Car finance on Autotrader
We know car finance can be overwhelming, so we're here to help.
What is car finance?
Most of us won't have the money in our back pocket to pay for a car all at once. With car finance, you can borrow money from a bank, car finance lender or online lender and pay the money back over time, usually in monthly installments.
How does it work?
Once you've applied for finance, the lender will check your credit history to see whether you can afford to pay them back. At the end of your contract, you'll either finish paying and own the car, or you'll have the option to return it.
Know what you're looking for? Find a car to finance online
Types of finance available
Depending on the seller, you may have different types of finance options available. It's important to know which option is best for you.
PCP
Personal Contract Purchase
Personal contract purchase (PCP) is a flexible way to finance a vehicle. You pay an initial deposit, followed by monthly payments including interest. At the end of the agreement you can either buy the vehicle by paying an optional final payment, or return it.
HP/CS
Hire Purchase/Contract Sale
Hire purchase (HP) / Conditional sale (CS) is a flexible way to finance a vehicle. You pay a deposit upfront, then make monthly payments to pay off the remaining amount, plus interest and any additional fees. With HP/CS, you will own the vehicle at the end of the agreement.
Lenders and brokers
What is a finance lender?
A finance lender is an individual, group or institution (for example a bank or finance provider) that loans money to individuals or businesses. Car retailers work with lenders to offer finance agreements to their customers.
What is a credit broker?
Credit brokers work with lenders to offer multiple finance options to customers. This includes car retailers, who introduce buyers to the lenders they work with. They usually receive a commission for completed finance agreements.
Commissions
What are commissions and how do they work?
In car finance, dealerships act as credit brokers. This means that they arrange loans for customers from the lenders they work with. Dealerships will usually earn a commission fee from these lenders if a customer decides to sign a finance agreement with them.
Does Autotrader earn commission?
Autotrader act as a credit broker, so we do earn commission. This will never affect your payment amount or finance rates. We earn commission in a few different ways, including fees from sellers advertising finance and commission from finance applications with other brokers (CarMoney or Zuto). Learn more here.
Why are finance commissions in the news?
Commission payments on automotive finance have been under investigation for the past year. Recent court rulings now require lenders and brokers to make commission disclosures clearer. They are updating processes, and you can ask for a breakdown of commission fees. Separately, the FCA is investigating past discretionary commission payments made to brokers.
Learn more about recent court rulings
Learn more about car finance claims
What is our role as Autotrader?
We act as a credit broker which means we don't offer finance ourselves, but we make it easy for you to apply directly with the retailer.
Shop for your next car on Autotrader and use the calculator on our adverts to quickly work out your monthly payments.