Buying a car in the UK shold be as simple as buying a car in your home country, paying for the car might be the sticking point as with Expats qualifying for traditional car finance in the UK requires UK credit. On this page we will break down some helpful hints and tips, and explain the various ways to buy a car in the UK as an Expat.
Buying a Car in the UK as an Expat
Is Buying Right For You?
Buying a car in the UK can sometimes offer the best long-term value, but it comes with more responsibility than leasing or renting. On top of this and depending on the vehicle, you need to be aware of depreciation and the upkeep and servicing of the vehicle.
For expats, it’s usually the best option once you have:
- A UK Address
- A better understanding of the system
- Plans to stay longer term
Where to Buy a Car
There are several ways to buy a car in the UK, each offering different levels of convenience, pricing and risk:
Car Dealerships
- Franchised or Independent
- Offers warranties and legal protection
- Servicing and Maintenance Facilities
- Trustworthy and Well Known Brands
Car Supermarkets
- Large Stock of Vehicles that you can touch and feel
- Competitive Pricing compared to Mainstream Dealers
- Easy to compare multiple vehicles
- Tight margins so little to no money off window price
Used Car Dealers
- Variety of stock to view
- Minimum 3 months warranty for peace of mind
- More likely to do a deal
- History of vehicle can be difficult to find
Online Platforms
Online platforms are a great way to filter down your preferences to find the right car for you. Offering vehicles at car dealers, car supermarkets, private sellers and used car dealers all in one place. Many provide history of the vehicles and the specifications.
Online platforms include:
Private Sellers
- Lower Costs
- Higher Risks
- Difficult to check history
- No Warranty
What to check for before buying
These are the essential things to check before you commit to purchasing a car:
Vehicle History
Always check the car’s background before you purchase:
- Outstanding Finance
- Accident History
- Mileage Inconsistencies
- Theft Status
- MOT History
It is important to use a service such as HPI to find out the history of the vehicle.
Documents
- V5C Logbook
- MOT History
- Service Records
Physcial Inspection
- Tyres and Brakes
- Bodywork Condition
- Warning Lights
- Test Drive
If you are purchasing a used car either from a car supermarket, private seller or a used car dealer, you could instruct the AA to provide a Pre-Purchase Inspection for peace of mind.
Financing Your Car
There are quite a few ways to enable you to purchase a car in the UK, as an Expat you may be restricted on the way you can do this due to lack of UK history, but we’re here to explain the differences:
Cash Purchase
When we say ‘CASH’ purchase, due to money laundering regulations, this may actually mean payment via bankers draft, cheque or bank transfer.
- No Interest To Pay
- Full Ownership
- Strong Negotiating Position
- Residual Values Fall With You
- Your in charge of Maintenance & Servicing Costs
Bank Loan
- Spread Payments
- Fixed Monthly Costs
- Value of the car is your responsibility
- Maintaining the car falls down to you
Depending on your individual circumstances, a bank loan might not be possible as an Expat. However, some banks with international status such as Barclays and HSBC, may have a facility to enable the borrowing of monies.
Credit Card
- Spread the cost
- Earn rewards such as Airmiles or Cashback
- Section 75 Protection (Where Applicable)
- Introductory or Promotional Rates may be available
Cards Include:
Watch Out:
- Many dealers limit or refuse card payments
- High processing fees for merchants
- Often only usable for deposits
Dealer Finance
Qualifying for dealer finance as an expat may prove difficult, but let’s have a look at the options that many of the dealerships offer:
PCP (Personal Contract Hire)
- Lower monthly costs
- Favourable APR Rates on New Cars
- Optional Final Payment
- Mileage Restrictions
Hire Purchase (HP)
- Fixed Monthly Payments
- Own The Car At The End
- No Mileage Restrictions
- Sometimes offers of 0% finance on new cars
- Risk of Negative Equity
- Higher Deposits Generally Required
Contract Hire (PCH or BCH)
Contract Hire in the UK is generally know as Car Leasing, please click on the highlighted link to find out more about leasing a car in the UK as an Expat.
- Fixed Monthly Costs
- Optional Maintenance Element Available
- No Worries on Car Worth
- Lower Monthly Payments
- Fixed Contracts with Early Termination Charges
- You Never Own The Vehicle
- Mileage Restrictions
Lease Purchase
- Lower Payments
- Mandatory Final Payment
Summary Table
Option | Ownership | Monthly Cost | Flexibility |
|---|---|---|---|
PCP | Optional | Low | High |
HP | Yes | Medium | Low |
Contract Hire | No | Low | Low |
Lease Purchase | Yes | Medium |
Car Insurance
Car Insurance is mandatory in the United Kingdom for driving and parking on any public roads. The minimum legal limit for car insurance is third-party, which covers damage or injury to others.
Any vehicle uninsured must be registered as SORN (Statutory Off Road Notification).
If you do not have insurance and you are caught driving without the correct cover, you may receive a penalty which includes fines, penalty points and vehicle seizure.
When you’re looking at Car Insurance, we’d recommend comparing quotes on the following websites:
Taxing Your Car
All cars must be taxed before being driven on a UK road, you can do this via the following link:
Be careful of any rogue websites posing as the DVLA, only use the ones that have the url “gov.uk”
How to get the best deal
Here are a few tips to get the best deal on your car purchasing:
New Cars / Supermarket
- Limited Negotiation
- Prices Often Fixed
Used Cars
- More Flexibility
- Better negotiation potential
Top Tips
- Compare Prices
- Don't Rush
- Negotiate Extras
- Buy at Month or Quarter End
Specialist Brokers
If you’re after something a bit special and you’re willing to trust a specialist broker source a particular car for you, then this is the right way to go. Vehicle brokers can look for specific, high-end or classic cars based on your requirements, in return you may pay a premium or a percentage of the price, they are an excellent way to get the vehicle that you want.
Here are a few specialist brokers in the UK:
Lawrence Smith
Lawrence Smith works with clients to source specific or high-end cars, with years of expertise and excellent customer feedback, you can count on this vehicle broker being one of the best in the UK.
- Professionals
- VIP Clients
- Rare Vehicles
Tom Hartley
Tom Hartley is a well know luxury, performance and classic car dealer in Derbyshire. With years of experience and VIP service, for those looking at something special, it should not be missed.
- Classic Cars
- Performance Cars
- Luxury Cars
Portland Cars
Portland Cars offers a range of Luxury, Sports and Prestige cars from its dealership in Doncaster, South Yorkshire. They offer a vehicle sourcing service to help you find the right car at the right price.
- Range of Luxury and Performance Cars in Stock
- Yorkshire Based
- Vehicle Sourcing Service Available
Not Ready To Buy?
Arriving in the UK can be daunting and whilst you may feel that buying a car straightaway is the right choice, it might be worth considering other options that are available to Expats, these include:
Expat Car Leasing
Expat Car Subscriptions
Long-Term Car Rental
Frequently Asked Questions
Can expats buy a car in the UK?
Yes, but you may need a UK address and insurance.
Do I need car insurance?
Yes, it is a illegal to drive a car with out the minimum requirement of third-party insurance. Make sure you look at Car Insurance Comparisons websites to get the best prices on your quotes.
Can I get finance as an Expat?
Getting finance for a vehicle can prove difficult without UK credit history. Their are specialist lenders in the marketplace that can offer this but at higher rates of interest and/or charges. It may be worth speaking to your main bank in your home country to see if they can help with UK borrowing.
Is buying cheaper than leasing?
If you’re buying a car for the long-term, it can work out cheaper but don’t overlook car leasing or car subscriptions as an alternative option.