How to Finance a Nissan in the UK

Why People Finance a Nissan

Nissan cars are a familiar sight on UK roads, epitomising reliability, efficiency, and value for money. From the city-friendly Micra to the popular Qashqai and all-electric LEAF, Nissan offers models to suit first-time buyers and families alike. With new models typically priced from £16,000 to over £35,000, many buyers find that financing a Nissan makes ownership more accessible.

Drivers often opt for finance to spread the cost of a new or used Nissan, preserve savings, or access a higher-spec model. Nissan’s appeal, combined with flexible finance options, means buyers can tailor their monthly payments to suit their budgets. In particular, Personal Contract Purchase (PCP) and Hire Purchase (HP) are common choices for those looking to drive a Nissan without paying the full price upfront.

Your Car Finance Options Explained

Deciding how to fund your next Nissan need not be complicated. Here are the main finance routes UK buyers consider:

PCP (Personal Contract Purchase)

• How it works: Pay an initial deposit, followed by monthly payments over 2–4 years. At the end, you can either pay a balloon payment to own the car, hand it back, or part-exchange for a new Nissan.

• Pros: Lower monthly payments; flexibility at end of term; ideal for those who like to change cars regularly.

• Cons: Mileage limits; must keep car in good condition; large final payment if you want to keep the car.

• Example: A Nissan Qashqai PCP deal may offer affordable monthly payments, but expect a higher optional final payment if you want to own the car.

HP (Hire Purchase)

• How it works: Deposit and fixed monthly payments until the car is paid off. Ownership transfers automatically at the end.

• Pros: Simpler structure; no mileage restrictions; own the car at the end.

• Cons: Higher monthly payments than PCP; less flexibility if you want to change cars regularly.

• Example: A Nissan Juke on HP will have higher monthly payments than PCP, but you’ll own the car outright when the agreement ends.

Lease or PCH (Personal Contract Hire)

• How it works: Effectively a long-term rental. You pay a deposit and fixed monthly rental. At the end, simply return the car.

• Pros: Often includes servicing; drive a new Nissan every few years; no worries about resale.

• Cons: Never own the car; excess mileage and condition charges.

• Example: Leasing a Nissan LEAF may provide low hassle motoring with maintenance included.

Personal Loans

• How it works: Borrow from a bank or lender, buy the Nissan outright, and repay the loan monthly.

• Pros: Own the car from day one; no mileage limits; can sell anytime.

• Cons: Requires good credit; potentially higher interest rates than secured car finance.

How to Get the Best Deal on a Nissan

Securing the best Nissan car finance deals in the UK requires careful research and a strategic approach. Here’s how to maximise your chances:

• Compare Lenders & Brokers: Don’t just accept the dealer’s first offer. Use online brokers like Kandoo to compare Nissan PCP offers and HP rates from multiple lenders. This increases your chances of finding a competitive deal tailored to your needs.

• Check Your Credit Score: Lenders offer their best rates to those with strong credit profiles. Check your score with Experian or Equifax before applying. If your score is low, consider steps to improve it before seeking finance.

• Negotiate Dealer Finance: Dealers can sometimes adjust their finance offers, especially if you’re prepared to haggle. Ask about deposit contributions, reduced APRs, or free servicing packages.

• Deposit Size Tips: A larger deposit usually leads to lower monthly payments and better acceptance rates. Aim for at least 10% of the car’s price if you can.

• Timing Your Purchase: Look out for end-of-quarter or end-of-year promotions, as dealers may be keen to hit sales targets. New registration plate months (March and September) can also bring attractive Nissan finance incentives.

• Natural Search Phrases: Use search terms like “best Nissan car finance deals UK” and “compare Nissan PCP offers” to uncover the latest promotions and broker deals online.

• Consider Nearly New or Approved Used: Financing a nearly new or approved used Nissan can offer significant savings over brand-new models, often with similar finance options available.

Tip: Always read the small print, especially regarding final payments, mileage limits, and early settlement fees.

Eligibility & Credit Check Tips

When applying for Nissan finance, lenders typically assess:

• Income & Employment: Stable employment or regular income demonstrates your ability to afford repayments.

• Affordability: Lenders review your monthly outgoings to ensure finance is manageable and responsible.

• Credit File: Your credit history, including previous loans and payments, plays a significant role in approval and the rates offered.

If you have a less-than-perfect credit rating, don’t be discouraged. Many UK lenders specialise in bad credit car finance and consider factors beyond just your credit score.

“Even if you have bad credit, Kandoo can help match you with lenders who may still approve your application.”

What can you do to boost your eligibility?

• Ensure you’re on the electoral roll

• Reduce existing debts

• Avoid multiple simultaneous finance applications

• Have proof of income and address ready

Example Finance Scenarios

Let’s illustrate what Nissan finance might look like with a realistic scenario:

Scenario: Buying a 3-year-old Nissan Qashqai for £18,000.

PCP: Lower monthly payments (£229), but a higher balloon payment (£7,000) if you want to own the car at the end.

HP: Higher monthly payments (£474), but you own the car outright after 36 months with no large final payment.

Exact figures depend on APR, your credit rating, and current lender offers.

Common Questions About Nissan Finance

Can I get 0% APR on a Nissan?

0% APR finance deals are occasionally available on selected new Nissan models, particularly during promotional events. These offers are typically limited to specific cars and require a larger deposit. Always review the terms carefully, as other charges may apply.

Is it cheaper to lease or finance a Nissan?

Leasing (PCH) usually has lower monthly payments than PCP or HP, as you’re not building equity in the car. However, you never own the vehicle. Financing (PCP or HP) makes more sense if you want to keep the car or avoid mileage restrictions. The best option depends on your usage and ownership preferences.

Can I get Nissan finance with bad credit?

Yes, although you may face higher interest rates and need a larger deposit. Specialist lenders and brokers like Kandoo work with applicants across the credit spectrum to help secure Nissan car finance, even with past credit issues.

Can I refinance my current Nissan?

It’s possible to refinance your existing Nissan finance agreement to reduce monthly payments or take advantage of lower rates. This can be done by switching to a new lender or restructuring your current agreement. Always check for early settlement fees and compare the total cost before proceeding.

How Kandoo Can Help

At Kandoo, we work with a panel of trusted UK lenders to help you find the best Nissan finance deals — quickly, securely, and with no impact on your credit score. Whether you’re looking for PCP, HP, or a personal loan, our simple application process matches you to competitive offers tailored to your circumstances.

Ready to drive your next Nissan? Compare Nissan finance deals now →