What Is Car Finance?

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 finance package 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. Typically, you would pay a deposit and make monthly payments from one to five years, tailoring 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 Purchase

Personal Contract Purchase

Personal Contract Hire

Business Contract Hire


Deposit Required

No 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 Agreement



New Only

New Only

Length of the Agreement

1 - 5 years

2 - 4 years

2 - 5 years

2 -5 years

Ownership Options at the End of the Agreement

You 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.

Transport For London

Cars need to meet minimum emission standards when travelling in the Ultra Low Emission Zone (ULEZ) or the daily charge must be paid.

Minimum emission standards

Petrol: Euro 4
Diesel: Euro 6

The ULEZ will be enforced based on the declared emissions of the vehicle rather than the age. However:

Information from Transport For London

Check this car on the TFL website before purchasing: https://tfl.gov.uk/modes/driving/check-your-vehicle/

All our vehicles are subject to an Admin Fee. Our Admin Fee covers any additional administration needed during your transaction, including a thorough provenance check (HPI Check). The admin fee also includes the cost to fully valet, register and, if necessary, MOT your vehicle (if less than 6 months left of current MOT).

Our administration fee is a variable fee which covers the additional administration needed when transacting with different categories of customers as specified. Retail Customers £199.00 - (Private buyers - NOT an owner, partner or director of a new/used vehicle sales company). Retail Customers using a finance broker outside our official panel of lenders paying funds direct to Wilsons Epsom - £399.00. All fees are inclusive of VAT.