Car finance made simple.

With a car loan you’ll effectively borrow money from a lender to cover the initial costs of your car. You’ll then pay the lender back monthly for the money you borrowed, plus interest. You can use it for brand-new cars, old run-arounds and everything in between.

There are three types of car finance:

1. Hire purchase (HP)
2. Personal contract purchase (PCP)
3. Personal loan

You can find out more on our car finance options page.

Your eligibility depends on your credit rating. The better your credit rating, the more chance you’ll have of being accepted for a loan or securing a better deal.

It’s important to consider what you can afford and budget accordingly to factor in any monthly repayments and the costs of running your new vehicle.

If you have a lower credit rating, you may still be able to secure a deal, but it might include higher monthly repayments or interest rates. You can find out more in our bad credit car finance guide.

Car finance can be a great option for helping towards the cost of a new or used car. After all, cars can be expensive. However, whether a car loan is right for you will depend on your circumstances.

• Makes it easier to afford a new car by spreading the costs out over a set period.
• If you have a good credit rating, you could secure a low interest rate.
• Depending on what type of loan you choose, you could own your car right away.
• Some deals include maintenance and repair costs as part of the package.

You can start driving a newer, safer, more efficient model than you might otherwise have been able to afford without finance.

• Depending on the type of loan you choose, you might only ‘lease’ your car from a lender.
• The final cost of the car – including interest – will be more than paying upfront.
• If you fail to meet your monthly payments, you could lose the car, leaving you without a vehicle but still owing money.
• Some deals require large deposits.
• Some agreements have limits, such as an annual mileage cap or being unable to make modifications.

Weigh up the pros and cons, and check the details of your lender’s offer, before agreeing to anything binding.

The positives and negatives of car finance will depend on what you need and your own circumstances, as well the type of loan you choose.

Find out more on how to apply below, or get started now. You can also talk to our team of experts on: 01625 619 944.

Exactly what documentation is required to finance a car can vary between lenders. But as a minimum, you can expect lenders to ask for:

• Proof that your personal details are accurate, possibly in the form of a utility or phone bill.
• A photograph or scan of your driving licence.
• Proof of your income, such as a payslip, so they can ensure you’ll be able to keep up with your monthly payments.

If a lender requires anything extra we’ll explain this to you.

Once we’ve found you the right lender and deal from our panel, we’ll be in touch to explain exactly what documentation you need to provide.

When applying for car finance with Zuto, you need to be at least 18 years old and have lived in the UK for three years or more.

We work with a large panel of lenders and any decision is based on your personal circumstances.

We process applications instantly and aim to provide you with car finance quotes from multiple lenders on our panel in just a couple of minutes but on some occasions this can take longer if we need further information from yourself. If your circumstances are complicated, you can call us and get some help from one of our team.

Who owns the car will depend on the agreement. For hire purchase (HP) and personal contract purchase (PCP), the lender owns the car until you make the final payment (or balloon payment for PCP). With a personal loan, you own the car from day one.

There is no credit rating limit for car finance, but the better your score, the more likely you’ll get approved at a lower rate.

If you’re looking for initial quotes, no. When you apply with Zuto, we run an initial assessment of your credit file and check this against our lenders’ criteria to see if you’re going to be eligible. This is what’s known as a ‘soft search’, and it won’t appear on your records or impact your credit score in any way.

It’s then up to you which deal you choose to apply for – if at all. Once the application’s made and you’ve consented, the lender will need to perform a full credit search, and this will be noted on your credit history. But this never happens without your consent.

Yes, just because your credit history isn’t perfect doesn’t mean lenders will turn you away. At Zuto we've been helping customers get car finance for over 15 years and work with a large panel of lenders, some of whom specialise in bad credit car finance. 

A car finance broker helps customers find car finance deals – it doesn’t lend any money itself. At Zuto, we work with a large panel of lenders and we share their finance offers with you.

We can also offer you help and support along the way – just give us a call on 01625 619 944.

Zuto is a broker, not a lender, so any charges we incur are covered by the fees we receive from the lenders for arranging your car finance with them. This means we can offer our services to you totally free of charge.

Our panel of lenders will finance cars, motorcycles, vans and touring caravans.

We can also provide finance for more specialist vehicles, so whatever you’re thinking of buying, give us a call on 01625 619 944.

If you don’t have a car in mind, but you’ve already been pre-approved for finance, you can use the stock search tool in My Zuto, your online account area. This allows you to search for cars that you think you might like to buy from any reputable dealer. When you find something, you can add it to your shortlist and we’ll carry out the vehicle checks and provide a finance quote specifically for that car. Again, you can also give one of our team a call on 01625 619 944.