Car finance, explained plainly
How hire purchase works, what a representative APR means, who we are paid by, and a worked example at 12.9% APR representative.
In one paragraph
ONECARS arranges car finance as a credit broker, not a lender, introducing customers to Vizion Finance. Our representative APR is 12.9%. On £8,995 with a £899.50 deposit over 48 months that is £213.96 a month, total payable £11,169.58. Finance is subject to status; we may receive a commission from the lender and we say so.
Representative example: Cash price £8,995.00. Deposit £899.50. Amount of credit £8,095.50. 48 monthly payments of £213.96. Total amount payable £11,169.58. Total charge for credit £2,174.58. Representative 12.9% APR, fixed interest rate 12.2% p.a. ONECARS GARAGE LTD is authorised and regulated by the Financial Conduct Authority (FRN 943671) as a credit broker, not a lender. We introduce customers to Vizion Finance, who may pay us a commission. Finance is subject to status; terms and conditions apply. You must be 18 or over and a UK resident.
Who is lending
Not us. ONECARS Garage Ltd is authorised by the Financial Conduct Authority (firm reference 943671) as a credit broker. We introduce you to Vizion Finance, who place the agreement with a lender. The lender may pay us a commission for the introduction; we tell you that because we are required to and because you should know.
What "representative" means
A representative APR is the rate at least 51% of customers accepting the offer are expected to receive. It is not a promise of your rate — that depends on your circumstances — but it is the honest figure to plan around, and every monthly figure on this site is worked from it.
A worked example
The representative example at the top of this page is worked on £8,995 with a ten per cent deposit over 48 months, from the same arithmetic that prices every car on the site — it is computed, not typed, so it cannot drift from the terms.
The monthly figure uses the effective annual rate — the way UK APR is defined — not the APR divided by twelve, which overstates every payment.
Hire purchase, in one paragraph
You pay a deposit, then fixed monthly payments. The car is the lender's until the final payment, then it is yours. You can settle early and the interest is reduced. Miss payments and the lender can take the car back — so borrow what the budget carries, not what the approval allows.
ONECARS Garage Ltd, FRN 943671, credit broker not a lender. Nothing here is financial advice.