How to Finance a Hyundai in the UK

Why People Finance a Hyundai

Hyundai’s reputation for reliability, cutting-edge technology, and value for money has cemented its place on UK roads. Models such as the Tucson, Kona, and i10 appeal to a broad range of buyers, from young professionals to growing families. The average new Hyundai in the UK typically costs between £15,000 and £35,000, depending on model and trim. For many, financing rather than outright purchase makes sense—allowing drivers to access a newer, better-equipped car while spreading the expense over manageable monthly payments.

Hyundai buyers are often attracted to Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements. These options enable customers to either own the car outright at the end of the term or simply return it and move on to a newer model. For those who value predictability in their motoring costs, financing a Hyundai is a rational and flexible choice.

Your Car Finance Options Explained

Navigating Hyundai finance deals can feel complex, but most arrangements fall into a few clear categories:

1. Personal Contract Purchase (PCP)
This is one of the most popular choices for Hyundai drivers. With PCP, you pay a deposit (often 10%), followed by monthly payments over two to four years. At the end, you can either:

• Pay the final balloon payment to own the car

• Hand the car back and walk away

• Trade in for a new Hyundai on a new PCP deal

Pros: Lower monthly payments compared to HP; flexibility at contract end.
Cons: Higher final payment to own outright; excess mileage or damage charges may apply.

2. Hire Purchase (HP)
With HP, you’ll pay an initial deposit and then fixed monthly payments for an agreed period. Once all payments are made, the car is yours.

Pros: No large final payment; you own the car at the end.
Cons: Higher monthly payments than PCP; less flexibility if you want to change cars regularly.

3. Personal Contract Hire (PCH) / Leasing
You effectively rent the car for a set period and mileage. At the end, simply return it. This can suit those who want a new car every few years and are happy never to own the vehicle.

Pros: Fixed monthly cost; road tax and maintenance often included.
Cons: No option to buy; strict mileage and condition rules.

4. Personal Loan
Some buyers use a bank loan to buy their Hyundai outright, then repay the loan monthly.

Pros: Immediate ownership; no mileage limits.
Cons: Typically requires a good credit score; rates may vary.

In summary: Hyundai PCP deals often feature lower monthly payments but require a larger sum at the end if you wish to keep the vehicle. HP is straightforward for buyers who know they want to own the car, while leasing offers low-hassle motoring for those who don’t.

How to Get the Best Deal on a Hyundai

Securing the best Hyundai car finance deals in the UK requires a combination of research, timing, and negotiation. Here’s how you can maximise value:

1. Compare Lenders and Online Brokers
Don’t settle for the first offer from a dealership. Use online brokers like Kandoo to compare Hyundai PCP offers, HP rates, and lease deals from a wide panel of lenders. This ensures you see competitive interest rates and terms tailored to your circumstances.

2. Check Your Credit Score
A stronger credit score opens doors to the best Hyundai finance deals. Access your credit file through services like Experian or Equifax, and resolve any discrepancies before applying.

3. Negotiate Dealer Finance
Dealerships may have manufacturer-backed offers or incentives on certain Hyundai models, especially new plate releases (March and September). Ask about deposit contributions, 0% APR deals, or free servicing.

4. Consider Deposit Size
A larger deposit reduces your monthly payments and can lower your interest rate. Aim for at least 10%, but more is better if you can afford it.

5. Timing is Key
End-of-quarter sales targets, new model launches, and registration plate changes are prime times for securing discounts or enhanced finance terms. Monitoring Hyundai promotions can pay dividends.

6. Read the Small Print
Always check for excess mileage charges, early settlement fees, or restrictions on vehicle modifications—especially with PCP and leasing.

Tip: Use phrases like “best Hyundai car finance deals UK” or “compare Hyundai PCP offers” when searching online to access the widest range of current deals.

Eligibility & Credit Check Tips

When applying for Hyundai car finance, lenders will consider several factors:

• Income and Employment: Stable employment and a regular income are viewed favourably.

• Affordability: Lenders assess your monthly outgoings to ensure you can manage repayments comfortably.

• Credit History: A good credit score increases your chances of approval and unlocks better rates. However, even with poor credit, options are available.

• Deposit: A higher deposit can offset weaker credit or income.

Most finance providers will run a credit check, but some brokers—such as Kandoo—offer ‘soft search’ tools that don’t affect your credit score. This can be reassuring if you’re concerned about multiple applications.

Even if you have bad credit, Kandoo can help match you with lenders who may still approve your application. It’s worth gathering all necessary documents (proof of income, address, ID) in advance to speed up the process.

Example Finance Scenarios

Let’s consider a practical example:

You’re buying a 3-year-old Hyundai Tucson for £20,000.

Figures are indicative and subject to credit status and lender terms.

With PCP, your monthly payments are lower, but you’ll need to pay a larger sum (£8,000) at the end if you want to keep the car. HP payments are higher but you own the Tucson outright after the final payment. Leasing offers fixed monthly costs with the car simply returned at contract end.

Common Questions About Hyundai Finance

Can I get 0% APR on a Hyundai?

Occasionally, Hyundai dealers offer 0% APR finance on selected new models, particularly during promotions or end-of-year sales. However, eligibility criteria are strict and a larger deposit may be required.

Is it cheaper to lease or finance a Hyundai?

Leasing can offer lower monthly payments and includes road tax and sometimes servicing, but you never own the car. PCP and HP typically cost more each month but offer the option of ownership. The cheapest route depends on how long you plan to keep the vehicle and your annual mileage.

Can I get Hyundai finance with bad credit?

Yes. While mainstream lenders may decline applicants with poor credit, specialist brokers like Kandoo work with lenders who consider a wider range of credit histories. Expect higher interest rates and consider a higher deposit to improve your chances.

Can I refinance my current Hyundai?

If you already have a finance agreement, refinancing may reduce your monthly payments or consolidate debt. Check if your current agreement includes early settlement fees and compare offers from multiple lenders before making a decision.

How Kandoo Can Help

At Kandoo, we work with a panel of trusted UK lenders to help you find the best Hyundai finance deals—quickly, securely, and with no impact on your credit score. Whether you’re considering PCP, HP, or a personal loan, our online platform allows you to compare offers tailored to your needs and budget.

You’ll benefit from expert support, transparent information, and the peace of mind that comes from working with a regulated UK finance broker. Even if you have less-than-perfect credit, we can help match you to lenders willing to consider your application.

Compare Hyundai finance deals now →