Best cars to own on finance

How to choose the right car for you

So, you’ve decided to buy a new car but aren’t sure to where to start? It’s understandable that you might be overwhelmed with options – there are thousands of different models available on the used car market. Whether you’re looking for a hot hatchback, family-friendly seven-seater, chic city car, or an electric vehicle, there’s something for everyone.

Buying a car is a big commitment. It’s likely to be one of the biggest purchases you’ll make in your lifetime, so don’t feel bad if you need to take your time.

Start with research. Put together a list of all the traits you need in a new car as well as the things you really want. Next, decide whether they’re non-negotiable or not; you might be happy to compromise on a car’s colour, for example, but can’t settle for less than seven seats.

Don’t forget about budget either. If you’re considering car finance, think about how much you can afford to put down as a deposit, what you’d like your monthly payments to look like, and how much you might need to spend on insurance, tax, fuel, and general car maintenance. Check out our handy car finance calculator to get an idea of what your repayments might look like depending on your credit score and how much you want to borrow.

Types of car finance

When you start looking for the best car finance deals, you need to figure out which type of loan suits you and your circumstances.

There are several finance options available:

HP Car Finance

Hire Purchase or HP car finance is one of the most popular types of finance. This loan lets you split the cost of a car into affordable monthly repayments over a fixed term, typically between one and five years. Your monthly payments can be higher than other finance options but, once you reach the end of your agreement, you’ll own the car. You’re also unlikely to have restrictions on how far you can drive.

PCP Car Finance

PCP car finance or Personal Contract Purchase gives you options at the end of your agreement. It could also be considered the best car finance for budget-conscious consumers as monthly payments are usually cheaper than they would be with other loan types. When you reach the end of your loan term, you can choose to either hand the car back, buy it by covering the one-off balloon payment, or use any remaining positive equity as a deposit in a new deal. But keep in mind that you’ll probably have to agree to mileage restrictions and might be charged extra for any damage.

Personal Loan

If you have a good credit score, you might be eligible for a personal loan. Although we don’t currently offer this type of car finance at CarFinance 247, it could be the right choice for you if you want to receive a lump sum that you can use to buy a car outright. If you keep up with your repayments, you can do whatever you like with the car: sell it, modify it, or take it on a long distance roadtrip! As this loan type isn’t secured against the vehicle, it does pose more of a risk for lenders, which is why they typically only approve buyers with a strong credit history.

How to get the best finance deal

The best deals on car finance for you will depend on your personal circumstances. No car buyer is alike and so the interest rate you’re offered will be tailored to you, your credit history, how much you can afford to borrow, and the vehicle you want to buy.

But that doesn’t mean you have to accept whatever loan you’re offered when visiting a car dealership. In fact, you could secure your car finance first so you can then go on to choose a car with confidence.

With a broker like CarFinance 247, you’ll have access to a panel of lenders who can offer loans to people with a variety of different circumstances. You can get a quote and you’re under no obligation to proceed. There’s no need to worry whether you’re getting the cheapest rate either; we’ll always look to find you the best car finance deals from our lending panel. We can even help you find finance if you have bad credit, are self-employed, or need a no deposit deal.

If you’re comparing car finance options, make sure you take note of the APR interest rate, the length of the agreement, and any mileage limits or other restrictions before making up your mind.

The best city cars to own on finance

Looking for cheap cars on finance that can take on city streets with ease? Our pick of the best city cars on finance proves that size really doesn’t matter:

Toyota Aygo

The Toyota Aygo would be a great choice for a first car thanks to its reliability, fuel economy, and youthful styling. The Aygo has been turning heads since 2005 thanks to its distinctive exterior; think oversized grille, contrasting roof, and contoured bumpers. It’s also agile, responsive, and offers a range of tech features including electronic stability control and a speed limiter.

Audi A3

A premium car with a refined sense of style, the Audi A3 has universal appeal. It features the high-end engineering that Audi is known for and it’s fun to drive with secure and stable handling. Apply for Audi car finance and you could even choose to make the switch to a more environmentally friendly city car by opting for the A3’s mild-hybrid or plug-in hybrid model.

Fiat 500

If you’re always ahead of the trends and need a car that can keep up, the Fiat 500 might be the best choice for you. It takes style cues from vintage vehicles, is compact, and handles well on the road thanks to its accurate steering and impressive safety features. The Fiat is also surprisingly economical to run and has enough interior space to be comfortable on long journeys.

Vauxhall Corsa

Looking for Vauxhall car finance? The Corsa is enduringly popular among new drivers and families thanks to its competitive pricing and relatively low insurance costs. A classic supermini, the car has earned a reputation for reliability and has only got better with age! The most recent models feature lighter steering and even smoother handling.

Hyundai i10

Fast becoming a favourite among city drivers, the Hyundai i10 is surprisingly spacious for a small car. Even so, it’s still nimble enough to navigate tight turns and fit into small parking spots. Its engine might not be the most powerful on the market, but its light controls make it easy to drive. There’s also lots of legroom and a boot with more than enough space for your weekly shop or a couple of suitcases.

The best hatchbacks to own on finance

If you need a good all-rounder, you can’t go wrong with a hot hatchback. These family-friendly vehicles offer power, performance, safety, and a generous dose of fun for drivers. Check out our top picks:

Ford Focus

Reliable yet exciting, the Ford Focus offers a punchy engine, responsive steering, and a controlled chassis that can take on corners with ease. There’s plenty of interior space for all passengers as well as a generous 375-litre boot. Drivers applying for Ford car finance for a Focus will also benefit from an 8-inch touchscreen and tech features like automatic high beam control, blind spot assist, and local hazard info.

Volkswagen Golf

It’s easy to see why the VW Golf is one of the world’s most sought-after cars. It’s reliable, easy to drive, offers a big boot, and is economical when it comes to fuel. Apply for Volkswagen car finance and you’ll be rewarded with a host of safety features too including curtain airbags, driver fatigue alerts, and lane assist technology that recognises road edges and signs.

Kia Rio

The Kia Rio has been described as the sensible choice – and there’s nothing wrong with that! It offers fantastic build quality and feels reassuringly solid on the road. Despite its sturdiness, the Rio has light controls and is easy to manoeuvre into small spaces. The boot is impressive too with enough room for your weekly shopping bags while the touchscreen controls are easy to navigate.

Vauxhall Astra

A well-respected all-rounder, the Vauxhall Astra has been built to last. But it’s not all about practicality, Vauxhall has created a stylish car that delivers a comfortable and smooth ride with barely any road noise. It’s fun to drive too thanks to its powerful engine and strong grip on the road.

Skoda Octavia

One of the most affordable hatchbacks to finance, the Skoda Octavia is also of the roomiest. Its elongated design might make it a little harder to squeeze into small spaces, but it does mean you can make the most of a 590-litre boot and plenty of legroom for all passengers. Drivers will enjoy the accurate steering and steady grip on the road as well as the array of family-friendly safety features included.

The best SUVs to own on finance

Whether you’re looking for seven seats, enough space for all the kids and the dog, or a car that can comfortably head off-road, an SUV could be the right car for you. Take a look at five of our favourites:

Renault Captur

The Renault Captur is a good-looking car. It’s all smooth lines with a wide grille, redesigned bumpers, and large alloy wheels with enough height and width to give passengers plenty of interior space too. The boot space is generous, but the rear bench of seats can be slid forward to give you even more room! The Captur is a practical SUV that feels safe thanks to its precise steering, strong grip, and stability through turns. And you can pair your phone easily thanks to the infotainment system with both Apple Carplay and Android Auto included.

Dacia Duster

Sometimes a no-frills SUV is all you need. If you’re looking for the best car finance deals, consider the Dacia Duster. The Duster is an affordable option that will easily fit all the family while also offering some off-road ability. The cabin is spacious and there’s enough room for three adults to sit comfortably in the back row of seats. Tech is limited compared to more premium models, but the Dacia still includes a built-in Satnav, air conditioning, a DAB radio, and cruise control.

Volvo XC40

The Volvo XC40 is a perfect example of Scandi chic. It’s smart, comfortable, very safe, and quietly stylish. Volvos are known for their versatility and the XC40 is no exception, providing a smooth ride over bumpy road, cruising down the motorway with ease, and navigating narrow one-way systems without issue. We’re big fans of the clever interior storage; look out for the removable armrest, built-in waste bin, and pop-up boot divider to help keep loose items in place.

Peugeot 3008

Despite being one of the smaller SUVs available on the market, the Peugeot 3008 offers one of the biggest boots. There are 520 litres available with all the seats up but a huge 1670 litres when they’re folded down – that’s almost the same as a small van! Its exterior is all sleek lines and refined curves while the cabin – known as the i-Cockpit – has a distinctive look and comes packed with handy tech features.

Nissan Qashqai

The Nissan Qashqai was one of the first cars to combine the qualities of a hatchback and an SUV. It’s a pleasure to drive, offers great cabin space, and boasts an impressive 504 litre boot. The exterior design is sleek and, if you choose to find Nissan car finance for a higher spec model, you can sit back and relax thanks to its quilted leather seats and massage feature.

The best electric cars to own on finance

Looking to make the switch to an electric car? With EVs and hybrids growing in popularity, more models are making their way onto the used car market every day. Here are five options that’ll help you go green in style:

Renault Zoe e-tech

Budget-friendly and good for the environment, the Renault Zoe-e tech is made for short journeys. Whether you’re looking for a car to take on the daily commute, sort out the school run, or take to the shops, the Zoe will fit the bill. It’s not the most comfortable at high speeds but does have a range of 245 miles if you need to go further. The boot is spacious for a supermini – an impressive 338 litres – while the electronic gear shift and parking brake free up room in the cabin. And it’s not just eco-friendly when it comes to fuel, the interior also features trim made from recycled seat belts and bottles.

Tesla Model 3

Tesla is often the first brand to come to mind when you think about electric cars and the Model 3 lives up to the hype. It has a sleek design that is sure to attract attention while its interior is stripped back and minimalist. A huge 15-inch touchscreen controls everything and the long-range model can manage approximately 360 miles between charges. If you opt to invest in Tesla’s self-driving technology, then you can sit back and relax every time you’re on the motorway. Keep your hands on the wheel and the car will accelerate, brake, and steer for you as well as changing lanes when you indicate.

Nissan Leaf

The Nissan Leaf is one of the most popular electric hatchbacks on the used car market – and it’s surprisingly affordable too! Its design is quietly chic with an angular front-end while the interior look is simple despite the wealth of tech features available. The Leaf is almost completely silent on the road, has a range of 168 miles, and can seat four adults comfortably. Drivers can also make the most of the built-in Satnav, smartphone mirroring, and digital display.

Hyundai Ioniq

While technically a hybrid rather than a pure electric vehicle, the Hyundai Ioniq is a great choice for families looking for a greener car. It’s a versatile option with plenty of cabin space, an understated exterior, and a large touchscreen display that makes navigating, parking, and choosing the perfect driving playlist a breeze.

Mini Electric

The electric equivalent of the classic Mini Cooper, this model will prove popular with people who are happy to swap space for style: solo drivers, small families, or those regularly driving short distances. Perfect for city drivers, the Mini Electric offers a range of 145 miles and can hit 0-62mph in just 7.3 seconds.