There are a number of factors that affect the cost of a car on finance. With this in mind the cheapest car on finance can change from person to person depending on the car finance type they go for and a number of other factors, such as a credit score, that can change the interest or repayment term and as such make a car more expensive.

With years of experience though we can give you an overview of the cars that are currently the cheapest to buy on different types of car finance.

What is the cheapest car to buy on a PCP finance deal?

As covered in our PCP guide, this type of car finance can actually allow you to buy a car that may have previously been too much for you. Your fees will be lower, but you won’t necessarily own it at the end. You can however pay a ‘balloon’ payment based on the car’s guaranteed future value (GFV), or else you can return it and walk away or even upgrade your car to something else.

What is the cheapest car to buy on a personal loan deal?

A personal loan allows you to essentially walk in to a dealer like you’re a cash buyer. This means that the overall cost will come down to the deal you have negotiated and the interest rates and repayment term.

What is the cheapest car to buy on a HP deal?

A hire purchase deal can be perfect for people who are unsure if they want to own the car outright at the end, as it’s not automatic. Most lenders will allow you to pay a fee at the end of the agreement to own the car outright, and this can be as little as £1. This can be one of the cheapest ways to own a car, and it doesn’t have any mileage allowance so there’s less risk of additional fees.

What is the cheapest car to buy on a PCH deal?

While you can’t own a car outright with a PCH deal, it can still be an effective way of financing a vehicle. As you essentially pay the value the car will depreciate it can be a very affordable way to get behind the wheel.

If you need to work out what you can afford, please use our car finance calculator. If you’re ready to get driving your new car then apply for car finance with us today.