How does car finance work

There are many car finance companies and types of car financing options on the market, but the contract we provide is a Hire Purchase (HP) agreement. Put simply, you "hire" the car, paying in affordable monthly installments at a fixed rate of interest, and once the vehicle is paid off in full, it's yours. When you apply for car finance online with us, our application process is incredibly straightforward and, in most cases, we can provide an almost instant decision for your car finance application. Part of the decision relies on a soft credit search, but we also use your current circumstances as a basis to make a decision too - so even if you have a low credit score or bad credit history, our approach means that we can often still provide you with car finance.

Representative Example
Hire Purchase Agreement repayable over 48 months
Rate of Interest:14.0% p.a. flat rate(fixed)
Vehicle Purchase Price:£7,500
Amount of Credit:£7,500

Acceptance Fee:£325.00
Interest Payable:£4,200.44
Option to Purchase Fee:£200.00
Total Charge For Credit:£4,725.44

47 Monthly Repayments Of:£250.53
Followed by 1 Final Repayment Of:£450.53
(Includes Option to Purchase Fee)
Total Amount Payable:£12,225.44
Representative APR:29.35%

Hire Purchase. Terms and conditions apply. You will not own the vehicle until all payments are made. Finance subject to status. Applicants must be aged 22 or over. Finance provided by Advantage Finance Limited.

The advantages of car finance

Whether you're a builder or joiner looking to finance a business van, or a family that wants to finance a van for personal use, there is no better provider to turn to than Advantage Finance. And there are so many reasons why buying a van on finance is actually better than buying one outright. Some advantages include:

  • Car finance makes owning a car easier to afford, as the cost is spread out over a set period, meaning you don't have to find a large sum of money straight away
  • If you were relying on your savings to purchase your car, you can hold onto them and even keep topping them up - therefore helping you retain better financial stability
  • Due to not having to save or find large amounts of money, getting on the road can be a much quicker process
  • You'll have a wider range of cars to choose from that you might otherwise have not been able to afford
  • Making these monthly payments can massively boost your credit score
  • Advantage Finance can provide Nil Deposit car finance options

The disadvantages of car finance

  • Due to interest, the overall cost of the car will be more than paying up-front
  • You must be able to make the monthly payments - failure to do so could cause you to lose the car

Car finance online

The pros and cons of applying for car finance online are all dependent on what you are looking for, your personal circumstances, and, of course, your financial circumstances. Before you go ahead with any application, it is important to weigh up these pros and cons to make sure it's right for you. Our team is also on hand to offer you support, so if you have any questions please do not hesitate to get in touch today.

What type of car can I get finance for?

If you are looking to finance the purchase of a car, then you are in safe hands with Advantage Finance. We offer a comprehensive specialist finance service through hundreds of dealers throughout the UK. This does not, however, limit your options, because we are happy to assist with your purchase through any dealer of your choice.*

* Subject to Terms and Conditions. Finance brokers and motor dealers must hold appropriate FCA consumer credit permission.
Credit facilities are provided subject to status. Written quotations available on request.

Why Advantage Finance?

Our ultimate focus is on your happiness and satisfaction, which remain at the heart of everything we do when it comes to helping you get car finance. We are a team that is committed to helping everyone get on the road, and we have plenty of understanding and empathy when it comes to people's circumstances. We're a strong believer that everyone deserves the opportunity to own a car, so no matter what type of financial history you have, you can trust that we'll always go the extra mile to get you behind the wheel. We are a trusted and highly reputable lender, which means that treating our customers fairly is at the heart of everything we do.

© Advantage Finance Ltd 2001 - 2022. All Rights Reserved

Representative Example: Hire Purchase Agreement repayable over 48 months. Rate of Interest: 14.0% p.a. flat rate(fixed).
Vehicle Purchase Price: £7,500. Deposit: £0.00. Amount of Credit: £7,500. Acceptance Fee: £325.00. Interest Payable: £4,200.44.
Option to Purchase Fee: £200.00. Total Charge For Credit: £4,725.44. 47 Monthly Repayments Of: £250.53 Followed By 1 Final Repayment Of: £450.53
(Final payment includes Option to Purchase Fee). Total Amount Payable: £12,225.44. Representative APR:29.35%.
Hire Purchase. Terms and conditions apply. You will not own the vehicle until all payments are made.
Finance subject to status. Applicants must be aged 22 or over. Finance provided by Advantage Finance Limited.

Advantage Finance Ltd is registered in England and Wales with company number 03773673.Registered office: 2 Stratford Court, Cranmore Boulevard, Solihull, B90 4QT.
Advantage Finance Ltd is authorised and regulated by the Financial Conduct Authority (Firm reference No. 307864).
Advantage Finance Ltd is a member of the Finance and Leasing Association
Finance is available to UK residents only and is subject to creditworthiness and affordability assessment. Written quotations available on request.
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