What is Car Finance? | Wilsons Group


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What is Car Finance?

Car finance helps to spread the cost of buying a new or used car. Instead of paying the full amount up front, you pay monthly instalments with interest. Most car dealerships will offer a range of finance products to suit individual preferences and circumstances.

At Wilsons we have a variety of finance packages available to both individuals and businesses which include Personal Contract Purchase, Hire Purchase, Personal Contract Hire and Business Contract Hire.

Finance is subject to status and is only available to UK residents aged 18 and over.

How Does Car Finance Work?

Each of these finance packages works a little differently, but in general terms the finance company will buy the car on your behalf and then you will repay the amount borrowed on a monthly basis with interest.

Salesman handing over keys after agreeing a car finance agreement

Typically, you would pay a deposit and make monthly payments from 1 - 5 years to tailor the finance to meet your budget. The finance agreement is secured against the vehicle for the duration of the agreement which means that the car will be owned by the finance company and not the car dealership until the final payment has been made. However, if you opt for car leasing options such as Personal Contract Hire or Business Contract Hire there will not be an option to purchase the car at the end of the agreement.

Our Products Explained

Hire PurchasePersonal Contract PurchasePersonal Contract HireBusiness Contract Hire
Deposit RequiredNo minimum deposit required No minimum deposit required Advance rental of 1 - 21 months Advance rental of 1 - 21 months
Maximum Age of the Car at the Start of the Agreement10 3 New Only New Only
Length of the Agreement1 - 5 years 2 - 4 years 2 - 5 years 2 -5 years
Ownership Options at the End of the AgreementYou own the car but you can still part exchange* 1. Part exchange*
2. Pay the outstanding balloon payment to own the car
3. Return the car**
Return the car Return the car
Fixed Payments

Mileage Restrictions

Optional Maintenance Cover

Final Balloon Payment at the End of the Agreement

Fully Comprehensive Insurance Required

*Part exchange is subject to settlement of your existing finance agreement, new finance agreements are subject to status.

**You have the option at the end of the agreement to return the vehicle and not pay the outstanding balloon payment. If the vehicle is in good condition and has not exceeded the allowed mileage you will have nothing further to pay. If the vehicle has exceeded the allowed mileage a charge for excess mileage will apply.