Figures show that around 80% of new cars and an estimated 28-55% of used cars in the UK are purchased on finance.*


Finance is a great way of affording the car you want, allowing you to spread the cost of purchase over a period of time.


So, what determines your car finance eligibility? We take you through all of the factors that have an influence.



The minimum allowed age of an applicant is 18, the maximum age is 75 (at the beginning of the agreement).



You will need to have been a UK resident for more than 3 years. We cannot accept temporary residents in the UK, but if you’re living in the UK and have an EU driving license, we may still be able to help. We do accept residents of Northern Ireland.


Credit score

A good credit score can mean that you don’t need a deposit and providing a deposit can help those with a poor credit score.


The vehicle

The vehicle you’re looking to finance must be less than 8 years old at start of agreement and 12 at the end. A poor credit history can mean that the age of car may need to be reduced to 10 years at the end of the agreement.


With a Hire Purchase agreement, the usual mileage limit is 100,000 although lenders do have different criteria. There are no limits to monthly mileage unless you’re on a leasing agreement.



You will need to be in stable employment and be able to provide 3 months back statements and payslips.


If you’ve been in your job for less than 3 months, we may be able to help if you have been consistently employed in the past. This will be viewed favourably and may also help to reduce the interest rate that you pay on your loan.


If you are self-employed, it can be more difficult to obtain car finance but it is possible. You can read more about this here.


If you work part-time, you will still have options. You will need to earn minimum income levels and be able to provide 3 months payslips.



If you claim benefits you will need to prove that at least half of your income is from employment.


Accepted benefits as forms of income include Carer’s Allowance, Local Council Tax Support, Disability Living Allowance, Tax Credits, Incapacity Benefit (long term incapacity), Pension Credit, and State Retirement Pension.


If you claim disability benefit, lenders try to be more flexible due to the nature of the benefit and will accept Government funded mobility allowance.



If you are retired, we can still help. Proof of income would need to come from any pension, investment or property rental income.


Many retired applicants are in a good financial position having owned their own homes and built up a good credit history.


Due to the general age of retired applicants, lenders may want to minimise the term of the loan to help share any associated risks.



If you have any questions about whether you’re eligible, give us a shout – we’re here to help!



* Stats from: