Zuto is a credit broker, not a lender. Our rates start from 9.4% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £7,500 over 60 months with a representative APR of 19.9% the amount payable would be £192 a month, with a total cost of credit of £3,997 and a total amount payable of £11,497.
Financing is a way for you to buy a car without needing to pay the whole amount upfront. With over 15 years’ experience, financing a car is made simple with Zuto.
We work with a number of lenders to provide deals that are right for you, and our team is always on hand to guide you through the process, from start to finish – they’ll even help you find a car to suit your budget and needs.
There are three main types of car finance – hire purchase (HP), personal contract purchase (PCP) and a personal loan – we also help customers who are self-employed, have no deposit, or need car finance with bad credit.
It’s easy to get started straight away, but if you want to find out more, have a look at our options below or get in touch with our team.
The most popular type of car finance, hire purchase finance involves monthly payments and you own the car outright at the end of the agreement.
Monthly payments based on the depreciation, with the option to pay a balloon fee and buy outright when the term ends.
Get a personalised quote on used cars – we can even help find the right vehicle for you. Used car finance can be a convenient option for drivers looking for a second-hand car.
You don’t always need a deposit to get a car loan. Some of our lenders can help get you on the road, with affordable monthly payments spread over an agreed term.
Thinking of making the move to electric? We work with lenders who offer finance for new and used electric cars, making it more affordable to drive an EV.
Some of our lenders may be able to help you finance a car, even if you have negative equity. Find out your options, and how you can transfer your negative equity to a new agreement.
There are many reasons why people choose to use finance for their vehicle. Some of those reasons are:
The three main types of car finance are:
The most popular of Zuto’s car financing options, hire purchase is easy to understand.
So, how does financing a car work with hire purchase? The repayments will usually last between 12 and 60 months, and at the end of the agreement you will have paid for the whole cost of the vehicle – plus any interest and fees. This means you will own the vehicle at the end.
Hire purchase is good if:
With PCP, you pay off the car’s depreciation value, instead of making payments towards the full price of the car. For example, if the car you buy costs £15,000, and is expected to be worth £10,000 when your term ends, your payments will be based on the depreciation of £5,000.
You may need to provide a deposit but you could be borrowing less than you would using hire purchase, because you only pay the value the finance company predicts the car will lose over the term.
You then have the choice to either return the vehicle at the end of the agreement or pay a lump sum (known as a balloon payment) to buy the vehicle. You may also be able trade the car in for a different model at the end of the term.
PCP is good if:
The only car finance type that isn’t secured against the vehicle itself, a personal loan is an amount of money borrowed from a provider used to pay for a car. You will then make regular loan repayments to the finance company plus interest over an agreed term. Bear in mind that even if you sell the vehicle, you will still be responsible for making the loan repayments.
You will typically need a good credit score to be approved for a personal loan, and you don't get the same level of protection as you do with other car finance plans (as the loan is not secured against the vehicle).
Read more on consumer protection.
A personal loan is good if:
Car loan and credit products can help make vehicle payments affordable, allowing you to get on the road. But what other benefits can you take advantage of?
The practicality of car financing options lies in the fact that you can get the car you want now without having to pay for it in one lump sum – allowing you to balance your finances more evenly. This means your bank balance won’t take a large hit straight away and you’ll be able to manage your monthly outgoings more efficiently.
An online application process means that it’s quick and easy for people to apply for car finance and find out if they’re approved, meaning prospective shoppers can apply for their loan in advance of their trip to a dealership. This gives drivers an idea of how much money they have to spend on a new car, so they can budget accordingly.
It’s easy to get started with Zuto. You can:
