Car Finance Explained
Finding the right way to pay for your next car can feel complicated, but it doesn’t have to be.
Whether you’re looking for used car finance or a brand-new model, our friendly team is here to make the process simple and stress-free.
What is Car Finance?
Car finance allows you to spread the cost of a car into manageable monthly payments instead of paying the full price upfront. This makes it easier to finance a car that suits your needs and budget.
With a range of options available, you can choose a plan that fits your lifestyle, whether that’s short-term flexibility or long-term ownership. If you’re searching for cars on finance, or want to compare the car finance deals Vertu can assist you with, you’re in the right place.
Our Finance Panel
We work with a range of trusted finance providers, giving customers access to a choice of finance solutions rather than relying on a single lender. The lenders available to you may vary depending on a number of factors, including the vehicle selected, your individual circumstances and the finance products available at the time.
We will help you understand the finance options available from our panel of lenders. We can then introduce you to a lender from our panel and, if needed, further lenders.
Our Role as a Credit Broker
When arranging vehicle finance, we act as a credit broker, not a lender. This means we work with a panel of carefully selected finance providers who may be able to offer finance for your vehicle purchase. We will introduce you to one or more lenders from our panel and help you understand the finance options available.
Our team can explain the key features of each finance product, including the costs, benefits, risks and eligibility criteria, helping you make an informed decision based on your individual needs and circumstances.
Commission
If you choose to enter into a finance agreement through one of our finance provider partners, we will receive a commission from the lender for introducing the finance. The amount or method of calculating this commission can vary between lenders and finance products. We are committed to being transparent about how we are paid. Before you enter into any finance agreement, we will tell you how much we will receive and provide clear information about the nature of that commission.
Our offer of a finance product will always be based on it being suitable for your needs and circumstances, helping you to make an informed choice. We do not act as an independent adviser across the whole of the car finance market.
Making an Informed Choice
Choosing vehicle finance is an important financial decision. We encourage all customers to:
Take time to consider the available options.
Review the total amount payable, not just the monthly payment.
Consider whether the agreement is affordable throughout its term.
Ask questions if anything is unclear before proceeding.
Our aim is to provide clear information and support, enabling you to select a finance solution that is right for you.
Types of Car Finance
There are several ways to finance cars, and each works a little differently. Here’s a quick overview of the most popular options:
Personal Contract Purchase (PCP)
A popular option for drivers who like flexibility. With PCP, you pay an
initial deposit, followed by monthly payments. At the end of the agreement, you can:
- Keep the car by paying the optional final payment
- Hand the car back
- Part-exchange it for a new model
This can be a great option if you like to change cars every few years or
want lower monthly payments.
Learn more about PCP car finance
Hire Purchase (HP)
HP is one of the most straightforward ways to finance a car. You pay a deposit, then fixed monthly payments until the full amount is covered. Once you pay an Option to Purchase fee – a small payment which enables the customer to take title - you will then own the vehicle at the end of the agreement.
This is a popular choice for drivers who want ownership without paying a lump sum at the end of the agreement
Personal Contract Hire (PCH)
PCH is a long-term car leasing option where you pay a fixed monthly fee to drive a car for an agreed period, without the option to buy it at the end. You’ll typically pay an initial rental followed by monthly rentals, and simply return the car when the agreement finishes.
This is a great choice if you want to drive a new car every few years with lower monthly costs and no concerns about depreciation.
Why Choose Car Finance?
Choosing a finance car deal can offer:
- Lower upfront costs
- Predictable monthly payments
- Access to newer or higher-spec models
- Flexible options at the end of your agreement
Whether you’re after cars on finance deals for a family car, commuter vehicle, or something sporty, there are flexible options to suit every budget.
New & Used Car Finance
We offer car finance deals across our full range of vehicles, including:
New cars on finance – Drive the latest models with flexible payments
Used car finance – Affordable ways to get behind the wheel of a quality used vehicle
Our colleagues can help you find the perfect vehicle and finance package, whether you’re looking for an automatic, a family car, or a first car.
We work with trusted lenders to offer rates and flexible terms helping you secure the right car finance deals without the hassle.
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