Finance at Affordable Cars

Based in York, Affordable Cars offers an enviable range of used quality vehicles. Our showroom offers over 400 cars ranging from the prestigious BMW, Mercedes and Porsche to the more affordable Vauxhall, Toyota and Ford ranges. Whatever it is you are looking for we are sure we have something to offer.

If you are looking for finance then you have come to the right place. No matter what your budget our dedicated finance team is here to help. As a specialist in finance, Affordable Cars will help secure the right deal for your pocket. We have established relationships with all the high street lenders and specialist car finance houses, so our team will do the legwork and scour the market to find that competitive deal. No matter what your credit history or budget we will help. Of course, we are able to offer you the flexibility to commit to what suits your individual finances, whether it be a £0 deposit, the length of term your car loan covers or opting for HP or PCP. Whatever suits you our dedicated in house finance team will help to organise for you. We want you to drive away a quality used car that is reliable and most of all affordable.

For your convenience we offer a quick online tool to check your eligibility. Our team will give you a quick response, so you can get down to the job of choosing the right car for you. All our cars are ready to drive away from our dealership, so we pride ourselves on organising your finance deals quickly and efficiently. It has never been easier to finance and drive away the car of your dreams.

Our team here aims to make your car buying experience as hassle free as possible, so we check our prices to ensure we offer competitive deals on all our vehicles.

With over 30 years' experience in the industry, Affordable Cars offers the whole package. Our extensive range of vehicles are inspected and prepared to the highest standards, are price checked and of course with our superb finance rates are more affordable than ever.

*External finance companies are subject to £349 admin

​What is Personal Contract Purchase (PCP)?

Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used car.

It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly instalments over a term typically between 18 to 48 months.

What makes PCP different to Hire Purchase (HP) is that your monthly instalments are paying off the depreciation of the car, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the car. The balloon payment is often referred to also as the Guaranteed Future Value (GFV).

How does PCP actually work?

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When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Business Managers.

We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.

At the end of your agreement you will then have three options:

Return – Simply return the car the back to us 

Retain – Keep the car by paying the optional final payment

Renew – Trade it in for another car

For a quotation, help, or advice contact us and ask to speak to one of our Business Managers.

What are the advantages of PCP?

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  • Monthly payments on a car financed by PCP are usually lower than if your car is financed by a Hire Purchase agreement.
  • If you decide not to buy the car, you can simply walk away when you've made all the payments.
  • Similar to PCH, you can drive away a new or used car every few years (dependent on the chosen term) without worrying about selling it on.
  • If your car is worth more than the Guaranteed Future Value then you can use that equity towards a deposit on a new car. 

What should you consider when opting for a PCP?

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  • If you want to buy the car you will need to pay your final balloon payment (the Guaranteed Future Value).
  • Similar to PCH, you will need to agree on a mileage allowance at the beginning of your contract and there may be excess mileage charges if you exceed this.
  • You won’t be able to sell the car without settling the finance.
  • You won’t own the car until you have made all of your repayments.
  • You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.

Can I settle my PCP agreement early?

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​You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your car is worth, and what you still owe and there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your car is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next car.

​What is Hire Purchase (HP)?

Hire Purchase is a way to finance buying a new or used car. You will normally pay an initial deposit and will pay off the entire value of the car in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the car outright.

What are the advantages of HP?

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  • You’ll be able to drive away a car that you may not have managed to buy outright.
  • Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your Hire Purchase agreement, so you'll avoid excess mileage charges.
  • Once you’ve made your final monthly payment, including the option to purchase fee, you'll have full ownership of the car.

What should you consider when opting for HP?

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  • Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the car.
  • You won’t be able to sell the car without settling the finance.
  • You won’t own the car until you have made all of your repayments.
  • You’ll need to keep the car properly insured, maintained and in your possession until the full value is paid off.

Can I settle my HP agreement early?

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The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.

For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the car early.

Free & Fast Free Valuation When selling or part-exchanging, it is essential to know what your vehicle is worth in order to get the best price.