Car finance: what is Just Add Fuel?

  • Packaged deals include servicing, car tax and insurance
  • Simplifies running a car, making monthly budgeting easier
  • All motoring costs covered in monthly payment except fuel

Running a car and remembering when insurance, car tax, servicing and other bills are due – and budgeting for these – can be a real headache. If you’d rather park the stress and bundle everything into one monthly payment – along with the cost of the car itself – this is now an option.

Pioneering this type of finance scheme is Peugeot with its “Just Add Fuel” setup. While PCP car finance simplifies paying for a brand new car, Just Add Fuel goes one step further by throwing in all other motoring costs – bar fuel, as you’d expect – for a slightly higher monthly payment.

Read our PCP car finance guide to see whether this is the best finance option for you.

What do I get with Just Add Fuel?

Peugeot’s Just Add Fuel, along with Citroen and DS’s SimplyDrive scheme includes practically everything you’ll need to pay for when running a new car. Monthly payments cover the following:

  • Car finance costs
  • Car tax
  • Routine servicing
  • Insurance
  • Roadside assistance

Wear-and-tear items such as tyres and windscreen wipers, however, are not included, so you’ll want to make sure you save a little cash to cover any unexpected costs – such as having to buy a new tyre if you pick up a puncture.

Are packaged finance deals good value?

If convenience is important to you, a Just Add Fuel-style scheme could be the right one for you. It is still worth comparing how much you’ll pay in total compared with paying for the extras yourself, though, if you’re after the best-value option.

Remember that many new cars slot into the free road tax band, with a large proportion of the others costing just £20 or £30 per year to tax – so having car tax included is often not a big cost benefit.

Servicing deals are often available on a pay-monthly basis too – even for cash buyers. As a result, you can compare the monthly cost added in a packaged deal – as this is typically shown as an additional monthly cost – with the price of a standalone service plan.

Meanwhile, many manufacturers throw in free insurance or servicing into some of their standard PCP deals – which can be extremely good value, thanks to low interest rates, big discounts and several extras included.

As a result, it’s worth comparing the best PCP deals with top packaged deals to see the difference in total monthly price and make your mind up on which set-up works better for you.

What about Personal Contract Hire/Leasing?

If you like the idea of condensing your car costs into one monthly payment and don’t feel the need to own your car, leasing a car might work better for you.

Car tax is included in Personal Contract Hire payments, while many schemes include servicing too. You will have to pay for insurance separately, however.

Looking to find out more about car insurance? Take a look at the articles below:

First car lease heroes from £76 per month

Car finance: how to choose between PCP and Hire Purchase

What is Personal Contract Hire/Leasing?

Top cars for less than £300 per month

Should I get car finance? Six questions to ask yourself