The cheapest way to finance a car depends on a few variables which include the amount of time you want the loan over, the type of loan you have and the APR. Always be aware that that the loan that offers the lowest monthly repayment may not always be the best option as there is a chance you could end up paying back more in interest over the period. PCP car finance could be the most cost effective finance option for you because unlike with Personal loans and HP, you don’t have to borrow the full amount your vehicle is worth. With PCP car finance you borrow the difference between the price now and the price the lender thinks your car will be worth at the end of your finance agreement, this is called the Guaranteed Minimum Future Value. However, you won’t own the car at the end of your loan unless you choose to pay the balloon payment.

You can apply for a car or Vehicle finance loan with Cavendish Capital if you’re over 18 years old and have a minimum of three years’ address history in the UK.

With Cavendish Capital you can get a decision on the same day. It's really simple, just make the application online or by speaking to one of our experts, let us process the paperwork like lightning and all being well your dedicated account manager will come back to you with an approval in principle and discuss the next steps to getting your car.

The cost of car finance is normally based on the amount of money you need to borrow plus the interest and any other charges that you’ll pay on the loan over the repayment period. The interest rate that you’re offered depends on your credit score, so improving your score could give you access to better rates.

Getting a vehicle on finance is always worth it if it’s the best choice for you and your circumstances and helps you financially. If you have savings in the bank, buying a vehicle outright could be the cheapest option if you plan to keep the car for a long period of time and you are not worried about depreciation. If you don’t have the money to pay for a car all at once or you would like to change the car every year or so PCP could be the better choice for you.