FAQ

Apply for zero deposit vehicle finance online in a matter of minutes. It’s easy to get a direct quote if you know the vehicle's registration number and cost. Just use our car finance calculator. 

To apply for zero deposit finance, you’ll be required to submit a series of personal and financial details, which the lender will need to see in order to approve or decline your application. Some of the details you’ll be expected to share include: Your full name, date of birth and marital status A copy of your driving licence  Your current address and proof of residence via utility bills Employer’s name and address, as well as job title and salary (previous employment details may also be r...

Zero deposit vehicle finance isn’t necessarily available to everyone, so you’ll need to know what your current credit score is before you apply. No-deposit finance is usually only accessible to those with good or excellent credit scores; this is because borrowers in these categories tend to pose less risk to lenders. To be eligible for zero deposit car finance, you must be able to afford the monthly payments agreed between yourself and the finance company and be at least 18-years-old or over to...

When deciding whether or not no deposit car finance is the best option for you, first consider the advantages and disadvantages of this type of vehicle finance:  What are the pros of zero deposit finance? What are the cons of zero deposit finance? No upfront lump sum payment is required Interest rates may be higher than other forms of finance Owning a car can become more affordable with this option You may end up paying more than the car is worth ...

Sometimes paying a substantial amount upfront for your vehicle finance agreement simply isn’t possible - this is where zero deposit finance comes into its own. A no-deposit car finance deal works in the same way as one with an upfront fee, but the amount you pay back each month and the length of the contract will vary.  Because of the risk involved for the lender, zero-deposit vehicle finance deals can have higher interest rates than traditional options. No deposit deals are also likely to cost...

Not all vehicle finance deals require an upfront deposit; you can secure finance for a car, van, or motorbike with nothing to pay upfront. Zero deposit finance - also known as ‘no deposit’ finance - can be an ideal solution if you don’t have the funds available to make an upfront payment. 

There are a number of details you’ll need to provide as standard when applying for HP finance. Some of the details the lender will require include: Your full name, date of birth, and marital status A copy of your driving licence  Your current address and proof of residence via utility bills Employer’s name and address, as well as job title and salary (previous employment details may also be required) Payslips or bank statements for proof of income (likely to be from the last three months)...

Start your Hire Purchase application online with Octane Finance. Use our Octane Finance calculator to access a bespoke quote in minutes, which will give you an idea of just how much (or how little!) you could be paying each month to drive a brand-new vehicle. Simply enter the reg plate, the value of the car or van, and the number of miles you expect to cover.

Once all of your payments have been made, you’ll have the option to purchase the vehicle and become the legal owner. Up to this point, the lender is the legal owner of the car or van. If you choose to own the vehicle, you’ll most likely have to pay a small fee. This is known as an ‘Option to Purchase’ fee and is an administrative cost required to become the official owner and release the car from the finance company.

With a number of car financing options available to you, it’s important to first work out which one will best suit your needs.  What are the pros of HP finance? What are the cons of HP finance? Flexible repayment terms ranging from just 1 year up to 5 years (12 months to 60 months) You are simply ‘hiring’ the vehicle until you make a final end-of-contract payment Opt for a low upfront deposit (zero deposit deals can be sought by your broker, too) If you ...

HP is a great option if you want to own a vehicle without facing a large balloon payment at the end. Instead, you pay a small option-to-purchase fee with your final instalment. Bear in mind that the finance company retains legal ownership until that final payment clears. You can also voluntarily terminate the agreement once you have paid at least half the total amount owed. Unlike PCP, HP comes with no mileage restrictions, making it a practical choice for higher-mileage drivers.

Hire Purchase is a preferred option for motorists who wish to own a vehicle in the long term, but can’t afford to pay for it outright in the short term. HP can help cover the costs of a new or used vehicle, which you’ll repay in monthly instalments for the duration of the agreement. Rates for new cars or vans are usually more competitive than with used vehicles, and if you have a good credit score, then you are even more likely to be offered a favourable deal. 

To kick start a Hire Purchase agreement, you’ll need to put down an initial deposit (unless you can secure a zero deposit deal) as advised by the lender. In most cases, a minimum of 10% of the vehicle’s value is required, but the larger your deposit, the less you’ll pay back each month.

The deposit amount you agree to pay will dictate the remaining balance owed to the lender. This will be split equally into monthly payments over the agreed term, plus interest, which can be secured at a fixed rate. The contract length can be flexible to suit your needs, with Hire Purchase deals ranging from 12 to 60 months (5 years).

Hire Purchase (HP) is a form of vehicle finance that enables you, as the borrower, to pay for a car or van over a set number of months. As the name suggests, you are essentially ‘hiring’ the vehicle until all repayments have been made. When the contract ends, all that’s needed is a small admin fee to become the rightful owner.

Get started right away by applying for Lease Purchase finance online today! You can even estimate what your monthly payments will be by accessing our Octane Finance calculator to give you a better idea of budgeting. Enter the registration plate of the vehicle in question, tell us how much it is worth and how many miles you expect to drive each year too.  

When you apply for LP finance, the lender will need to know several details about you first. Avoid any delays to the process by having the following information available: Your full name, date of birth, and marital status A copy of your driving licence  Your current address and proof of residence via utility bills Employer’s name and address, as well as job title and salary (previous employment details may also be required) Payslips or bank statements for proof of income (likely to be fro...

Of course, there are advantages and disadvantages to opting for car finance.  What are the pros of LP finance? What are the cons of LP finance? Lower monthly payments compared to other finance options You’ll need to pay a large final lump sum You will own the vehicle at the end of the contract There’s no option to hand the vehicle back at the end of the agreement As such, you won’t be penalised for any damage incurred during the agreement T...

As we’ve mentioned, you will need to pay a final lump sum payment at the end of an LP agreement. But there are options available to you that could help; you may be able to extend the lease purchase contract to make additional monthly payments or refinance the vehicle to pay off the final balloon payment.

Your monthly payments will be determined by the upfront deposit you pay and the contract duration. Lease Purchase terms typically last between 24 months (two years) and 48 months (four years) and tend to have some of the lowest monthly repayments of all financing options. This is because they cover only part of the car's total cost over the agreed duration; the remainder will be paid via a final ‘balloon payment’. 

With Lease Purchase (LP), you make fixed monthly payments over the term of the agreement, with a large final balloon payment due at the end of the term. Unlike PCP, you cannot hand the car back, so LP suits drivers who are committed to owning the vehicle long term. Monthly payments can be lower than PCP or HP, but the balloon payment can run to several thousand pounds, so you need to plan for that cost before the agreement ends.

A deposit will be required to begin your LP agreement and will be offset against the total price you owe the lender. Although a 10% deposit of the car's total value is recommended, it is possible to put down as much as 50% to reduce monthly repayments.

Much like a Personal Contract Purchase (PCP) deal, a Lease Purchase (LP) agreement means you borrow money from a lender to own a new vehicle eventually. The difference with LP, though, is that you are required to pay off the final lump sum (also known as a ‘balloon payment’) to own the car - there is no option to hand it back at the end.

LP finance allows you to spread the cost of a vehicle over a set number of monthly payments. Remember that this form of financing requires you to take ownership of the car once the final payment is made, so it should only be considered if you intend to own the vehicle at the end of the contract.

Applying for PCP car finance is a straightforward process which you can begin online. By using our unique Octane Finance calculator, you can get a direct quote in minutes. Start by entering the registration number of the vehicle in question - you’ll need to know what the vehicle is worth and the amount of annual mileage you plan to drive too.

In order to apply for PCP vehicle finance, you’ll need to submit personal and financial details to the lender, who will check your eligibility. Some of the details you’ll be expected to share include: Your full name, date of birth and marital status A copy of your driving licence  Your current address and proof of residence via utility bills Employer’s name and address, as well as job title and salary (previous employment details may also be required) Payslips or bank statements for proo...

When it comes to car finance, we want you to make the correct decision. To help, we’ve drawn up a list of the pros and cons when it comes to choosing PCP finance: What are the pros of PCP finance? What are the cons of PCP finance? You get to choose the upfront deposit amount - zero deposit options are available too! A final lump sum is required in order to own the vehicle Flexible repayment terms from 24 to 48 months as standard Exceeding the pre-agreed ...

The amount of the upfront deposit you pay determines how much money you’ll need to borrow overall. The lender will calculate this based on the term’s duration, which is usually a minimum of 24 months (two years) and a maximum of 48 months (four years), to work out how much you will pay back each month (with added interest, of course).

As a flexible finance option, a PCP agreement allows you several choices at the end of the term. You can choose to pay for the vehicle in full and keep it, part-exchange it at the end of the contract, or return it at the end of the term to begin a new agreement.

Even if you had planned to own the car at the end of the agreement, your preferences may have changed during the term, which is one of the advantages of engaging in PCP vehicle finance. There are three options available to you at the end of a PCP agreement: Choose to make a final lump sum payment to own the car legally Decide to part-exchange the vehicle by using the equity you will have hopefully built up, as a deposit for your next one Return the vehicle with no more to pay   Let’s st...

Signing up to PCP finance means you are borrowing money from a lender to purchase a vehicle you wouldn’t otherwise have been able to afford as a one-off payment. When you apply for PCP finance, the lender will look into your credit history to ensure you are a reliable borrower. A PCP agreement is the ideal option if you want to own a newer vehicle but don’t want to pay for it up front. However, you will also have the option to hand it back, too, if you’d prefer to upgrade to another model at th...

You’ll be required to put down an initial deposit as part of your PCP finance agreement (although some zero deposit deals are available too). The lender will determine this amount, but it is usually around 10% of the vehicle's purchase price. The bigger the deposit, the less your monthly repayments will be.

Personal Contract Purchase (PCP for short) is a popular car financing option that often offers lower monthly payments compared to a personal loan. It is a way of borrowing money for a new vehicle that you’ll repay over an agreed-upon period before you own it outright.

Yes, you can use HP to finance an EV car. With Hire Purchase (HP), you pay a deposit followed by fixed monthly instalments over 2 to 5 years. Once the final payment is made, you own the car outright. Unlike PCP, there is no balloon payment at the end. The finance company retains legal ownership of the vehicle until all repayments are complete, so missed payments can result in repossession. HP is a straightforward route to ownership, spreading the cost into manageable monthly payments without any...

Hybrid cars have grown in popularity in the UK for offering the combined benefits of electric power and fuel efficiency. While the upfront prices for hybrid models can seem high, numerous attractive finance options make owning one very achievable.  Many lenders recognise the lower running costs and tax benefits of hybrids by offering competitive finance products, such as PCP agreements, with lower interest rates. These allow affordable monthly payments by spreading the cost over time, with a fi...

Going electric is the future of driving, but making the switch can feel financially intimidating. That's why choosing electric-vehicle finance is the smart route to emission-free motoring. Our Octane Finance specialists make the whole process simple and cost-effective so you can focus on enjoying the benefits of driving an electric vehicle sooner than you think.