How to Finance a Fiat

Why People Finance a Fiat

Fiat has long been a favourite among UK drivers seeking affordable, stylish motoring. The brand is synonymous with city cars like the 500 and Panda, as well as practical family options such as the Tipo. With new Fiat models typically ranging from £13,000 to £25,000, and used examples available for much less, they appeal to first-time buyers and seasoned motorists alike.

Given the range of prices and specifications, many buyers opt for car finance to help spread the cost. Financing a Fiat offers flexibility, making it easier to drive away in a new or nearly-new model without a hefty upfront payment. Whether it’s a Personal Contract Purchase (PCP), Hire Purchase (HP), or a lease, the right finance package allows you to manage your budget while enjoying the benefits of a reliable, economical vehicle.

Fiat drivers often choose PCP or HP to keep monthly payments low and preserve future options, especially as new models continue to evolve with hybrid and electric variants.

Your Car Finance Options Explained

Understanding your finance options is key to making an informed decision. Here are the main routes UK buyers use when financing a Fiat:

PCP (Personal Contract Purchase)

PCP remains one of the most popular choices for new and nearly-new Fiats. Here’s how it works:

• Low monthly payments: Because you’re only paying for the car’s depreciation, not the full value.

• Flexible end options: At the end of the contract (typically 2–4 years), you can either pay a final balloon payment to keep the car, hand it back, or part-exchange for a new Fiat.

• Example: A Fiat 500 on PCP could cost £180/month with a £2,000 deposit, followed by a £6,000 balloon payment if you want to own it at the end.

• Cons: Exceeding agreed mileage or damaging the car can incur charges. The final payment can be substantial.

HP (Hire Purchase)

Hire Purchase is a straightforward way to own your Fiat outright:

• Fixed monthly payments: You’re spreading the full cost of the car (minus deposit) over 2–5 years.

• Ownership: At the end, you own the vehicle with no further payments.

• Example: A used Fiat Panda might be £170/month over 4 years with a £1,500 deposit.

• Cons: Monthly payments are higher than PCP, but there’s no final lump sum.

Lease or PCH (Personal Contract Hire)

Leasing is an option for drivers who want a new Fiat every few years without the hassle of ownership.

• Fixed-term rental: You pay a set amount each month and return the car at the end.

• Maintenance included: Many Fiat lease deals include servicing and road tax.

• Cons: No option to buy the car, and you’re tied into the contract.

Personal Loans

Some buyers prefer a personal loan from their bank or an online lender. This option gives you cash to buy the car outright, then repay the lender in instalments.

• Pros: You own the car from day one and are not tied to mileage limits.

• Cons: Approval depends on your credit score, and rates may vary.

How to Get the Best Deal on a Fiat

Finding the best Fiat car finance deals UK requires a strategic approach. Here’s how you can maximise your savings:

• Compare lenders and online brokers: Don’t settle for the first offer. Use comparison tools and brokers to view a range of Fiat PCP offers and HP rates side-by-side. Specialist brokers like Kandoo often have access to exclusive deals.

• Check your credit score: Lenders offer the best rates to those with strong credit profiles. Obtain your credit report in advance and correct any errors.

• Negotiate dealer finance: Dealers may offer tempting Fiat finance packages, but always ask if they can improve the terms or match an online rate.

• Deposit size matters: A larger deposit can reduce your monthly payments and unlock better interest rates. Aim for 10–20% of the car’s price if possible.

• Timing can save money: The end of a quarter, registration plate changes (March and September), or when new models launch are prime times for discounts and enhanced finance incentives.

• Look for extras: Some deals include free servicing, insurance, or breakdown cover. Factor these into your calculations to get the true value.

Ultimately, the key is to compare Fiat finance offers, read the small print, and ensure the deal matches your driving needs and budget.

Eligibility & Credit Check Tips

When you apply for Fiat car finance, lenders look at several factors to assess your eligibility:

• Income and affordability: Can you comfortably afford the monthly repayments?

• Employment stability: Lenders prefer applicants with a steady job or regular income.

• Credit history: A clean credit file helps, but not all lenders require perfect credit.

• Existing debts: High levels of borrowing elsewhere can affect your application.

If you have bad credit, don’t despair. Brokers like Kandoo work with a panel of lenders, some of whom specialise in helping customers with fair or poor credit. Even if you’ve had financial difficulties in the past, you may still be eligible for a competitive Fiat finance deal.

Top tip: Using a broker to check eligibility typically involves a soft credit search, which won’t affect your score. This lets you compare Fiat finance deals UK-wide with no obligation.

Example Finance Scenarios

Let’s consider a practical scenario:

Fiat 500 Lounge, 3 years old, price: £10,000

Note: Figures are approximate and for illustration only. Actual rates depend on your credit profile and the lender.

With PCP, you benefit from lower monthly payments, but face a larger sum if you want to keep the car. HP has higher monthly payments but you own the vehicle at the end. Leasing sits in between: you pay to use the car, then hand it back.

Common Questions About Fiat Finance

Can I get 0% APR on a Fiat?
Some new Fiats may qualify for 0% APR offers, especially at the end of a model cycle or during special promotions. However, these deals often require a higher deposit and are typically limited to top credit profiles.

Is it cheaper to lease or finance?
Leasing can offer lower upfront costs and covers depreciation, but you never own the car. Financing via PCP or HP may cost slightly more monthly but builds towards ownership or equity. The best choice depends on your circumstances and mileage.

Can I get Fiat finance with bad credit?
Yes. Specialist lenders and brokers like Kandoo help applicants with less-than-perfect credit find suitable deals. Expect to pay a higher interest rate, but you can still access both new and used Fiat finance packages.

Can I refinance my current Fiat?
If you already own a Fiat on finance and want to reduce your payments or get a better rate, refinancing is possible. Check your current agreement for early settlement terms, and compare new offers through brokers for the best outcome.

What deposit do I need for Fiat finance?
Deposits typically start from as little as 5–10% of the car’s price, but putting down more can secure a better deal.

How Kandoo Can Help

At Kandoo, we understand that finding the best Fiat finance deal can be daunting. That’s why we work with a panel of trusted UK lenders to help you compare offers—quickly, securely, and with no impact on your credit score.

Whether you’re looking for a Fiat 500 PCP deal, wanting to explore HP on a used Panda, or simply searching for the lowest rates, our expert team is here to guide you every step of the way.

Ready to get started? Compare Fiat finance deals now →