Deposit
What you put in at the start, including any part-exchange equity. You can change it later.
Car finance for first-time buyers
If you have not bought a car on finance before, start with the figures that matter: a monthly amount you are comfortable with, a deposit you could put down, and how long you want to pay. Then check eligibility before you fall for a particular car.
Get a personalised finance profile with no impact on your credit score.
What to think about first
A monthly payment you can keep up with is more useful than starting from a car you like. Eligibility asks for a monthly budget band so the site can show cars around that level.
A deposit reduces the amount you finance. Part exchange can contribute if you already have a car. Term is how many months the agreement lasts — Oakwood does not extend it automatically to make a deal fit.
How Oakwood can help
Check eligibility with a soft search, browse used cars and vans with monthly figures first, then build a deal when you are ready.
Use the finance calculator to see how price, deposit, term and HP or PCP change an estimated payment. It is an illustration, not an application.
Eligibility before you apply
Eligibility gives you a personalised finance profile with no impact on your credit score. You can then browse with more confidence.
A regulated application is a later step on a specific vehicle. Your final terms are confirmed then.
HP, PCP, deposit and term
Monthly affordability
Choose a band that feels comfortable. Cars are easier to compare when the monthly figure comes first.
Term
Longer terms can lower the monthly illustration and raise the total payable. You choose the term yourself.
HP or PCP
HP spreads the amount financed until you own the car. PCP usually holds back an optional final payment and uses annual mileage.
HP and PCP compared
Neither product is universally better. Use this as a guide, then compare both on a vehicle.
Monthly payment
- HP
- The amount financed is spread across the term.
- PCP
- Often lower because an optional final payment is held back until the end.
Final payment
- HP
- There is no optional balloon payment on HP.
- PCP
- An optional final payment is usually due at the end of the agreement.
Mileage
- HP
- HP does not use a PCP-style annual mileage choice.
- PCP
- Annual mileage is part of a PCP agreement and can change the illustration.
Ownership
- HP
- You own the vehicle once all payments are made.
- PCP
- What you can do at the end is confirmed with the finance provider during application.
Total payable
- HP
- Shown with the monthly figure so you can see the overall cost of the illustration.
- PCP
- Includes monthly payments, deposit and any optional final payment shown on the illustration.
Frequently asked questions
I’m new to car finance. Where do I start?
Check eligibility first. It takes a short set of questions and uses a soft search. Then browse cars with monthly figures, and use the calculator if you want to try different deposits or terms.
Should I choose HP or PCP?
Neither product is universally better. HP is simpler ownership over the term. PCP often has a lower monthly illustration because of an optional final payment and includes annual mileage. Compare both, then confirm details in a deal.
Do I need a large deposit?
Not necessarily. Eligibility lets you start from £0. A deposit still changes the amount financed. Some vehicles may need more deposit if they sit above your finance profile.
Check my eligibility
Get a personalised finance profile with no impact on your credit score.