What is an SUV used for and who buys one?
SUVs (Sport Utility Vehicles) have become the default choice for a huge slice of UK car buyers, and for several years running have been the best-selling body style on the new and used market. Their appeal comes down to a mix of practical factors: a higher, more commanding driving position, a taller and roomier cabin, generally strong resale values, and — on many models — the option of four-wheel drive for buyers who occasionally need it for towing, rural roads or poor weather. Typical SUV buyers include families wanting more space and visibility than a hatchback, commuters who like the higher seating position in traffic, and drivers stepping up from a smaller car who don't quite need an estate or MPV.
The "SUV" label covers a wide spread of vehicles. At the smaller end are compact crossovers such as the Nissan Qashqai, Ford Puma, Kia Sportage and Renault Captur. In the middle sit family SUVs like the Hyundai Tucson, Skoda Karoq and Volkswagen Tiguan. At the top end are larger, often 4x4-capable models such as the Skoda Kodiaq, Land Rover Discovery and Volvo XC90. Compact and mid-size SUVs make up the bulk of what's financed day to day in the UK; full-size 4x4s are a smaller but well-established part of the used market, particularly among buyers who tow horseboxes, caravans or trailers.
Because SUVs are generally larger and more heavily specified than an equivalent hatchback, they typically carry a higher purchase price on both the new and used market — a like-for-like comparison between a used SUV and a used hatchback of the same age and mileage will usually show the SUV costing noticeably more, even before any options are added. That higher price is one of the main things to plan around when arranging finance.
Financing considerations for SUVs
The biggest practical difference when financing an SUV rather than a standard used car is loan size. A higher purchase price means either a bigger deposit, a higher monthly payment, or a longer agreement term to keep payments manageable — often some combination of all three. It's worth running the numbers through the HP car finance calculator before you start viewing cars, so you have a realistic idea of what the monthly payment looks like for the size and age of SUV you're considering, rather than working it out after you've already found a specific car.
Insurance is the other major variable. SUVs, particularly larger and more powerful ones, tend to sit in a higher insurance group than an equivalent-size hatchback or saloon, partly due to their weight, performance and repair costs. Because insurance is a recurring cost on top of the finance payment, it's sensible to get a quote for the specific model and trim you're considering before committing to a finance agreement — a car that looks affordable on paper can end up costing considerably more each month once insurance is factored in.
On PCP agreements, SUVs have generally held their value reasonably well compared with some other body styles, which can support a competitive optional final payment — though residual values vary widely by make, model, mileage and condition, so this should always be treated as illustrative rather than guaranteed. Whichever finance type you're considering, it's worth using the affordability/settlement calculator to sense-check the deal against your monthly budget, and to understand your position if you need to settle early or change cars later.
FAQ
Q: Are SUVs more expensive to finance than a hatchback?
A: Generally, yes — because SUVs usually cost more to buy, the loan amount (and therefore the monthly payment) tends to be higher for a like-for-like deposit and term, even though the interest rate itself isn't determined by body style.
Q: Does a bigger SUV need a bigger deposit?
A: Not necessarily, but putting down a larger deposit is one of the main ways to bring a large SUV's monthly payments back in line with what you'd pay for a smaller car, since it reduces the amount you're borrowing.
Q: Do 4x4 or off-road-capable SUVs cost more to insure?
A: It varies by specific model, but four-wheel-drive and larger SUVs often sit in a higher insurance group than a front-wheel-drive equivalent, so it's worth checking insurance costs for the exact trim before agreeing finance.
Compare lenders for SUV Car Finance
- Zuto — Zuto is a broker that searches across multiple lenders, useful for buyers comparing options on a pricier vehicle type like an SUV.
- Oodle Finance — Oodle is a direct online lender focused on used cars, relevant given the higher typical price point of a used SUV.