Representative Example: You could borrow £10,699 over 60 months with an initial payment of £495.89 (including £199 Admin Fee) followed by 58 monthly payments of £296.89 with a final payment of £495.89 (including optional £199 Option to Purchase Fee). Total amount repayable will be £19,012,40. 26.1% APR, annual interest rate (fixed) 13.3%.
Here are some of the most frequently asked questions we get from customers about car finance. Whether you’re just getting started or need help understanding your agreement, we aim to give clear, honest, and straightforward answers. Our goal is to make car finance as simple.
Yes, however, restrictions apply to the number of times you can change your payment date during the term of your loan. Changing your payment date may impact the amount that you must pay back in total. Please get in touch if you would like to discuss changing your payment date.
If your payment is late, we may report it to credit reference agencies the next day (depending on our reporting schedule). This will show on your credit file for up to six years and may affect your credit rating. Other lenders can see this information and may take it into account when deciding whether to offer you credit. Missed payments can suggest financial difficulty, which may lead to a declined application or higher interest rates, as lenders need to manage their risk.
If you're facing long-term financial difficulties, you may have the right to voluntarily terminate your hire purchase agreement under UK law. This allows you to end your agreement and stop future payments, but you must return the car. You may still owe money if you're in arrears, haven’t paid at least half the total amount, or haven’t kept the car in reasonable condition. The impact of voluntary termination depends on factors like the car’s value, how much you’ve paid so far, and any deposit. You’ll find more details on page 2 of your hire purchase agreement, or you can contact us to discuss your options.
If you are struggling financially, please get in touch with us as soon as you are aware of any issues with making your repayment. We understand that sometimes life does not go to plan. Once we understand your individual circumstances, we will be able to work with you to find a solution. Any payment arrangement will be affordable and sustainable we will never expect you to pay more than you can afford.
Yes, your HP car finance agreement is subject to the following fees:
We may also charge fees if you break the rules of your agreement with us. For example, if a payment you owe does not get to us, or if we have to issue you with a default notice.
Full details of all of our charges can be found on your hire purchase agreement. Any charges we apply will be proportionate to the actual cost to us.
Some customers are introduced to us by business partners of ours, for example a broker or a car dealer.
Like all HP car finance lenders, we pay business partners for the work they do when introducing customers to us.
It is important to note that any commission we pay does not affect the interest rate you pay through your HP car finance agreement, or any associated fees. It is a business cost to us.
Where a commission is paid by us, the amount of commission we are paying is set out in the section of your agreement headed “Commission”. This is because we want to be completely transparent with you, not because your costs are affected.
The Financial Conduct Authority is investigating so-called “discretionary commission arrangements” in the motor finance market. Find out more here.
Yes, you can. At AutoMoney Motor Finance, we consider applications from a wide range of credit profiles, including those with a lower credit score. We work with customers to find suitable finance options based on individual circumstances not just credit history.
Each car finance lender may have slightly different requirements, but typically, based on your application, you may be asked to provide one or more of the following:
Providing the right documents early on makes it easier to process your application efficiently.
With a Hire Purchase agreement, you make monthly payments and own the car at the end. PCP (Personal Contract Purchase) typically offers lower monthly payments, but you’ll have a larger final (balloon) payment if you want to keep the car. Otherwise, you can return it or upgrade to a new one.
Yes, it’s possible. Even if you’ve been declined elsewhere, some lenders look at your full financial situation, not just your credit score. We may be able to help you find a finance option that works for you.
Some agreements include early repayment charges, while others don’t. It depends on your lender and the terms of your agreement. Always check your contract or speak to the lender if you’re thinking about settling early. AutoMoney Motor Finance does not charge any early repayment fees.
A fixed rate keeps your monthly payments the same, so you’ll always know exactly what you’ll be paying. Variable rates can change during the term, which might save you money—but could also lead to higher payments. AutoMoney Motor Finance only offers fixed interest rates.
Longer terms, like 5–7 years, can lower your monthly payments but may increase the total amount of interest paid. Shorter terms mean higher monthly payments but reduce the length of your agreement and the overall interest you’ll pay.
Ownership only transfers once you’ve made all the payments, including the final “option to purchase” fee.
If you fall behind on your payments, the vehicle could be taken back, and you may still owe money.
Like all used cars, the vehicle may depreciate over time, which means you might pay more than it’s eventually worth.
This level of cover is required throughout the agreement and can be more expensive than basic insurance.
Missing or late payments may harm your credit rating and make it harder to borrow in the future.
Because you’re borrowing over time, you’ll pay interest and fees on top of the car’s value.
