are three of the most popular car financing options:

Hire Purchase (HP)

Hire Purchase or HP car finance is one of the most common ways to buy a car. This type of loan is secured against the vehicle and will split the purchase price into fixed monthly repayments for a period of one to six years. You may need to put down a deposit upfront (although no deposit loans are available). Once you reach the end of the agreement, you’ll become the car’s legal owner.

Personal Contract Purchase (PCP)

Personal Contract Purchase or PCP car loans work a lot like HP but offer you more options at the end of the agreement. Instead of borrowing the full purchase price, you’ll only need a loan to cover the amount of value the lender thinks your car will lose during the loan term. PCPs can give you lower monthly repayments, and if you don’t want to pay the outstanding value (known as the balloon payment) to become the car’s legal owner, you can simply hand it back at the end of the term.

Personal Loan

Personal car loans are typically unsecured, which means you’ll become the car’s legal owner as soon as you use the loan to pay the dealer. If you keep up your repayments throughout the loan term, you can do whatever you like with the car, including selling it. However, as unsecured loans pose more of a risk to the lender, you may need to have a good credit score to qualify.

Why should you choose Autedia for your car finance?

Large panel of lenders

We’ll look to find you the best available deal from a wide panel of lenders.

No effect on credit score

Get a no-obligation quote that won’t affect your credit score unless you choose to proceed.

Total flexibility

HP, PCP, no deposit? We work with lenders that can offer it all – and we consider all circumstances.

Access to more than 100,000 cars

Get access to a car search with over 100k quality used cars stocked by trusted dealers all over the UK.

Dedicated account manager

Get support from a dedicated account manager who'll guide you through the process, take care of all the checks, and handle the paperwork.

How can I get the best car finance option for me?

The best car finance option for you will depend on the type of car you want to buy, how you want to drive it and your circumstances.

If you have a good credit score and want to own the car immediately, a personal loan might be your best option. In contrast, an HP deal could be a better choice if your credit score could do with some work and you don’t want to worry about any mileage restrictions. If you’d rather have lower monthly repayments and some flexibility at the end of the loan term, then perhaps you could consider PCP.

At Autedia, we’ll always look to find you the best available deal for your circumstances from a wide panel of lenders.

How much does car finance cost?

The cost of car finance is made up of the total loan amount plus interest, fees, and any deposit that you put down upfront. The rate of interest you’re offered will depend on the lender that approves you and your credit history.

The loan term can also affect the overall cost of your car finance; a longer loan period will often come with lower monthly payments, but you might pay more in interest.

Double-check your car finance agreement to ensure you’re comfortable with the total amount payable on the loan before you sign.

What happens at the end of a car finance agreement?

If you have a personal loan, you’ll own the car straightaway, so nothing will change once you reach the end of the car finance agreement aside from no longer having to make monthly payments.

When you reach the end of the loan term with an HP loan, you’ll usually have to pay a small Option to Purchase admin fee. Once paid, you’ll become the car’s legal owner. You’re then free to modify or sell it if you wish.

With a PCP loan, you have more options. At the end of the car finance agreement, you can choose to buy the car by paying the one-off balloon payment, hand it back to the lender, or use any positive equity as a deposit in a new deal.

Car Finance Calculator

5 years
Total cost of credit2,125.46
Total repayment8,625.46
60 monthly
payments of
£14376

Rates from 8.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £143.76 per month, with a total cost of credit of £2125.46 and a total amount payable of £8625.46.

FAQs – How car finance works

Do I have to buy a car from you?
No, you can choose a car from any reputable dealer in the UK. Our partner Car Finance 247’s car search is home to over 100,000 used vehicles from trusted dealers, so it can be a great place to kick-start your search! You’ll receive access to the car search as soon as you apply for a loan.
Can I apply for car finance with a bad credit score?
Yes, a bad or poor credit score doesn’t have to stop you from securing car finance. At Autedia, we work with a wide panel of lenders, including some who specialise in offering loans to people with a less-than-perfect credit history – even if you’ve been refused elsewhere.
Does applying for car finance affect my credit score?
No, we’ll run a soft credit check when you apply for car finance with Autedia. This is used to assess your eligibility for a loan and shouldn’t affect your credit score in any way. You can see soft searches on your credit report, but they aren’t visible to any lenders.

Only if you decide to proceed with a loan option and take the next step will a hard credit check, which is marked on your report, occur.

What credit score do I need to get car finance?
No credit score will guarantee you’ll get a car finance loan. A higher credit score may make it easier, but people with bad credit scores can also find finance options. Your credit score is not the only factor that lenders consider; your affordability, employment status, and deposit will also play a role in the lender’s final decision.
What's the difference between secured and unsecured car finance?
When you have an asset like a car, a loan can be secured against it. This means that if you cannot make payments, the lender could take steps to repossess the car to recover their funds. They will also remain its legal owner throughout the loan term. An unsecured loan is not attached to an asset and poses more of a risk to the lender, which is why this type of finance often requires the borrower to have a good credit history.
Am I eligible for a car loan?
Your car loan eligibility will depend on several factors, including your credit score, affordability, employment status, and deposit amount. At Autedia, we work with a panel of lenders, which means we can look to find car loans for people with a wide variety of different circumstances. Lenders on the panel specialise in providing finance for people with bad credit scores, young drivers, and people with no deposit.
Who owns a car on finance?
With HP or PCP finance, the loan is secured against your vehicle, which means the lender will be the car’s legal owner throughout the loan term. While you’ll be its registered keeper and responsible for its upkeep and maintenance costs, you won’t be able to sell or modify the car until you become its legal owner.

With a personal loan, you’ll become the car’s owner straightaway.

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