Making Used Car Finance Easy

If you’d like to finance your next used car purchase, you’ll have several options open to you.
Arranging your finance through the dealership is often the best way to fund your used car and offers many advantages to borrowing from a bank or other loan provider.
Dealer finance allows you to get a finance agreement that suits your borrowing requirements.
The interest rate is fixed which means that you know exactly what your monthly payments will be for the duration of the agreement and won’t change.

Dealer finance also often offers a better rate of interest and may also mean you’re more likely to be approved.

Arranging finance with Sparshatts in partnership with Santander Consumer Finance is quick and easy. We can get approval turned around in minutes! Our expertise with finance means that even if you think you might have a poor credit rating we can help arrange finance for you.

We offer two main ways to finance your Used Car.

Purchase Plan Finance

This short video provides a simple explanation of Purchase Plan and how it works.

What is Purchase Plan finance?

A simple way of financing that gives you the certainty of a fixed interest rate, and fixed monthly payments throughout the agreement. The initial deposit and repayment period can be structured to help meet your budget and the length of time you expect to keep the car. You can trade in your existing car and put this towards the initial deposit, or if you wish, just put down a cash deposit.

Purchase Plan Finance

How does it work?

  • Your dealer will structure the agreement to meet your individual requirements based on the car, the agreement duration required, the available deposit and your monthly budget.
  • After paying the initial deposit you make regular monthly payments to cover the amount borrowed plus any interest and fees.
  • The interest rate is fixed which means you’ll know exactly how much you will repay throughout the term of the agreement.
  • Once all of the payments have been paid the car is yours.

Features and benefits

A guaranteed fixed monthly payment, allowing you to budget with confidence.

This type of agreement is covered by the Consumer Credit Act 1974, which means: You can pay off lump sum amounts during the agreement. You can settle the agreement early by repaying the required amount.

Other things you should know:

The agreement is secured against the car. If you do not keep up your repayments, we may take steps to recover the money that you owe us, which may include repossession of the car. If you put down a lower deposit it could mean a higher risk of negative equity if you settle early or want to change the car before the end of your finance agreement. Only when all payments under the agreement have been made do you become the owner of the vehicle. This type of finance agreement is not available to corporate entities, e.g. limited companies, PLCs or limited partnerships.

Personal Contact Purchase (PCP) Finance

This short video provides a simple explanation of Personal Contract Purchase and how it works.

What is PCP finance?

Similar to a Purchase Plan agreement but with additional flexibility since part of the cost is deferred until the end of the agreement which may give you the benefit of lower monthly payments. The deferred amount is known as the Guaranteed Future Value (GFV) sometimes known as Optional Final Payment.

Personal Plan Finance

How does it work?

  • The dealer will agree with you an estimated annual mileage and this will be used to determine the car’s Guaranteed Future Value (GFV)
  • You agree on the amount of deposit, and this figure combined with the agreement duration and GFV will determine the amount of your monthly payment
  • You sign the agreement, pay the deposit and then make the monthly payments
  • The interest rate is fixed which means you’ll know exactly how much you will repay throughout the term of the agreement
  • At the end of the agreement we’ll write to remind you of the three available options
  • You decide which option is best for you. Your dealer may be able to help if you decide to part exchange the car.

At the end of the agreement you have three options:

Option 1 Retain the car
Simply pay the Guaranteed Future Value, and the car is yours.

Option 2 Renew the car
Choose another car, using and excess part exchange value that is above the Guaranteed Future Value towards your deposit.

Option 3 Return the car
There's nothing more to pay if the car is in good condition and within the agreed mileage terms.

Features and benefits

A guaranteed fixed monthly payment, allowing you to budget with confidence.

Potentially lower payments than a Purchase Plan agreement.

Variety of options available at end of the agreement.

You can match the length of your agreement with the time you want to keep the vehicle.

This type of agreement is covered by the Consumer Credit Act 1974, which means: You can pay off lump sum amounts during the agreement. You can settle the agreement early by repaying the required amount.

Other things you should know

The agreement is secured against the car. If you do not keep up your repayments, we may take steps to recover the money that you owe us, which may include repossession of the car. At the end of the agreement it is possible there may not be any equity (the difference between the final payment and the value of the car). A higher deposit means you will have lower monthly repayments. However it will not change the GFV set at the start of the agreement, or the valuation at the end of the agreement. Only when all payments under the agreement have been made (including Guaranteed Future Value) do you become the owner of the vehicle. If you decide to return the car at the end of the agreement and it has covered more miles than agreed, you will be required to pay a charge for excess mileage. In addition, if you have not kept the vehicle in reasonable condition for its age and mileage you may be charged a refurbishment cost. This type of finance agreement is not available to corporate entities, e.g. limited companies, PLCs or limited partnerships.

Sparshatts Group Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486). Permitted activities include advising on and arranging general insurance contracts and acting as a credit broker not a lender.

We can introduce you to a limited number of finance providers and may receive differing levels of commission from each of them for the introduction. All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over, Guarantees may be required.