How Does Vehicle Financing Work

Mis-sold Car Finance & Industry Changes

Car finance has changed a lot since January 2021. New rules aim to stop situations where commission structures push customers toward pricier deals. Many dealers now offer a single “fits-all” product so they can serve both strong and weak credit profiles—however that one-size approach can be more expensive if you’ve got good credit.
That’s where a broker such as ClickAwayFinance comes in: we find you lenders and products that actually fit your profile, rather than the dealer’s default.

Why Use a Broker for Car Finance?

Using ClickAwayFinance can access tighter rates—particularly with a good credit score. We shop around a broad panel of lenders, break down the terms simply, and take the legwork out of it. Because we don’t have to work for a single franchise, we can also assist in finding the car at a reasonable price.

Types of Car Finance Options

Personal Contract Purchase (PCP)

Usually the cheapest monthly to pay. You pay fixed instalments over the period, then decide to return the car, pay the optional last sum to retain it, or part-exchange and upgrade.

Hire Purchase (HP)

You borrow the total cost of the car with fixed instalments. No balloon payment at the end—once you’ve made the last instalment (and paid any option-to-purchase charge), the car is yours.

Lease Purchase

Like HP but with a bigger last payment to maintain monthly repayments low. At the end you pay off the balloon to have the vehicle outright, or sell/refinance as necessary.

Business PCP

PCP designed for business usage. Provides fixed monthly payments and freedom at the end-popular with firms that roll into newer cars regularly.

Business HP

Simple way to ownership for businesses that like the assets on the balance sheet without a balloon payment.

Business Lease Purchase

Business version of Lease Purchase: less monthly outlay with a terminal balloon to acquire the car.

Leaving an Agreement Early

You can terminate a finance agreement early, but penalties might be payable depending on your contract and the car’s value at the time. Speak to us first—our explanation will be clear.

Car Rejection Rights (Consumer Rights Act 2015)

If the car is faulty, not described, or not fit for purpose, you could reject it within 30 days for a full refund. Subsequent remedies can be different after that. We’ll guide you through the process and deal with the supplying dealer as necessary.