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Your Car Finance Questions Answered

Ten years ago the majority of car buyers would take what was then the ‘traditional’ car buying route – buying outright. Since then, car companies have introduced a car financing option making acquiring a car more affordable and realistic. With an option to simply acquire a car in return for monthly payments, getting a new vehicle has never been easier.

The benefits of car financing are many:

  • You could get a better, high-quality car
  • Lower running costs
  • Cheaper tax
  • Less likely to break down
  • Low depreciation rate (lower monthly payments)
  • Part exchange option – trade in your car, we will take your old vehicle off your hands and lower your monthly instalments
  • Access to vehicles you may not have been able to afford to buy outright

Just like taking any sort of financial agreement, it is important to understand all the details to what you’re signing up for. Here, we answer some of your most popular car finance questions.

How long do car finance agreements last?

Different lenders have different lower and upper limits. Long-term finance agreements at Hippo Motor Finance tend to range from 24-60 months, whilst short-term agreement periods can either be 3, 6, 9 or 12 months. A longer agreement length gives lower monthly payments.

Is there a minimum or maximum age limit?

As with most finance agreements, our minimum age requirement is 18. Upper age limits depend on the lender.

Do I have to have good credit?

Although having a good credit profile is likely to make securing finance simpler, Hippo Motor Finance specialises in working with all financial backgrounds, including those with poor and bad credit scores. For specialist advice on finance approval, contact us today.

Is insurance included with the car finance agreements?

No, we do not offer car insurance.

Do I have to pay a deposit?

We have a wide range of deposit options available, including no and small deposit options. A higher deposit would give smaller monthly payments.

What happens at the end of the agreement?

This would depend on the finance agreement type you opt for. The options at the end of the four main types of leasing and finance options are explained below.

Personal Contract Purchase (PCP)

  • Return the car
  • Buy the car by paying the balloon payment (future value figure)
  • Part exchange for a new car

Personal Contract Hire (PCH)

  • Return the car

Hire Purchase (HP)

  • You are the legal owner of the car with no further payments required

Lease Purchase (LP)

  • Own the car – the balloon payment is made and you are the legal owner of the vehicle
  • Part exchange once the balloon payment is made

Still looking for more answers or information on financing a car? We are here to help you. Call us on 01254 956 777, drop us an email at or fill out the short enquiry form with your contact details.

Representative Example of Credit

We expect more than 51% of our customers to achieve this rate.

Loan AmountTotal Cost of CreditRepresentative APR48 Monthly PaymentsDeposit AmountLoan TermTotal Amount Payable
£7,500£3019.1619.1% APR£219.77£048 Months£10,519.16

We are a broker not a lender and our registered office is Trident Park, Trident Way, Blackburn BB1 3NU. Our contact number is 01254 919000

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