Best Just Add Fuel deals
One single payment covers your car, insurance, servicing and breakdown cover: the best hassle-free Just Add Fuel deals
A Just Add Fuel deal could be a great way for you to pay for your next car if you're trying to simplify your finances. The idea is that you consolidate the majority of expense that comes from driving a car into a single monthly payment, allowing for a predictable and convenient way to pay for your running costs.
Much like the various car finance options available, Just Add Fuel is a great way to bypass the need to shell out thousands of pounds in cash to buy a new car. You can split that one large cost into smaller and more affordable chunks, but where car finance generally only covers the cost of the car itself; a Just Add Fuel deal includes a whole load else besides.
The payments for these special deals can also include car insurance, road tax, servicing and breakdown cover, so you'll have everything you need to drive the car paid for in one easy step. This makes your own admin much simpler, rather than having to shop around for the best insurance quote and fill in tax forms, all you have to do is make sure you can pay your monthly bill.
There are some drawbacks to Just Add Fuel, though. Just like with standard car finance, you won't be the registered owner of the car while you're completing the monthly payments, you'll technically be borrowing the car from the dealer or finance company. In some cases, such as with Peugeot Just Add Fuel, you can opt to buy the car outright once all of your payments are made, by paying what's called the balloon payment, or optional final payment.
If, however, convenience and simplicity are your main goals when it comes to your next car purchase, a Just Add Fuel deal is about as straightforward as it gets. Read on for more details on the various options available now.
The best Just Add Fuel deals
Just Add Fuel deals are only available for brand-new cars and are growing in popularity because of their affordable monthly costs and their hassle-free nature. Most are available to drivers from the age of 18, but under-21s must often use a black box that monitors the quality of their driving.
Peugeot owns the trademark to the Just Add Fuel name, but the phrase is used as a general term for these sorts of deals that are offered by other car manufacturers. Just Add Fuel is available on all models in the Peugeot range, but certain models are limited to older and/or more experienced drivers.
Volvo's Care By Volvo breaks away from the traditional mould that finance plans should last three or so years. The plan can be cancelled with three months' notice, and you can jump into a new car again. Be aware, you pay a premium for this over other types of finance like PCP.
Volkswagen Group's Lease&Care plans are also an attractive proposition if you're after an electric car, with most of the VW ID range and the Skoda Enyaq available with varying plans, offering things like maintenance thrown in.
Used Just Add Fuel Deals:
If you're looking to buy a used or nearly new car, then you won't be able to get a standard offer from the dealer, but you can work towards creating your own used car Just Add Fuel deal, by arranging finance to cover your first year's insurance and tax costs.
Just Add Fuel Deals: finance
Most Just Add Fuel deals are based on Personal Contract Purchase (PCP) finance. With PCP you get low monthly payments as these only cover the difference in value between the car's initial price and what it's expected to be worth at the end of the contract. At the end, you can either return the car or make the optional final payment to own it outright.
If the car turns out to be worth more than the optional final payment, you'll also have the option of effectively trading it in for a new one and putting the extra value - known as equity - towards your new finance deal, lowering your monthly payments.
Volvo's scheme, on the other hand, uses a leasing arrangement, which requires you to hand the car back at the end, with no option to buy it outright.
You'll be charged extra under both arrangements if you go over the pre-agreed mileage limit - in the same way that you have to pay more if you exceed your phone’s data allowance. Similarly, if there's any damage beyond 'fair wear and tear' you can expect a bill to put this right.
How Just Add Fuel schemes work
Just Add Fuel: the good
✔ Convenient, predictable, and easy to budget for
✔ Fixed insurance costs (unless circumstances change)
✔ New cars are often more affordable for young drivers
Just Add Fuel: the not-so-good
✘ Can't shop around to find cheaper insurance quotes
✘ Requires no-claims bonus or black box to monitor driving
✘ Restricted to a few manufacturers, on new cars only
How much are Just Add Fuel deals?
Just Add Fuel deals take into considering more variables when calculating prices than regular finance deals, including the driver's age and where they live. We found that a 25-year-old living near Cardiff could get a Peugeot 208 1.2 PureTech 100 EAT8 for £455 per month. With the same terms (£1,000 deposit, 36 months), the same car with a regular PCP plan would cost £384 per month, leaving drivers with £71 per month to figure out their own insurance and so on.
Just Add Fuel deals for new drivers
The cost of insurance for new drivers, and those under the age of 21, means that they are only able to take out Just Add Fuel deals on smaller, less-powerful cars. The most powerful models on the schemes are only available if you’re 30 or over.
The other main requirement to get a deal if you're a new or young driver is a relatively safe driving history, which may include at least two years of no claims discount, a limited number (or no) driving convictions, and limited claim history.
If you can’t prove this, or are under the age of 21, then you may be able to take out a Just Add Fuel deal with a black box fitted to your car to monitor your driving. This is also described as Just Add Fuel Telematics.
The box monitors your speed, how quickly you take corners, and the smoothness of your acceleration and braking. If you’re judged to be regularly driving unsafely, then you’ll be given a warning. If you reach the fourth warning, your insurance will normally be cancelled.
Can I cancel a Just Add Fuel deal early?
Normally, yes, but you’ll need to check the terms and conditions of your deal for any specific restrictions or costs.
You’ll typically be able to reduce your monthly payments by cancelling the insurance, breakdown cover and servicing elements at any point and then make your own arrangements, but you’ll still be liable for the biggest cost - the monthly finance payment - as well as finding the services you've cut elsewhere.
You are normally able to end PCP finance agreements early. If you’re close to the end of the deal and the car is worth more than the remaining balance on the finance, then you may be able to trade it for a newer one without penalty, putting any equity - meaning the value in the car over the remaining debt - towards the deposit on your next car. If not, then you'll need to pay a settlement fee to cover the difference.
Volvo's plan is a little bit different - you can cancel at any point with 3 months' notice.
*Representative PCP finance - Ford Fiesta:
48 monthly payments of £192
Mileage limit: 8,000 per year
Optional final payment to buy car: £2,923
Total amount payable to buy car: £11,926
Total cost of credit: £2,426
Amount borrowed: £9,500
BuyaCar is a credit broker, not a lender. Our rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances.