Ask An Expert

This will depend on the finance company and whether you intend buying a new or used car. Many incentivised finance agreements do not require any deposit, whereas others may ask for up to 30% if the customer is to qualify for a low interest rate. You can save money in the long term by putting down a higher deposit at the start of the agreement, which will help reduce your monthly repayments.

This will depend on the value of the car you are interested in buying, the type of finance you choose and the finance company which offers it. It’s therefore important to get an accurate comparison of interest rates charged on all the products you are considering. To do this, ask what Annual Percentage Rate (APR) would be charged and use it to compare all of your different finance options. Always use the APR rather than any other interest rate because it includes other charges such as administration fees. All finance companies are obliged to state the APR on finance documentation.

Along with the documentation provided by your lender should be information on how you can make a complaint. In the first instance you should contact your lender to make a complaint. Lender's have up to 8 weeks to provide you with a satisfactory response. If you are not content with the outcome after receiving a final response letter from the lender, or after 8 weeks, you will then need to make a complaint to the Financial Ombudsman Service (FOS).

You can reduce your monthly repayments by putting down a larger deposit at the start of a finance agreement or by deferring a lump sum until the end of the agreement. Deferring a lump sum (also known as a balloon payment) is only an option under certain finance agreements. You should talk to your local showroom about the options available to you.

Yes, but only within the first 14 days by giving written notice to the finance company. However, you will need to find alternative funding to pay for the car that you have agreed to buy as you can only cancel the finance agreement (not the purchase of goods). Make sure that you fully understand the terms and conditions before signing on the dotted line.

Yes, but depending on the amount you wish to settle, a penalty charge could apply. This will be explained in the terms and conditions of your agreement. Speak to your finance company for further information. This guidance outlines what your options are.

Most agreements will require you to repay the outstanding finance before you are legally entitled to sell the car. Under an unsecured personal loan agreement you are entitled to sell the car because you already own it.

Yes, most car dealers will be able to add a service and/or maintenance package.

A number of specialist lenders work with customers who have experienced credit problems in the past. They are listed in our member directory.

The options available to you will depend on the type of finance agreement you have entered into. For example, if you have taken out an unsecured personal loan then you may sell the car and use the funds to buy an alternative car. However, if it is a secured agreement (e.g. hire purchase) then the car is the property of the finance company. You should contact your finance company immediately to discuss the options that are available to you.