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Car Finance in Doncaster, Milton Keynes and Luton

Spreading the cost of your new vehicle over a pre-agreed term often makes your purchase so much more affordable. However, there is a lot to consider and it can be quite daunting looking at different funding options. That is why here at Perrys Used Car Outlet we have put together some videos to explain each of the different methods of car finance we offer, plus some frequently asked questions to help you navigate your options.


Car Finance FAQs

Should I Buy a Car on Finance?

There are several benefits to purchasing a car on finance, but the decision should ultimately depend on your financial circumstances and preferences.

When you take out a car finance agreement, you are forming what is referred to as a ‘tri-party' agreement, meaning that yourself, the supplier and the finance company each have a vested interest in the car until your agreement ends, regardless of how big of a deposit you've paid. This can be useful should you encounter any problems, as the finance company is inclined to rectify them.

Taking out car finance as opposed to buying a car outright does mean you'll have monthly payments to account for, as opposed to one lump sum when buying your vehicle outright.

It's extremely important that your decision is based on what you can realistically afford – don’t over-stretch yourself!

What's the difference between PCP, HP and a Personal Loan?

To show the differences between the three types of car finance we offer, we've listed each one's unique features below:

Unique Features of PCP (Personal Contract Plan)

  • You can easily swap to a new car at the end of your PCP agreement
  • The monthly payments tend to be lower
  • You can encounter additional charges for going over your mileage allowance or damage
  • You don't own the car (unless you choose to buy it at the end of your agreement) - you're technically renting it
  • If you want to keep the car at the end of your contract, you'll have to pay what's referred to as a “balloon payment”, or a “minimum guaranteed future value” – this is the remaining sum owed on your agreement
  • Monthly payments are fixed, so you know what to expect and can budget around your other expenses

Unique Features of HP (Hire Purchase)

  • You own the car at the end of the agreement after the final payment has been made
  • You have a fixed rate of interest, and fixed payments for the duration of the agreement
  • You can choose to repay early to save on interest
  • There is a relatively low initial deposit up to 10% of the car's price

Unique Features of a Personal Loan

  • You don't always need a deposit
  • Personal loans for cars tend to be less easily available - you'll need a good credit history to obtain one
  • You can't terminate the arrangement early
  • You'll need to visit the bank to arrange the loan

Can you Apply for Car Finance to be in Joint Names?

No. If you're applying for car finance, it must be in the main driver's name only.

Can Car Finance be Paid Off Early?

You can pay off your car finance early, but you may have to pay a fee for early termination, depending on the lender.

Can Car Finance be Transferred to Another Car?

In some cases, you can refinance and set up a new deal with another car – speak to us at Perrys Used Car Outlet if you want to find out more about this.

Will a Car Finance Application Have an Impact on my Credit Rating?

Applying for car finance will require what's referred to as a ‘hard search' of your credit report. This is likely to show on your credit record, and if you have several hard searches on your report in quick succession, it can have a negative impact.

At Perrys Used Car Outlet, our pre-approval process lets you check whether or not you're likely to be eligible for car finance by conducting what's referred to as a 'soft search' of your credit report. This doesn't affect your credit score, as the trace it leaves on your report can't be seen by future potential lenders.

If you have found it hard to get car finance in the past, it might be worth speaking to us at Perrys Used Car Outlet as we can put you in touch with a provider who will lend to you.

The pre-approval process simply helps you to work out what you're eligible for, without damaging your credit score.

Start your free check

Can I Part Exchange My Current Car?

If you have a car to part exchange, you can use this as payment towards your car finance plan. To find out more about part exchanging your car, head to our part exchange page.

Can I Get Car Finance if I Have Bad Credit?

Car finance with bad credit is not guaranteed, however, we work with a great variety of lenders to find the right deals for our customers. We offer options for those who have had credit issues in the past, so get in touch with us if you’d like to find out more.

Can you Buy Used Cars on Finance?

Yes, you can buy a used car on finance – find out more about the different options above.