Car finance FAQs

Financing your used car is quick and easy with Cazoo. From how finance works to the different options available, find answers to all your questions.

Popular questions about car finance

Yes you can. Financing your car with Cazoo can make buying your next used car more affordable. We offer two types of finance – Personal Contract Purchase (PCP) or Hire Purchase (HP). All of our finance offers are subject to status.

Both HP and PCP allow you to pay for your car in monthly payments over an agreed period, with a fixed rate of interest.

The key difference is what happens at the end of each contract.

With an HP contract, you’ll own the car after making the final payment.

At the end of a PCP contract, you can either hand the car back to the lender, part exchange it for a new one, or pay the final repayment (including any purchase fee) to keep the car. 

New finance agreements are subject to status and affordability checks. If you hand the car back at the end of a PCP agreement, there may be extra charges if you go over the agreed annual mileage or if the car has damage over fair wear and tear. To find out more, read our guide on HP vs PCP.

Find your perfect Cazoo car, choose a delivery or collection slot and then select the option to finance your car. Once you’ve found a deal that suits you, you can then apply for it. If you’ve been approved by the lender, you’ll need to pay your deposit and sign your documents.

We’ll give you an instant finance decision wherever possible, but sometimes it may take longer. We’ll keep you updated on your application’s progress.

During your application, we'll need your personal details, employment details, address history, bank account details and a copy of your photo driving licence.

When you apply for finance, there will be a check on your credit profile and we need your personal details to do this.

Our finance calculator is designed to give you an instant estimate of your monthly costs for a PCP or an HP agreement, based on our representative example APR of 8.9%.

After being accepted for finance you’ll have 24 hours to pay your deposit. If your deposit isn’t paid within 24 hours, the car you applied for will go back up for sale on our website. 

After you’ve paid your deposit, you’ll have until midday the day before delivery or collection to sign your documents. If your delivery or collection day is on a Monday, you’ll need to sign your documents by midday on Saturday.

When you apply for finance a lender will run a hard credit check on your credit profile. Too many hard credit checks over a short period can affect your credit score for six months, which could reduce your ability to get approved for credit.

When you apply for finance with Cazoo, there are two types of credit checks - hard and soft.

A soft credit check is a preliminary credit check which is usually undertaken to understand if you’re eligible for certain products with lenders. This type of check will not be visible to other lenders and does not impact your credit score.

A hard credit check is completed when you’ve applied for credit and the lender reviews your credit report to help make a decision on your finance application. This type of check will be visible to other lenders and can have an impact on your credit score.

After being accepted for finance you’ll have 24 hours to pay your deposit. If your deposit isn’t paid within 24 hours, the car you applied for will go back up for sale on our website. 

After this you’ll have until midday the day before delivery or collection to sign your documents. If your delivery or collection is on a Monday, you’ll need to sign your documents by midday on Saturday.

Yes you can! Whether you have a HP or PCP agreement, you have the right to end your agreement at any time by paying off the remaining balance in full. If you have paid half of the total amount payable and are up-to-date with your monthly payments you also have the right to simply hand the car back. This is known as your voluntary termination rights.

If you want to pay off your HP agreement early, you’ll own the car outright but may need to pay an early settlement fee.

For a PCP agreement, the car’s mileage and condition will need to be line with your terms and conditions.

Most of our customers receive a very competitive APR of 8.9% representative.

We work with Black Horse who is a lender and Evolution Funding who are a broker to find you competitive finance all online.

Black Horse is one of the UK’s leading providers of car finance. Evolution Funding has been named ‘Best Broker’ at the Car Finance Awards for 4 years running and works with a panel of lenders, including BNP Paribas and Zopa.

Usually between 28-31 days after the lender has signed the agreement. You can usually change the date for free before you make your first payment. Please check your lender's terms and conditions.

Yes you can. You’ll need to notify the finance company and you may need to pay any applicable interest charges. You’ll also need to return your car to Cazoo.

Yes you can. You’ll need to notify the finance company and pay any outstanding balance.

Yes you can. The 7-Day Money Back Guarantee will apply if you withdraw from your finance agreement in the first 7 days and notify Cazoo. If you withdraw between 8 and 14 days, you can still return the car to Cazoo but you’ll have to pay for a pick up. See the Cazoo terms and conditions for full details.

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