Car Finance with Zuto

Find finance deals for popular makes & models, from dealers and private sellers near you. Search for your dream car now

Get a quote

Your guide to Car Finance

What is Personal Contract Purchase or PCP?

You pay an initial deposit, followed by monthly instalments, but a large portion of the loan is deferred until the end of the agreement. You can pay that final sum to own the car, hand it back or start another agreement.

What is APR or Annual Percentage Rate?

The amount of interest you’ll pay yearly on the money you’ve borrowed, including the various fees that apply, so that you can accurately determine and compare the overall annual cost of your agreement.

What is Mileage allowance/Excess mileage?

A pre-agreed mileage limit imposed for the duration of the agreement, designed to protect the car’s value. The size of your deposit, monthly payments and (if applicable) final payment will then be calculated based on this.

What is Personal Contract Hire or PCH?

Technically a method of leasing a car rather than buying it. You pay a deposit and low monthly instalments, but you never own the car.

What is Negative equity?

When you owe more on the car than the car is worth according to its market value, and you’ll be liable for the difference. You can settle the amount yourself or you may be able to carry the amount across to a new deal for another car.

What is Hire Purchase or HP?

You pay a deposit up front, and then pay off the rest of the balance – plus the interest - in equal monthly instalments. The car is yours at the end of the agreement.

What is Balloon payment?

The large final payment at the end of a PCP agreement that you pay to own the car outright.

What is Depreciation?

The value that your car loses over time due to things such as age, mileage and wear and tear.