Compare Car Finance in United Kingdom

Compare the total amount repayable across the full term, not just the monthly payment — PCP balloon payments and optional final payments can make headline costs misleading.

20 live car finance offers tracked across 20 UK providers, with APRs from 4.90%. Data current as of 1 November 2026 and updated daily from the Giraffy database.

Live offers

20 live offers compared from 20 providers, from 4.90% APR. Updated daily.

Ford Credit UK Ford Credit UK

4.90% APR

  • Representative APR: From 4.9% APR (new)
  • Loan Term: 24–48 months
  • Key Feature: 0% PCP on selected Fords
  • Finance Type: PCP

Mercedes Finance Mercedes-Benz Financial Services

5.50% APR

Mercedes Finance is a car finance offer from Mercedes-Benz Financial Services in the UK. Key details — Representative APR: From 5.5% APR; Loan Term: 24–48 months; Key Feature: Agility Finance PCP; Finance Type: PCP.

  • Representative APR: From 5.5% APR
  • Loan Term: 24–48 months
  • Key Feature: Agility Finance PCP
  • Finance Type: PCP

Toyota Finance Toyota Financial Services

5.90% APR

  • Representative APR: From 5.9% APR (new)
  • Loan Term: 24–48 months
  • Key Feature: 0% deals on selected models
  • Finance Type: PCP

BMW Financial Services BMW Financial Services

5.90% APR

  • Representative APR: From 5.9% APR
  • Loan Term: 24–48 months
  • Key Feature: Balloon PCP option
  • Finance Type: PCP

Audi Finance Audi Financial Services

5.90% APR

  • Representative APR: From 5.9% APR
  • Loan Term: 24–48 months
  • Key Feature: Personal contract purchase
  • Finance Type: PCP

RCI Financial Services RCI Financial Services

5.90% APR

  • Representative APR: From 5.9% APR
  • Loan Term: 24–48 months
  • Key Feature: Renault Group manufacturer finance
  • Finance Type: PCP

Honda Finance Europe Honda Finance Europe

5.90% APR

  • Representative APR: From 5.9% APR
  • Loan Term: 24–48 months
  • Key Feature: Honda Solutions PCP
  • Finance Type: PCP

Volkswagen Financial Services PCP UK Volkswagen Financial Services UK

6.90% APR

  • Representative APR: 6.9% APR representative
  • Loan Term: 24–60 months
  • Max Loan Amount: £50,000
  • Key Feature: VW manufacturer captive; optional final balloon payment; PCP/HP available
  • Finance Type: PCP

Zuto Car Finance Zuto

6.90% APR

  • Representative APR: From 6.9% APR
  • Loan Term: 12–60 months
  • Max Loan Amount: Up to £100k
  • Key Feature: Broker — compares multiple lenders
  • Finance Type: Broker (HP/PCP)

Stellantis Finance Stellantis Financial Services

6.90% APR

  • Representative APR: From 6.9% APR
  • Loan Term: 24–48 months
  • Key Feature: Multi-brand manufacturer finance
  • Finance Type: PCP

Novuna Vehicle Finance Novuna Vehicle Solutions

6.90% APR

  • Representative APR: From 6.9% APR
  • Loan Term: 12–60 months
  • Max Loan Amount: Up to £35k
  • Key Feature: Mitsubishi HC Capital brand
  • Finance Type: HP / PCP

Mann Island Finance Car Loan UK Mann Island Finance

7.90% APR

  • Representative APR: 7.9% APR representative
  • Loan Term: 12–60 months
  • Max Loan Amount: £100,000
  • Key Feature: Whole-of-market broker; access to 30+ lenders; PCP and HP
  • Finance Type: Broker (HP/PCP)

Evolution Funding Evolution Funding

7.90% APR

  • Representative APR: From 7.9% APR
  • Loan Term: 12–60 months
  • Max Loan Amount: Up to £50k
  • Key Feature: Dealer-introduced finance
  • Finance Type: Broker (HP/PCP)

Santander Consumer UK Car Finance Santander Consumer UK

8.40% APR

  • Representative APR: 8.4% APR representative
  • Loan Term: 12–60 months
  • Max Loan Amount: £75,000
  • Key Feature: Santander Group; PCP and HP; wide dealer network acceptance
  • Finance Type: HP / PCP

Close Brothers Motor Finance UK Close Brothers Motor Finance

8.90% APR

  • Representative APR: 8.9% APR representative
  • Loan Term: 12–60 months
  • Max Loan Amount: £50,000
  • Key Feature: Specialist lender; considers non-prime credit; large dealer network
  • Finance Type: HP

Black Horse Car Finance UK Black Horse

9.90% APR

  • Representative APR: 9.9% APR representative
  • Loan Term: 12–60 months
  • Max Loan Amount: £100,000
  • Key Feature: Lloyds Banking Group; largest UK motor finance lender by volume; PCP and HP
  • Finance Type: HP / PCP

Advantage Finance Advantage Finance

9.90% APR

  • Representative APR: From 9.9% APR
  • Loan Term: 12–60 months
  • Max Loan Amount: Up to £25k
  • Key Feature: Used car specialist
  • Finance Type: HP

Blue Motor Finance Blue Motor Finance

14.90% APR

  • Representative APR: From 14.9% APR
  • Loan Term: 24–60 months
  • Max Loan Amount: Up to £20k
  • Key Feature: Near-prime specialist
  • Finance Type: HP

Moneybarn Car Finance Moneybarn

19.90% APR

  • Representative APR: From 19.9% APR
  • Loan Term: 24–60 months
  • Max Loan Amount: Up to £25k
  • Key Feature: Accepts poor credit history
  • Finance Type: HP

First Response Finance First Response Finance

24.90% APR

  • Representative APR: From 24.9% APR
  • Loan Term: 24–60 months
  • Max Loan Amount: Up to £15k
  • Key Feature: Accepts all credit types
  • Finance Type: HP

What is car finance in the UK?

Car finance lets you spread the cost of a vehicle rather than paying cash upfront. The two dominant products in the UK are Personal Contract Purchase (PCP) and Hire Purchase (HP). With HP you pay off the full value in instalments and own the car at the end. With PCP you pay lower monthly amounts, then choose to hand the car back, pay a final balloon payment to keep it, or part-exchange.

Personal loans are a third route, letting you own the car outright from day one. Each suits different priorities around monthly cost, ownership and mileage.

How the UK car finance market works

Finance is arranged through dealers, manufacturers' finance arms and independent lenders. PCP payments are lower because you are only financing the car's depreciation over the term, plus a large optional final payment based on the guaranteed future value. Mileage limits apply to PCP, with charges for exceeding them or for damage beyond fair wear and tear.

Rates depend on your credit profile, the deposit and the term, and are quoted as a representative APR.

Types of car finance

PCP — low monthly payments and flexibility, with a balloon payment to own the car.

HP — higher payments but you own the car at the end, with no mileage limits.

Personal loan — own the car immediately and avoid mileage restrictions.

GAP insurance — covers the shortfall if the car is written off and you owe more than its value.

Leading UK car finance providers

Manufacturer finance arms lead point-of-sale lending: Ford Credit UK and Volkswagen Financial Services UK are major players. Black Horse (part of Lloyds) and Santander Consumer UK are large motor lenders, Close Brothers Motor Finance and Mann Island Finance work through dealers, Moneybarn specialises in non-prime borrowers, and Zuto is a broker matching customers to lenders.

What it costs

Representative APRs typically range from around 4.9% for strong-credit borrowers on prime deals up to roughly 24.9% or higher for used-car and non-prime finance. The total cost depends on the deposit, term and any balloon payment, so compare the total amount payable, not just the monthly figure, and factor in mileage limits on PCP.

Protections and regulation

Car finance is regulated by the Financial Conduct Authority (FCA) under the Consumer Credit Act, giving you a cooling-off period and the right to settle early. Under the Act's voluntary termination right, once you have paid half the total amount, you can usually hand the car back. A major FCA review into historic discretionary commission arrangements may entitle some past borrowers to redress. Complaints can go free to the Financial Ombudsman Service (FOS).

Common questions

PCP or HP? PCP offers lower payments and flexibility; HP costs more monthly but you own the car outright.

What is a balloon payment? The optional final lump sum on PCP to keep the car rather than hand it back.

Should I buy GAP insurance? Worth considering, but shop around, as dealer GAP is often overpriced.

Can I settle car finance early? Yes, you can request an early settlement figure at any time, and the Consumer Credit Act limits the interest you owe on early repayment.

Car Finance in United Kingdom — FAQ

What is the best car finance rate in United Kingdom right now?

Giraffy tracks 20 car finance products across 20 lenders in United Kingdom. Compare by APR to find the most cost-effective way to finance your vehicle.

What is the difference between PCP, HP, and a personal loan for buying a car?

PCP (Personal Contract Purchase) has lower monthly payments but a large 'balloon payment' at the end to keep the car. HP (Hire Purchase) spreads the full cost in equal instalments — you own the car at the end. A personal loan gives you the cash to buy outright, often at a lower rate. PCP suits those who upgrade regularly; HP and loans suit those who want outright ownership.

What credit score do I need for car finance?

Most mainstream lenders require a fair to good credit score. Specialist lenders offer car finance to those with poor or limited credit history, but typically at higher APRs. Check your eligibility using a soft-search tool before applying to avoid unnecessary hard searches on your credit file.

Can I get car finance with bad credit?

Yes — specialist lenders offer car finance to borrowers with a poor credit history, but at higher interest rates. A larger deposit reduces risk for the lender and may secure you a better rate. Improving your credit score before applying is the most cost-effective long-term approach.

What is a balloon payment on a car finance deal?

A balloon payment (also called a Guaranteed Minimum Future Value / GMFV on PCP) is a large lump sum due at the end of the finance term if you want to keep the car. If you don't pay it, you return the vehicle. It's set based on the car's expected residual value at the end of the deal.

Is it cheaper to get car finance through a dealer or directly with a lender?

Dealer car finance is convenient but not always the cheapest — dealers often earn commission on the finance package. Comparing independent lenders via Giraffy before visiting a showroom gives you a benchmark rate. Arriving with pre-approved car finance puts you in a stronger negotiating position.

What happens if I want to settle a car finance deal early?

Early settlement typically involves paying the outstanding capital plus a settlement fee (usually 1–2 months' interest). On PCP and HP, you may also have the right to voluntarily terminate the agreement once you've paid 50% of the total amount payable — returning the car with no further obligation.