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Mike Vousden
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Finance
Used car finance
Buying a vehicle on finance lets you spread the cost over a few years. You can tailor your agreement depending on how much deposit you want to put down, and how much you want to pay per month.
What vehicle finance options are available?
We offer Hire Purchase (HP) or Personal Contract Purchase (PCP) when buying your nearly new vehicle from Motorpoint. Both used vehicle finance options can be tailored to suit your needs and your circumstances, and you can start your agreement safe in the knowledge that your rates and monthly payments won’t change for the duration of your agreement. Types of car finance explained.
This means you pay for a portion of the vehicle’s value every month throughout the finance period. You won’t be financing the vehicle's total cost, so the monthly repayments are usually lower for PCP compared to HP.
Once the finance period ends, you can pay a balloon payment to own the car outright. If you don’t want to pay the balloon, you can hand the car back to the finance provider. At this point, you can walk away with nothing to pay, or roll any positive equity into a fresh PCP agreement on another vehicle.
PCP deals include mileage limits and condition restrictions so, if you’re handing the vehicle back, you’ll be charged for any excess mileage or damage beyond normal wear and tear.
This sees you pay back the vehicle’s whole value over the course of the finance agreement. Once the term is up, you’ll own the vehicle outright.
Your monthly payments for HP will be more expensive than the same car financed with PCP, but there’s no balloon payment at the end of the agreement.
Plus, because you’re not handing the vehicle back, there are no limits on the vehicle’s mileage or condition.
PCP vs HP - what's the difference?
See which finance option is best for you based on your budget and driving habits
| Considerations | PCP | HP |
| Deposit | Optional | Optional |
| Monthly payments | Lower | Higher |
| Car ownership at end of term | Optional | Automatic |
| Balloon payment | Yes | No |
| Mileage caps | Yes | No |
| Wear and tear fines | Yes | No |
| Best for | Frequent changers | Long-term owners |
Am I eligible for car finance?
You need to be at least 18 years old and live in the UK to apply for car finance at Motorpoint. Your credit history will also be taken into account to determine whether you get accepted or not.
What information do I need when applying for car finance?
When completing the finance application, you will be asked for the following information:
- Your name, date of birth and nationality
- Employment details
- Three years' worth of address history
- Bank account details
You'll also need a copy of your driving licence.
Car finance for bad credit
If you have a bad credit score, you might find that the only lenders willing to lend to you are the ones specialising in bad-credit applications.
These lenders may be able to offer a finance rate that’s actually affordable, although you might have to provide a guarantor for the credit, or put in a larger deposit than other providers are asking for.
If you have been refused car finance, discover how we can help you apply for finance with bad credit
How does vehicle finance work?
Choose your vehicle
Shop a range of cars. You’ll often find each includes a representative finance quote – pay attention to the monthly repayments, the deposit and, for PCP finance, the final balloon payment. Make sure the deal is affordable before applying.
Apply for finance
Once you’ve chosen your vehicle, put in an application for either PCP or HP finance. Your Motorpoint representative will be happy to guide you through this process.
Put down an initial payment
You can put down an initial payment upfront – often called a deposit. This is optional but does reduce the overall amount you need to finance, lowering the amount of interest you’ll pay.
Make monthly repayments
The vehicle’s cost is broken into affordable monthly payments. Finance agreements typically run between two and five years.
End of the agreement
Once the finance agreement ends, PCP buyers can pay the balloon payment to own the car. Or, hand it back with the option to roll any positive equity into a new PCP agreement. HP buyers own the vehicle outright at the end of the agreement.
Can you pay off car finance early?
You can settle your outstanding PCP or HP finance agreements at any time. You might be charged extra for doing so.
You will need to contact your car finance provider to request an early settlement figure. This amount will include the remainder of the loan, the interest owed up to the settlement date, plus an early repayment fee (either a percentage of the settlement amount, or 1-2 months of interest).
Why choose Motorpoint car finance?
- Competitive rates – With APR from 10.9% on all cars
- Easy application – Apply for finance online, over the phone or at any of our stores.
- Flexible terms – Decide whether you want to pay a deposit and tailor your monthly payments to your budget.
- Fixed payments – Finance terms available for up to five years, with fixed interest rates and payments.
Our finance partners
We work with a selection of trusted partners to help find the perfect car finance plan for you.
Black Horse
Black Horse is part of the Lloyds Banking Group and is a leading car-finance provider. The company has won several recent awards for its customer experience.
MotoNovo*
MotoNovo are part of the Aldermore Group, and have specialised in car finance for over 40 years.
Startline*
Startline is a specialist car finance lender, who offer flexible finance options to customers.
Finset*
Finset is a broker that offers car finance from a panel of lenders. They can support with finance options for people with bad credit.
*available through our broker. Speak to a member of our team for more info
Your car finance questions answered
Car finance guides
Consumer rights
Motorpoint is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit. This means we are legally permitted to offer credit-related services and follow strict rules to ensure consumers have key protections such as fair treatment, clear information and dispute resolution. We will be paid a commission for introducing you to our selected group of lenders. The commission amount will be disclosed once your Finance Agreement has been accepted with one of our lenders.
We’re also a SAF approved retailer, which means customers can finance their vehicle purchases safe in the knowledge they are receiving expert advice from a trustworthy motor dealership. All staff are committed to raising standards and improving knowledge of finance being sold, and have passed the Specialist Automotive Finance (SAF) Expert Test.
