01 / BEFORE SIGNING
Split one monthly figure into separate decisions
Dealership quotes can combine the vehicle, finance, servicing and several optional products. We recommend rebuilding the deal from the itemised figures.
Cash price, discount and part-exchange shown separately.
Deposit, APR, term, total payable and final payment.
Individual cash price, cover period and financed cost.
The quote shows only one monthly figure, an extra is described as compulsory when it is not, or a product's price and terms are not provided in writing.
02 / FINANCE
Compare the total payable—not only the monthly payment
| Method | How it works | Main advantage | Main risk | Best suited to |
|---|---|---|---|---|
| Cash | Pay the full price without borrowing. | No finance interest and immediate ownership. | Ties up savings and exposes you to depreciation. | Buyers who retain a healthy emergency fund. |
| Personal loan | Borrow separately and pay the dealer as a cash buyer. | You own the car and can compare lenders independently. | The advertised rate may not be the rate offered; the debt is unsecured. | Buyers wanting ownership and flexible sourcing. |
| Hire purchase | Deposit followed by monthly payments; ownership transfers after the final payment and any option fee. | Simple route to ownership without a large balloon payment. | Monthly payments are normally higher than PCP and the car is at risk if payments are missed. | Drivers planning to keep the car. |
| PCP | Deposit and monthly payments, with a large optional final payment if you want to own the car. | Lower monthly payments and several choices at the end. | Mileage, condition and final-payment exposure; low monthly cost can hide a high total. | Drivers changing regularly with predictable mileage. |
| PCH / lease | Long-term rental with an initial payment and fixed rentals; the car is returned. | Clear use period with no plan to own or sell the vehicle. | Early termination can be costly and mileage or damage charges may apply. | Drivers who want use rather than ownership. |
Also compare any manufacturer contribution or discount that is available only with a particular finance product. A low APR deal can still cost more if it removes a larger cash discount.
03 / OPTIONAL PRODUCTS
Our dealership-extras ranking
The price bands below are indicative UK advertised ranges checked in August 2026—not guaranteed nationwide averages. Vehicle value, term and cover limits can change the quote substantially.
| Product | Our recommendation | Indicative comparison | Dealer advantage | Third-party advantage |
|---|---|---|---|---|
| GAP insurance | Compare third party first | Dealer: often around £300–£500 Standalone: commonly £100–£300 for three years | Convenient and arranged with the vehicle. | Usually more choice on cover type, term and claim limit. |
| Paint or ceramic protection | Usually compare a detailer | Dealer packages: often £300–£1,000+ Independent: commonly several hundred pounds; depends heavily on preparation | Applied before collection and may include interior cover. | A specialist can explain decontamination, polishing, coating and aftercare. |
| Tyre and alloy insurance | Depends on wheels and parking | Standalone examples: from about £229; broader market ranges from roughly £50 a year into hundreds | One contact and cover can begin with the car. | Easier to compare claim limits, wheel types, repair rules and total claims. |
| SMART cosmetic repair | Only with usable claim limits | Both routes: quote-led; commonly sold as a multi-year policy | Convenient for lease or PCP return preparation. | You can compare exclusions, panel-size limits and mobile repair access. |
| Extended warranty | Manufacturer cover often strongest | Both routes: model, age and cover dependent | A manufacturer-backed product can give simpler access to the franchised network. | Independent cover can cost less and may allow a wider repair network. |
| Service plan | Dealer if the saving is real | Dealer/manufacturer: model-specific fixed plan | Can fix scheduled servicing prices and spread the cost. | Independent servicing may cost less where warranty-compliant parts and procedures are used. |
| Dashcam | Compare a specialist | Both routes: hardware and installation dependent | Neat installation arranged before handover. | More camera choice and often better value from an auto-electric specialist. |
| Mats, boot liners and cables | Negotiate before buying | Dealer: genuine-accessory pricing Third party: often cheaper | Guaranteed fit and may be included through negotiation. | Much wider choice and easy price comparison. |
04 / GAP INSURANCE
Potentially useful—rarely an automatic dealer purchase
GAP insurance responds after a vehicle is declared a total loss and the comprehensive motor insurer has settled. Different types cover different shortfalls.
Outstanding finance
Designed to cover an eligible difference between the motor insurer's settlement and qualifying outstanding finance.
Original invoice price
Designed to bridge an eligible difference between the motor settlement and the price originally paid.
Replacement cost
Designed around the cost of a replacement vehicle, which can matter if the list price rises.
Compare these before price
- Maximum claim amount and whether it is enough for the vehicle
- Policy term, mileage limit and purchase deadline
- New, used, cash, finance or lease eligibility
- Motor-insurance excess contribution
- Modifications, commercial use and named-driver exclusions
- Cancellation terms and what happens when finance ends early
The FCA introduced a GAP sales deferral process and prescribed information so customers can shop around. Treat that pause as useful comparison time, not as an inconvenience.
05 / PROTECTION PRODUCTS
Judge the preparation and policy—not the product name
Paint protection
Ask exactly how the car will be washed, decontaminated and polished before coating. A premium product applied quickly over imperfect paint can give a poorer result than a modest coating applied by a careful specialist.
- Coating name and expected durability
- Paint correction included or excluded
- Interior fabric or leather treatment
- Warranty inspections and approved shampoo
SMART, tyre and alloy cover
These policies can help drivers with expensive wheels, low-profile tyres, tight parking or strict vehicle-return standards. They are poor value when common damage is excluded or each repair limit is below the likely cost.
- Diamond-cut wheel eligibility
- Repair and replacement limits
- Number of claims and excess
- Damage-reporting deadline
06 / WARRANTY & SERVICING
Manufacturer-backed products can justify the premium
Check what already exists first
A new car already has a manufacturer warranty and UK consumer rights are separate. We would consider extra cover mainly when keeping the vehicle beyond the original warranty and when expensive electrical or mechanical components have meaningful cover.
Compare included work line by line
Ask for the normal pay-as-you-go service prices and total plan price. Check whether brake fluid, filters, inspections, courtesy car, MOT, collection and inflation-linked increases are included.
- Claim limitPer repair, per year and over the whole policy.
- Labour rateWhether it covers the chosen repairer's hourly charge.
- DiagnosticsWhether investigation time is included when no covered fault is found.
- Wear and tearThe definition and any age or mileage restrictions.
- EV componentsBattery, drive unit, charging system, heat pump and high-voltage electronics.
- CancellationRefund rules after sale, early settlement or vehicle disposal.
07 / OUR METHOD
A ten-minute comparison before committing
- 1
Request two quotes. One for the car and finance only; one with every optional product itemised.
- 2
Record the cash and financed cost. A £400 product added to finance costs more when interest is charged.
- 3
Find one external comparison. Use equivalent term, claim limit, excess and cover—not just a cheaper product with weaker terms.
- 4
Check existing cover. The first-year motor policy, breakdown membership, bank account or manufacturer warranty may already duplicate part of an extra.
- 5
Decide away from the sales desk. Optional products do not become better because collection day is approaching.
Buy the car first. Add only the products that cover a risk you understand, at a price that remains worthwhile after comparing the dealer and third-party versions.
COMMON QUESTIONS
Frequently asked questions
Should we buy GAP insurance from the dealership?
We recommend comparing standalone GAP policies before accepting the dealer's product. Independent three-year policies are commonly advertised around £100 to £300, while dealer products can be higher. Compare the type of GAP, claim limit, term, excess contribution, eligibility, exclusions and insurer—not just the price.
Is dealer paint protection worth it?
It can be convenient, but the quality of paint preparation and application matters more than the brand name on the pack. We would normally compare the dealer quote with an established independent detailer and ask both to specify preparation, coating, warranty conditions and aftercare.
Is PCP cheaper than hire purchase?
PCP usually has lower monthly payments because a large optional final payment is left until the end. That does not automatically make it cheaper overall. Compare the deposit, every monthly payment, fees, interest and final payment using the total amount payable.
Should optional products be added to car finance?
Adding an optional product to the agreement can make it feel inexpensive each month, but interest may be charged on it for the full term. Ask for the cash price and financed total for every product separately.
Can we cancel dealer insurance products?
Many regulated insurance products include a cooling-off period, but the exact period, refund method and deductions depend on the policy and when cover started. Read the cancellation section before signing and contact the provider promptly if you change your mind.
SOURCES & FURTHER READING
Check the detail
- MoneyHelper: PCP explained
- MoneyHelper: hire purchase explained
- MoneyHelper: personal contract hire explained
- MoneyHelper: ending car finance early
- FCA: GAP insurance sales and deferral rules
- MoneySavingExpert: GAP insurance guide and typical standalone prices
- GOV.UK: extended warranties and consumer rights
Prices, products, warranties and finance terms change. We show indicative comparisons and link to the current source so you can check before buying.