Best new cars – finance deals for first time buyers

Well done you. If you’re reading this we bet you’ve recently passed your test. And now it’s time to find a car.

Before we dive into the article, we recommend first searching used cars in the UK. Why? If you’ve just passed your test it’s a fair assumption that you might be pretty young, and you may have what finance institutions call a ‘thin’ credit file.

This means you haven’t had much chance to build up a credit score. And a credit score is super important when it comes to finance deals, as an excellent credit score lets lenders know you’re less likely to default on the payments.

Buying a used car and giving yourself a few years to build up a credit score is a good idea. Having an excellent credit score also gains you access to lower APR rates, both from car manufacturers and banks.

But, if you’re a bit older and already have a good credit score, there are plenty of good options out there.

Car finance deals are fickle things and regularly change. Which is why we won’t be going into specifics here.

Below, we’ve highlighted the manufacturers that we’d choose for first time car buyers looking at finance.

Renault

If you’ve been reading up on car finance you’ll know there are three finance hallmarks that nearly all manufacturers buy into. We’re talking about no deposits, 0% APR, and deposit contributions.

Renault dabbles in all three and allows you to use all three at the same time. Strut into a (physical or virtual) showroom and you can drive away without paying a deposit thanks to money off in the form of a deposit contribution. Plus there’s no APR to pay, which means you pay the cash price, even if you spread the cost of the car over 24 months.

Most new drivers will want something cheap to insure, and Renault has the Clio and Zoe that are both reasonable in that department.

Toyota

Toyota has become a byword for reliability thanks to decades of sure-fire car manufacturing. And in the UK, it also offers loads of cracking car deals.

It regularly offers 0% APR on its city car, the Toyota Aygo. Its tiny engine ensures it’s cheap to run and insure. Oh, and it can even come with a 10-year warranty.

MG

MG might conjure images of your Grandad messing around with an old sports car, but in 2022 MGs are made in China, come with all the latest tech, and importantly, some sensible finance deals.

MG regularly runs 0% and low APR deals. The MG 3 supermini is one to choose here as it’s one of the cheapest cars in the UK to insure, although

SEAT

The Spanish company regularly offers 0% APR and deposit contributions. Importantly, there is usually some kind of servicing package too, which can save you hundreds.

Pick of the bunch is the SEAT Ibiza supermini. It’s larger than a city car but is still very reasonable to insure. The company even offers an electric scooter if you’re really after a bargain.