Pay monthly cars
Pay for your car in monthly instalments with finance options to suit your budget.
Calculate what your monthly payments might be
Today, car finance is the most popular way to buy a car in the UK. Finance packages remove the need to purchase the car outright, enabling thousands of drivers to pick up a new set of wheels without having to fork out a huge lump sum upfront. At Oodle we understand that buying a car is a big deal: getting your budget right, and then finding the best possible deal for you, sits at the heart of what we do.
Not everyone who needs a car will necessarily have the savings or ready cash to spend large amounts on a one-off purchase. Spreading the cost of your car across the months of your agreement length means that you can avoid paying the hefty sum upfront – and still own a car at the end. There are plenty advantages to buying a car on finance:
With fixed monthly payments you know exactly what you’re paying.
Greater security and peace of mind: if maintenance is included in your agreement, you won’t need to worry about the MOT, tyres or servicing costs – as you would if you bought a car outright.
No need to dip into savings.
How does it work?
There are many different types of finance out there, including car loans, hire purchase, personal contract purchase and personal contract hire. They all work slightly differently, so it's worth doing some research to make sure you choose the best product for you.
Paying monthly with a car loan
A car loan is a type of finance that helps car buyers cover the cost of their purchase. The buyer borrows a lump sum of cash upfront and then makes monthly payments over a set amount of time (which can vary depending on the agreement type). Some of the benefits of car loans include:
Providing buyers with the opportunity to purchase cars without having to make the full payment upfront.
Flexibility: they allow buyers to spread their purchase over a period of time in a way that fits within their budget.
They are usually paid off gradually, through smaller monthly payments, helping to keep ongoing costs manageable.
You can get a car loan at lower interest rates than other types of personal or consumer credit, enabling buyers to save money in the long run.
As with any kind of finance, it's important to do your research to understand which of the options will work best for you, before you make an agreement with your lender.
Paying monthly with hire purchase
Hire purchase is one of the most popular types of finance arrangements in the UK, thanks to its flexible, straightforward approach. With a hire purchase finance agreement, you borrow an amount equal to the total value of the car, minus an initial deposit. You then make regular, fixed monthly payments over a pre-agreed term and in turn the finance provider lets you use the vehicle.
Once you’ve paid everything due, including a final ‘option to purchase‘ fee, the vehicle then becomes yours. The benefits of hire purchase agreements include:
Legally owning the car at the end of the agreement (once the option to purchase fee is paid).
Usually no excess mileage charges (always check the terms of your agreement).
Flexible deposit options.
Paying monthly with personal contract purchase
With personal contract purchase (PCP) agreements, the monthly repayments tend to cover only the estimated depreciation of the car rather than its total value, meaning that the monthly repayments are usually smaller. However, if you choose to buy the car at the end of the arrangement, you will need to pay an additional lump sum: the final cost will be greater than with HP. As with hire purchase, PCP deals allow you full use of the car during the agreement – but it still belongs to the lender. At the end of the PCP period you will have the following options:
Pay a usually sizeable lump sum – known as a balloon payment – to own the car.
Hand the vehicle back (there may be charges for excess mileage and wear and tear).
Use any value remaining in the current vehicle to put towards your next one – this is known as part exchange.
Paying monthly with personal contract hire
Personal contract hire (PCH) is a popular way to ‘lease’ a car. With personal contract hire agreements, you normally:
Pay an initial upfront rental fee – often between 1-12 months of the monthly payments due.
Agree to lease the car for a set timeframe.
Have use of the vehicle, but don’t own the vehicle – and there’s no option to buy it at the end of the agreement.
Return the car at the end of the agreement – there may be further charges for excess mileage and/or excessive wear and tear.
As with any large financial commitment, it’s important to do your research and find the right kind of finance for your circumstances.
We’re over the moon to have helped over 150,000 happy customers find the best car for their budget – and we’d love to help you find yours, too. If you decide that hire purchase is the best finance option for your needs, we’re ready to go.
Once we’ve pre-approved your finance application you’ll be able to browse thousands of quality cars online on our Marketplace – or visit an Oodle approved dealer near you.
Our friendly Oodle experts are on hand every step of the way should you need any help.
Explore thousands of cars – With over 20,000 vehicles on the Oodle Marketplace at any one time, you’re bound to find the perfect car for you and at a price you can afford.
Seven day return guarantee – We're sure you'll love your car, but if you decide it's not quite right then you can take advantage of our free seven-day return.