Financing your car

Autoebid can help you find the right finance deal, whatever your circumstances. Affordable monthly payments often make a new car more achievable, and in some cases better value than used.

Our sister company MotorPocket have access to a number of lenders and finance experts on hand to assist every step of your journey.

Manufacturer promotions are also available from many of our dealers to compliement your purchase. Deposit contribution and low headline APR rates often make new cars more affordable.

PCP

The most common finance type for new cars PCP offers lower monthly payments by deferring part of the loan to the end of the term. Deposit contribution may be available. The deferred balance is calculated as a percentage of the expected value of the car, typically 80%-90% At the end of the term the car can be traded in and another vehicle purchased. PCP requires an annual mileage limit to be agreed. The higher the estimated annual mileage, the lower the expected value of the car at the end of the term, so the higher the monthly payments. PCP gives you the option to return the car to the finance company at the end of the agreement without repaying the deferred balance. However if you exceed your mileage limit or do not return the car in good condition with servicing and maintenance up to date, you may be charged.

Lease Purchase

A very similar product to PCP Part of the loan is deferred to the end of the agreement. The deferred balance is calculated as a percentage of the expected value of the car. At the end of the term the car can be traded in and another vehicle purchased, alternatively the deferred balance can be paid or refinanced and the car kept for longer. There is usually no mileage limitation with Lease Purchase, however you would be required to estimate usage to calculate an accurate future value. There is no option to return the car to the finance company at the end of the term.

Hire Purchase

The loan is repaid in full over the term of the finance. This means the monthly repayments are higher than PCP or Lease Purchase, but at the end you own the car outright. If you plan to keep the car long term or want to have significant equity in your car at the end of the agreement, then Hire Purchase may be more suitable. APR is often lower than with Lease Purchase and overall interest costs may be lower over the same term as you repay the finance quicker. Manufacturers typically do not provide deposit contribution with Hire Purchase deals.

PCP, Lease Purchase, Hire Purchase are secured on the vehicle. This means if you don?t make repayments, the lender could repossess the vehicle. When arranging secured finance the settlements will be paid directly to the dealership. Borrowing is usually restricted to a certain percentage of LTV typically 100-120% of the car value. Higher loan amounts are often available that with Personal Loans.

Personal Loan

The loan is directly with you as an individual. The loan is not secured on the vehicle, which means there are no restrictions on commercial use, modifying the car or selling the car. Additionally there are no LTV restrictions, if you want extra funds to pay for insurance, add-ons or modifications. The finance company will pay the loan amount directly to your personal account, you then arrange to pay the required amount to the dealer. However often the best rates are available for restricted loan amounts and terms.