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%.
The Admin Fee is a £199 fee that helps cover the costs of setting up your finance agreement. It covers things like preparing your agreement documents, carrying out credit and identity checks, and arranging payment to the broker. This fee is paid at the same time as your first payment, and it isn't refundable. It's separate from your deposit and from any other charges on your agreement.
The Optional Purchase Fee is a £199 fee you only pay if you decide to buy the car at the end of your finance agreement. You don't have to buy the car, that's entirely your choice. If you choose to hand the car back instead, you won't pay this fee. If you decide to keep the car, you'll need to pay the £199 Optional Purchase Fee, usually along with your final payment, to transfer legal ownership of the vehicle to you. This fee covers the cost of finalising your agreement and removing our interest in the vehicle. It's separate from your deposit and from any other charges on your agreement.
The amount shown is an illustration of a typical monthly payment based on the Representative APR. These figures are for guidance only; the actual payments and rate you're offered will depend on your individual circumstances and are not guaranteed. Please see below for details of how your first and final payments may be different.
How to apply for car finance
Applying for car finance doesn’t need to be complicated. Whether you’re buying your first car, looking for a used vehicle, or need a flexible option like car finance with zero deposit, this guide will help you understand how the application process works and what you’ll need to get started.
One of the easiest ways to apply for car finance is online. Most lenders, finance brokers, and car dealers offer simple online applications that only take a few minutes to complete.
Before you apply, check your credit score. This gives you a good idea of your chances of approval and what interest rate you may be offered. Even if your score isn’t perfect, there are lenders that specialise in car finance for bad credit.
You can also explore options like hire purchase (HP), personal contract purchase (PCP), or leasing. At AutoMoney, we only offer HP finance, which gives you the option to own the car at the end of the agreement.
To apply for car finance, you’ll need to give some basic personal and financial information. This helps the lender understand your circumstances and assess your application.
You’ll usually be asked for:
Having all this information to hand can help you become more prepared for your finance application.
Yes. Many lenders now offer what's called a quotation search or soft credit check. This allows you to see example rates and repayment terms without leaving a mark on your credit file.
This is useful if you're comparing car finance deals or if you’re worried about your credit score. A soft check won’t affect your chances of being approved elsewhere, so you can explore different offers safely.
Once you’re happy with a quote, the lender will usually carry out a full credit check before giving final approval.
There are three main routes for making a car finance application:
All of these car finance options are accessible to customers. The best route for you depends on how you prefer to manage your application. Whatever option you choose, make sure to compare interest rates, agreement terms, and whether zero deposit car finance is available
Once you submit your application, the lender will assess your details and credit file. If you’re approved, they’ll send you a finance offer.
This will include:
Make sure you understand the full cost of the finance, not just the monthly payment. Some options, like PCP, have a large final payment if you want to own the car, while HP finance gives you ownership once all payments are made.
Some people apply for finance after choosing a car, while others get approved first so they know the amount they have been approved for. Either way of applying is fine, but it’s best to avoid making a final decision until your finance is confirmed.
If you're applying with a lender or broker, you’ll usually be asked to provide details about the car you want to finance. This might include the make, model, mileage, and cost.
Make sure the car matches the finance agreement, for example, PCP may have mileage limits, while HP has fewer restrictions. If you’re still deciding, check out our guides on how to choose a car and what to look for when buying a second hand car.
Once your agreement is signed and processed, you’ll be ready to collect your car. But before you drive away, there are a few important checks to make.
Inspect the car carefully, inside and out. Look for any signs of damage or faults, and make sure all the features are working. Check that the mileage, model, and condition match what was promised in the advert listing.
If there’s a problem, report it straight away. When buying a car on finance, your contract is with both the lender and the dealer, so you’re protected under the Consumer Rights Act if the car isn’t as described or develops faults within a certain period of time.
