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Used car finance guide

Tailored packages to suit you

Car financing made easy




There are numerous ways you can pay for your car. Finance solutions are now the most popular way to buy a car in the UK - allowing you to get behind a wheel of something you wouldn't necessarily be able to afford if you paid in one large lump sum of cash.

bravoauto understands that car finance can be confusing, especially if you are in the market for your first car or you have never used finance to buy a car before, that's why we've tried to make it as simple as possible. And with a 6.9% representative interest rate, we've also made it as affordable as possible too.

There are two core options when it comes to financing: hire purchase or personal contract purchase. We also offer solutions for those with bad credit. Both of these options have key benefits, most of which you don't get when taking out a loan from a bank or money comparison site. 

The best deal for you will depend on your budget, whether you want to upgrade your car in a few years' time, and whether you want to own a vehicle outright. Why not watch our video below to find out more?

Personal Contract Purchase or PCP is becoming more popular every year. This finance option gives you the advantage of fixed monthly payments and exceptional flexibility at the end of the agreement. Plus, the deposit required can often be lowered to suit your needs. With this option you pay the difference between the purchase price of the car and it's Guaranteed Future Value in a set number of months (usually 24, 36 or 48).

At the end of your PCP agreement, there are usually three choices available to you. 

Retain - Buy the car by paying an optional final payment
Return - Return the car with nothing more to pay, subject to mileage and condition.
Renew - Part-exchange your car, and if there is any remaining equity after the final payment is taken care of, this is yours to use as deposit or take as cash-back
 

Hire Purchase or HP is perhaps the most traditional finance options. It's easiest to think of it as hiring the car until you've paid off its value - and then it's yours to keep.

The monthly payments are determined via the amount of deposit initially paid, the period of the contract and the overall price of the vehicle. Deposit amounts are usually around 10% of the purchase price, but can be more if you wish.

It is often seen as the most flexible finance option, since there are no mileage restrictions and it's normally straightforward to acquire a settlement figure to purchase the car in full any time.
car on finance


Learn more...

Car finance can offer advantages over using cash or an unsecured loan for many customers. You’ll receive additional consumer protection that is not available with cash or unsecured loans. The application process is shorter, faster and less intrusive with a higher acceptance level as car finance is secured directly on the asset, like a mortgage. This keeps your non-car orientated borrowing credit line free. Car finance is also very flexible and could protect you against excessive depreciation.  Perhaps most importantly, you only borrow exactly what you need to complete your purchase and not a penny more!

The two most popular options when buying used cars are hire purchase (HP) and personal contract purchase (PCP). The one you choose will simply depend on your own situation and the age and mileage of the car your wish to buy. By choosing finance, you will normally benefit from a shorter, faster application process and a faster decision compared to unsecured lending. You are also more likely to be accepted, since the finance is secured against the car, like a mortgage, keeping your other lines of credit free.

Yes, definitely. We can offer a wide variety of term lengths, rather than the 6 or 12 months 'blocks' offered by many lenders. We can arrange a loan for 38, 45, or even 57 months to ensure you aren’t paying unnecessary interest on a term longer than was required. You can make additional payments at any time to reduce the overall term of your loan, benefitting from a lesser interest charge overall. And you'll receive additional consumer protection, meaning that you have more rights over your purchase than with a loan, such as with voluntary termination or Section 75 protection. 

 

Hire purchase - or HP - is probably the simplest and most often available of the three, which might explain why it's the most popular among motorists. After you've chosen your car, you'll be required to agree a deposit before working with the provider to determine a payment term. With these two elements decided, your monthly payment amounts will be determined. Providing you've kept up with payments throughout, the vehicle will be all yours at the end of the agreement term.

Personal contract purchase - or PCP - is often considered the most flexible option. You'll still be required to pay a deposit and keep up with monthly payments, but these are likely to be considerably lower than they would be with a hire purchase agreement. This is because of the optional final payment - a predetermined amount that you'll be required to pay if you want to keep hold of the vehicle at the end of the agreement. If you don't want to pay this, you're free to arrange another deal and move onto something else; perfect for those who like to keep up with the latest models.

You can find out more about the difference between PCP and HP with our easy to understand HP or PCP guide.

Having a bad credit history may have made it more difficult to buy a car on finance in the past, but bravoauto aims to change that with our impaired credit car finance.  

To benefit, you only need to meet a small range of criteria. Once you've found your dream car, our team will ensure your payments are still manageable.