What to ask
 | How much deposit do I need? |
| Most car finance schemes ask for a minimum deposit of 10%. However, you can save money in the long term by paying more. |
| | What is the interest rate? |
| It is important that you get an accurate comparison of interest rates charged. To do this, ask for the APR (annual percentage rate) and compare it with other finance. Do not get confused between APR and ‘flat rate’. By law any lender must give you a written document with the APR clearly stated. |
| | Can I reduce my monthly payments? |
| You can reduce your monthly payments by putting down a larger deposit or by deferring some of the finance until the end of the agreement. Talk to your lender about these options. |
| | Can I cancel the agreement? |
| Your rights to cancel the agreement should be clearly explained to you before you sign. They should also be given to you in writing. Do not sign if you do not understand these rights. |
| | Can I settle the agreement early? |
| Yes, but you will almost certainly have to pay a charge. Your lender should give you details about this. For information on paying early, click here. |
| | Can I sell the car? |
| Most finance agreements require you to pay off the debt in full before you sell the car. Under certain circumstances you may be able to return to car to the finance company. If you are having difficulty making your payments, you should talk to the lender before you take any action. |
| | Can I add service and maintenance? |
| Yes, most car dealers will be able to add a service and maintenance package. This may or may not be part of the initial car finance. Talk to your dealer about this option. |
