Can I Give My Car Back to the Finance Company?

Set of car keys

We get it, things change. Whether your car no longer suits your lifestyle or you’re struggling to stay on top of monthly payments, there are many different reasons why you might be asking “can I give my car back to the finance company?” The answer will depend on the type of contract you’ve taken out, as well as other factors like how much of your loan has been paid off.

Below, we take a closer look at this scenario and answer all your questions about whether you can give your car back to the finance company.

Common scenarios where motorists return cars

Life doesn’t always work out how we plan it. Whether it’s finances or personal circumstances, things can change at the drop of a hat. With car finance deals lasting several years, those changes may well impact your affordability or the suitability of your car.

For one, your financial circumstances may have changed, and you can no longer commit to monthly repayments on your vehicle. This may happen for all kinds of reasons, from switching jobs or changing careers to absorbing additional expenses like purchasing a house or welcoming a baby to the family.

Alternatively, your personal circumstances might have changed, and your current vehicle no longer suits your lifestyle. For example, you may have purchased a compact Fiat 500 on a three-year PCP loan but find that two years later, it’s far too small to accommodate your new mountain biking hobby or pet dog. 

What to do when car finance isn’t working out

If finances are the reason you want to cancel your car loan contract, the first step is to talk to your finance provider. It’s best to do this as soon as possible and honesty is always the best policy. Defaulting on your payments could not only incur extra charges but leave a black mark on your credit score, which could affect your eligibility to take out loans in the future.

Many lenders are happy to chat about your options and come up with a solution, especially if your financial difficulties are temporary. This could include deferring payments for a few months or extending the period of the loan to bring down your monthly repayments. Contrary to popular belief, most lenders don’t want to squeeze you dry and are keen to help you stay in the driver’s seat as long as possible, if it’s what you want.

If you can’t find a solution or you simply want to hand back the car, you’ll need to consider what type of finance contract you have. Read on for a closer look at the different types of car finance available in the UK and which ones offer the option of returning the vehicle.

Personal Contract Purchase (PCP)

Can I give my car back to the finance company with a PCP loan? If you financed your car with a Personal Contract Purchase loan and you’ve already paid off at least 50% of the amount owing, you can hand it back to the lender. Keep in mind that this 50% figure also includes fees and interest. This option is known as voluntary termination and will be written into your PCP contract.

If you haven’t paid off 50% of the loan, you’ll need to top up the balance before you have the option to return the vehicle. Unfortunately, if you’ve paid off more than 50% of the loan you won’t receive a refund. Ideally, you should try to return your car as close to the 50% mark as possible to avoid unnecessary payments. Of course, damage that exceeds everyday wear and tear can result in additional charges. You’ll also need to meet any mileage terms and conditions you agreed to.

Hire Purchase (HP)

Hire Purchase contracts are very similar to PCP loans and usually make it relatively easy to return the vehicle, so long as you’ve paid at least 50% of the amount owing. Under UK law, HP contracts are also eligible for voluntary termination which keeps your options open. It’s part of the Consumer Credit Act 1974, Section 99, which clearly states:

“At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.”

While it’s likely voluntary termination will appear on your credit history, it won’t affect your score as long as you meet the 50% repayment requirement and don’t default on any additional fees or charges.

Want to know more? Don’t miss our complete guide to voluntary termination for car finance where we dive into this option in more detail.

Personal Contract Hire (PCH)

If you’ve purchased a car on a PCH loan the process of returning the vehicle can be a little more complicated. Most lenders will ask you to pay off the remaining balance in full, which can make for an expensive lump sum. So, can I give my car back to the finance company with a PCH loan? Yes, however, you may be in for some hefty fees. It’s best to contact your finance company directly and discuss solutions like deferring payments or extending the period of the loan before opting to return the vehicle.

Need to return your car?

Whether you want to know more about solutions like deferring your payments or have made up your mind and are ready to get the ball rolling on cancelling your car loan contract ASAP, My Car Credit is here to help. If you have a finance deal with us, you can call us on 01246 458 810 or email enquiries@mycarcredit.co.uk for any queries.

Or, perhaps you’re in the process of researching car loans and simply want to know more about your options when it comes to returning financed cars. If this is the case, our car loan affordability calculator is a great resource to help you decide what you can afford.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Is there VAT on Used Cars in the UK?

Woman driving in a used car

When you’re buying a car, VAT can add a hefty extra price tag, charged at a standard rate of 20% for new cars. So, if it’s a second-hand car in your sights, you might want to know ‘is there VAT on used cars in the UK?’ The answer to this question will vary depending on how the car is purchased. Read on to learn more.

Eligibility: is there VAT on used cars in the UK?

Ultimately, this will depend on how you buy your car. Firstly, if you purchase your used car from a private seller, then there will be no VAT to pay.

However, if you buy your used car through a car dealer, then whether or not you are charged will depend on how the dealership handles VAT. For this, there are two potential methods. If you’re wondering ‘is there VAT on used cars in the UK?’, then it’s important to understand the difference between these…

Second-hand margin scheme

This is the method used by the majority of car dealerships and involves only charging VAT on the profits made from the sale of the car. The rate charged will be 1/6th of the profit margin.

This VAT will be factored into the price of the car, rather than being recorded as a separate charge on the invoice.

VAT on the full selling price

In some cases, the dealer may charge VAT on the full selling price, which will naturally be more costly. However, this method is rarely used due to higher tax charges.

According to This is Money, both of these methods are completely legal, and you should remain aware that car dealers are under no legal obligation to inform you at the outset of the method they use to record VAT. So, due to the potential increase in costs, you should discuss the VAT method with the dealership before making a decision about whether to buy.

Spread the cost of your car

Whether it’s VAT or just the rising prices of used cars, the cost of your new ride doesn’t have to keep you awake at night! Try our car loan approval calculator to discover how much car finance you could be eligible for. It’s a quick and easy way to spread the cost of your new or new-to-you car.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Can I Buy a Car with a Debit Card?

Person buying a car using their debit card

If you’ve found your dream car, have enough savings in the bank, and haven’t yet considered looking at your different car finance options, you may want to seal the deal immediately by paying with a debit card.

However, whilst this may sound like the easiest method of buying a car, it might actually come with some complications.

Can you buy a car with a debit card?

Technically, yes, you can buy a car with a debit card. Buying a car with a debit card may be advantageous for you, provided you have enough cash in your account when you make the payment. Be sure that your bank doesn’t have a cap on the card’s daily spending limit, too.

That said, it’s not quite that simple. Some dealers simply won’t accept payment via debit card. There are a number of reasons why this could be the case. Firstly, there are fees that come with this process which can result in dealers losing net profit on a sale.

Secondly, debit card payments are riskier for them. If you, the buyer, dispute the sale for whatever reason, this can cost the dealer money – particularly if you only dispute the sale once you’ve driven the vehicle, which means that it can’t then be re-sold at its initial price.

Debit card vs finance

If you do intend to pay for your vehicle with a debit card, be sure to check that the dealer accepts this payment method prior to entering any negotiation. However, most drivers will benefit from car finance as an alternative to spread the cost of a new car. Get a car finance quote today for a better idea of your budget.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Advantages and Disadvantages of PCP Car Finance

Man using ipad

Roughly nine in 10 of all new cars sold in the UK are purchased using finance, with personal contract purchase (PCP) loans accounting for a significant portion of sales, according to the latest data from the Finance and Leasing Association (FLA). With attractive interest rates, long repayment terms and the opportunity to get behind the wheel of your dream car faster, it’s no surprise PCP is one of the most popular car finance options in the UK.

Of course, it’s important to factor in your unique situation and develop an in-depth understanding of PCP loans before you commit. This guide is designed to help you understand all the advantages and disadvantages of PCP car finance. Armed with knowledge, you’ll be able to make an informed and educated decision about whether a PCP loan is right for you.

What is a PCP loan?

Before we get stuck into the advantages and disadvantages of PCP car finance, let’s take a moment to define what personal contract purchase means. The term describes a type of loan that sees you put down an initial deposit on a car (although there are no-deposit options), and then continue to make repayments.

It builds on the concept of hire purchase agreements and includes the option to purchase the car outright at the end of the loan. The main difference is that the final resale value of the vehicle is calculated at the beginning of the loan. This figure is known as the Guaranteed Minimum Future Value (GMFV) and is assessed using several factors, including the age of the car at the end of the loan, and expected mileage.

Most PCP loans start with a deposit of around 10% though this can vary depending on the lender, your credit rating and the unique terms and conditions of your contract. After making an initial deposit you’ll continue to pay monthly instalments plus interest over the lifetime of the loan. Most PCP loans span for two to four years – though again, this can vary.

When your loan ends and all instalments have been paid, you have the option to purchase the vehicle outright by making a balloon payment. The value of the balloon payment is calculated using the GMFV agreed on at the beginning of the loan. Alternatively, you can choose to return the car and start another PCP loan, which gets you behind the wheel of a new model. If the vehicle is worth less than the GMFV, you will need to pay the difference when returning the car.

Now you know more about the specifics of personal contract purchase, let’s take a look at the advantages and disadvantages of PCP car finance.

Advantages of PCP car finance:

  • Upgrade to a new car frequently

PCP loans usually span for two to four years and offer the option to roll on to a new contract after the final instalment has been made. Many motorists choose this option as it’s an easy and affordable way to regularly upgrade your car.

  • Low fixed monthly payments

The fixed monthly payments of PCP loans are generally lower than hire purchase (HP) contracts. This makes PCP loans an attractive option if you’re on a strict monthly budget.

  • Affordable deposits

As well as low fixed monthly payments, PCP loans require small deposits, often as low as 10%. Our car loan affordability calculator makes it easy to get an idea of how far your deposit will go.

  • Flexible options

Flexibility is one of the biggest advantages of PCP loans. Depending on the GMFV agreed on at the start of your loan, you can choose to roll over to a new PCP loan, make a balloon payment to own the car outright or simply hand back the keys with no more to pay. If you love the idea of flexibility and aren’t sure if you want to keep the car or return it at the end of the contract, PCP loans are a great option.

  • Finance secured against the car

Unlike other finance options, PCP loans are secured against the value of the car. This means you don’t have to rely on other assets like a home or cash investments.

  • Stretch your budget

With deposits as low as 10% and affordable monthly repayments, PCP loans stretch your budget much further than if you were to purchase a car with cash alone. This allows you to expand your search and consider cars that are newer or higher spec. In the long run, this can unlock big savings. For example, a PCP loan may mean you can afford a car with better mileage, which will significantly reduce your petrol expenses. Similarly, upgrading to a newer car with a PCP loan can slash maintenance and servicing costs.

Disadvantages of PCP car finance:

  • Capped mileage

Most PCP loans feature mileage caps written into the contract. This is because mileage can have a big impact on the value of a car. If you exceed the mileage cap used to calculate the GMFV at the start of your loan you could face extra charges. These may be applied whether you choose to return the car or purchase it via a balloon payment. Excess mileage penalties can be expensive and add a significant percentage to the total cost of your loan. To avoid nasty surprises at the end of your loan, it’s important to be realistic about your expected mileage when calculating GMFV.

  • Limits on wear and tear

Normal wear and tear is fine but if you plan to put your car through its paces on 4WD tracks or transport muddy pets on a regular basis, PCP loans can be a little restricting. Any damage that exceeds normal wear and tear can also see charges added to your final instalment or balloon payment.

Find out more about PCP car finance

Considering PCP car finance for your next ride? Our experienced team is always available to talk you through the advantages and disadvantages of PCP car finance. Get in touch by email or give us a call on 01246 458 810 to find out more.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

What are the Advantages and Disadvantages of Financing a Car?

Car by the side of the road

Hurdles like the global semiconductor chip shortage and economic instability haven’t shackled the consumer car finance market, with the latest data from the Finance and Leasing Association (FLA) revealing more than 2 million cars were purchased using finance options like personal contract purchase (PCP) and personal contract hire (PCH) in 2021.

Over the year, FLA lenders distributed more than £37 billion in car finance loans, helping Brits get behind the wheels of everything from the latest Teslas to second-hand Minis.

Of course, like any loan it’s important to have a good understanding of exactly what you’re committing to when taking out car finance. This means taking the time to understand the advantages and disadvantages of financing a car. Want to know more? Read on as we answer all your questions about the advantages and disadvantages of financing a car, with a goal to help you make educated decisions.

Advantages of financing a car

  • You can stretch your budget further

When considering the advantages and disadvantages of financing a car, budget is one of the biggest factors. Instead of scraping together cash to purchase a car outright, car finance options such as PCP and PCH allow you to stretch your budget much further. Initial deposits can be as low as 10% (with plenty of no-deposit options too) and allow you to spread out the rest of your loan over a period of two to four years, sometimes longer.

  • Fixed monthly payments

Most car finance loans include fixed monthly payments which make budgeting easy. You’ll know exactly how much will be coming out your bank account each month, making it easy to stay on top of your loan.

  • Options for every credit score

Unlike mortgages and credit cards, car finance is available to most Brits. Even if your credit score is less than ideal, it’s still possible to secure loans with great terms, conditions, and interest rates. Find out more in our complete guide to car finance with a poor credit rating.

Disadvantages of financing a car

  • You may be subject to mileage limits

Car finance loans often include mileage caps which can restrict how you use your car. These are common with PCP agreements, where you have the option to return the car to the lender at the end of the loan. If you want total freedom when it comes to mileage, car finance options like hire purchase (HP) can be a good alternative.

  • You don’t necessarily own the car outright

Many car finance loans use the vehicle as security, meaning you don’t own the car outright until you’ve paid all instalments. You may also need to settle extra costs such as balloon payments or penalties for extra mileage. For many motorists, this is one of the biggest disadvantages of financing a car.

  • Excess wear and tear can result in penalties

As well as penalties for exceeding your mileage limit, some car finance loans will add fees for wear and tear. Everyday wear and tear is fine but anything abnormal can incur fees. This can include anything from dents and scratches to ripped seat covers.

Tips for securing the best type of car finance

No matter what type of car you’re in the market for or the state of your finances, it’s important to understand a few key points when researching the advantages and disadvantages of financing a car.

APR

First, you’ll need to understand annual percentage rate (APR). This is the interest rate you’ll pay over the lifetime of the loan. APR can vary significantly between lenders and is also impacted by factors like your credit score and deposit. Without a good rate, APR can be one of the biggest disadvantages of financing a car. That’s why it’s so important to shop around for the best deals!

Hidden fees

As a borrower, it’s your responsibility to gain a complete understanding of all fees and charges associated with your loan. Most lenders are relatively transparent, but it always pays to ask questions and do your homework. This is the best way to sign on the dotted line with confidence and ensure you don’t encounter any unwelcome surprises down the line.

Keep the big picture in mind

Rock bottom interest rates and ultra-low monthly payments are tempting but it’s important to keep the big picture in mind when it comes to car finance. Use variables like APR and repayment terms to calculate the total cost of your loan and paint a long-term picture of the advantages and disadvantages of financing a car. Generally, longer loans mean you’ll rack up more interest and ultimately, pay more for your car.

Ask for extras

If you don’t ask, you don’t get! For example, it’s not unusual for dealers to throw in free servicing for 12 months or extras like leather seats, roof racks or an upgraded sound system when selling new cars. Similarly, just because you’re purchasing a car on finance doesn’t mean you can’t push for a discount on the advertised price of the car. Of course, there are no guarantees but if you approach the situation with a smile and a good attitude, chances are it’ll pay off.

Enlist the help of a broker

There’s no shortage of car finance lenders in the UK and like all industries, some are legions better than others. Enlisting the help of a broker can help you sift through the options and secure the best deals.

With access to the largest panel of car finance lenders in the UK, My Car Credit matches you with the best loan based on your unique borrower profile. This personalised approach boosts your chances of success and helps secure you the best type of car finance. Connecting with a broker can also help you understand more about the advantages and disadvantages of financing a car and ultimately, make better choices.

Want to know more about the advantages and disadvantages of financing a car? We’re always available to answer questions via email or give us a call on 01246 458 810 to chat with one of our car credit advisors.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Do ‘We Buy Any Car’ Test Drive Your Car?

Inside a mercedes at we buy any car

If you’re looking for a new set of wheels, you’ll likely have an old vehicle to sell. There are so many ways to sell a car – you can do it privately, enlist the help of a dealer, or use a service like ‘We Buy Any Car’.

This article is here to advise you on what to expect if you choose to book a ‘We Buy Any Car’ appointment.

What you need to sell your car

Whichever way you choose to sell your vehicle, you need to ensure it’s looking its best, and take care that you have all of the relevant documents.

At the very least, you need your MOT certificates, a vehicle log book or V5, and any maintenance bills detailing the car’s service history. If you can provide evidence of insurance cover, this can also indicate that you’ve taken care to maintain your vehicle, which makes it more appealing for potential buyers.

It’s also worth taking the time to thoroughly clean your car prior to listing it on a private site or having a We Buy Any Car agent assess it. We Buy Any Car will reduce the car’s value based on any cosmetic or functional issues, so if you have the time and inclination, fixing any broken items is well worth your time and money. Replacing broken mirrors or cracked lights and buffing up any scratches is a good idea, as is repairing any faults.

Do ‘We Buy Any Car’ test drive your car?

Yes, ‘We Buy Any Car’ will perform a short test drive of your car. They’ll send an agent round to you who will check all of the relevant documentation, as well as conducting a thorough assessment of the car.

The agent is there to check whether the details that you provide about it on your online application match up with the vehicle. If they decide that the initial valuation is incorrect, they will advise on an amended valuation following the inspection.

We Buy Any Car will check the car’s exteriors for any cosmetic issues like scratches or dents. They’ll also check the basic functionalities of the vehicle – its windows, heater, air conditioning, and lights, and ensure that there are no warning lights on the dashboard. It’s best if your interiors are clean, too. They’ll ensure that the engine runs (they don’t purchase cars that don’t start), and check that the steering and brakes work effectively by performing a short test drive.

Once the inspection is over, they’ll advise on their final evaluation. If you’re happy with the price they offer, you can sell your car then and there. If you want to buy another vehicle, this makes you a potential cash buyer, which can unlock advantageous deals.

Buying a new car?

If you’re ready to trade in your car for a newer model, car finance can help you get the best upgrade possible, using the cash from your old car as a deposit. To get a better idea of your budget, get a car loan quote online with My Car Credit. We compare across our extensive network of lenders to find a fair deal, whatever your credit score.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

6 Types of Car Finance in the UK

Car dealership

Car finance is one of the most popular ways to purchase vehicles in the UK, with Brits pouncing on benefits like low interest rates, affordable monthly repayments and flexible terms. While all types of UK car finance are designed to get you behind the wheel of a new car faster, there are some important differences to understand before you commit to a contract. With a good grasp on car finance types in the UK, you can get the most out of your loan and enjoy all the benefits, with zero stress.

1.   Hire Purchase

Hire purchase (HP) is one of the simplest UK car finance types. It allows you to spread the cost of the vehicle over a set period of time, with repayments usually made monthly. At the end of the loan, you’ll own the car outright, with nothing more to pay. Deposits aren’t always required, though they can help reduce your interest rate and monthly repayments.

To calculate the total cost of your loan, simply take the price of the car, minus the deposit and add interest. You may also be liable for administration and transfer rights fees at the end of the loan, which are worth factoring in. Most HP agreements span for between three to five years, although this can vary. Monthly payments are fixed, making it easy to budget and plan around your loan.

2.   Conditional Sale

Similar to hire purchase, conditional sale loans are a great option if you want to own the car at the end of the contract. Payments are a little higher though there are no additional fees at the end of the loan. Deposits are usually 10% of the car’s value and repayment terms can be anywhere from two to six years, allowing for plenty of flexibility.

3.   Personal Contract Purchase

Personal contract purchase (PCP) is one of the most popular types of UK car finance and for good reason. Monthly payments are lower than HP loans, which allows you to consider newer, higher spec vehicles without blowing the budget. You may need to make an initial deposit worth around 10% of the car’s value, and then you’ll continue to make repayments over the lifetime of the loan, usually between two and four years.

When you’ve made your final instalment, you have the option to make a ‘balloon payment’ to gain ownership of the vehicle. Alternatively, you can swap the car for a new model, making PCP loans popular with motorists who covet the latest bells and whistles. 

Most PCP loans require you to estimate your expected annual mileage, which is used to calculate Guaranteed Future Value (GFV). This figure predicts the value of the car at the end of the loan. If you go over your mileage limit you may incur penalties as this reduces GFV.

4.   Personal Loan

Personal loans see you borrow the total amount needed to purchase a car, then pay back the amount in monthly instalments, plus interest. You’ll own the vehicle outright, which makes this option appealing to motorists who want complete freedom when it comes to mileage, wear and tear, customisation and other liberties. You’re also free to sell the car at any time. Borrowers with good credit profiles can generally unlock the best interest rates and loan terms.

5.   Guarantor Loan

For borrowers with bad credit, guarantor loans are one of the most appealing car finance types in the UK. A third party, usually a family member, agrees to ‘guarantee’ the loan and step up if you can’t make repayments. It’s a big responsibility for both you and the guarantor and so shouldn’t be entered into lightly.

6.   Personal Contract Hire (PCH)

Also known as leasing, personal contract hire allows you to rent a vehicle for the lifetime of the agreement. Contracts start with an initial cash deposit followed by monthly payments to cover the cost of the lease. The value of your monthly payments is determined using your expected annual mileage and the length of your lease. This is because both variables play a big role in the value of the vehicle at the end of your contract. 

At the end of the agreement, you return the car to the dealer, with no option to purchase it outright. Most people choose to start a new PCH contract, which gets you the keys to a brand new vehicle. If you love fresh leather seats, cutting-edge technology and that sought-after new car smell, you’ll love PCH loans. You’ll also sidestep depreciation, as well as enjoy perks like breakdown cover, waived road tax and complete coverage under the manufacturer’s warranty. For legions of motorists, the hassle-free nature of PCH makes it one of the most desirable UK car finance types.

Crunching the numbers

Whether you’re attracted to the freedom and flexibility of hire purchase or love the idea of continually upgrading to new vehicles with a PCH contract, it’s important to crunch your numbers before committing to car finance.

Your initial cash deposit isn’t the only factor to consider when asking can I afford to buy a car? Financial factors like your credit score and borrowing history can influence how much lenders are willing to offer. You’ll also need to factor in variables like your preferred loan term and your budget for monthly repayments.

Choosing between car finance types (UK)

With a good understanding of the different types of car finance in the UK, you can choose the best options for your unique situation. It’s always good to have experts on your team, which is where My Car Credit comes in. Armed with a wealth of knowledge and experience, plus access to one of the largest panels of lenders in the UK, we help you narrow down your search and secure the best loan terms and interest rates.

Connect with us via email or give us a call on 01246 458 810 to chat to a team member about UK car finance types.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Can I Buy a Used Car with No Down Payment?

Man on bike applying for car finance

Whether you’re purchasing a new or used car, it’s likely to be expensive. Very few people have the cash available to fund the purchase of a vehicle in its entirety, in which case car finance is an ideal option. As such, you may be wondering, ‘Can I buy a used car with no down payment?’.

There are a number of different car finance options available, from hire purchase (HP) to personal contract purchase (PCP) and personal contract hire (PCH). The most common way to secure car financing without a down payment is via PCP, but it will depend on the provider of your car finance.

This article will look at ways to secure no-deposit car finance, what you can expect from such a deal, and any potential workarounds.

Can you buy a used car with no down payment?

There are ways to secure car finance with no deposit (or ‘down payment’). Whether or not this is available for you will depend on what kind of car finance you’re looking for. Similarly, whether no-deposit finance is most appropriate for you will depend on your personal circumstances.

When you purchase a used car, you’re buying a vehicle that’s value has already depreciated. Any deposit that you need to pay on it will therefore be smaller than it would be where you purchase a new car.

If you opt for no-deposit finance, then you can expect to pay the same amount of money by the end of your car finance terms as you would if you were to make a down payment. That said, the lower your deposit is, the higher your monthly repayments will be. In short, no-deposit finance will end up with you paying higher monthly repayments, which you need to be sure that you can make before entering into the finance deal.

You can also expect to be paying a higher rate of interest if you do not put down a deposit. As a result, you can end up repaying more than what the car was originally worth just through this hike in interest.

It’s also worth bearing in mind that if you are looking for no-deposit finance, your lender will likely only accept you if you have a high credit score. Because you aren’t fronting the money for a down payment, you’re considered higher risk. As such, your credit score will need to demonstrate that you have a track record of making your repayments in a timely and efficient manner. You’ll also likely have to pass affordability tests, which car finance providers conduct in order to ascertain whether or not a borrower is financially able to make their repayments.

As such, whilst it is possible to secure a used car with no down payment, if you can front the money for that deposit when you initially purchase the vehicle, this will lower both your monthly repayments and your interest costs. It can therefore be more beneficial for you in the long run.

Alternative ways to finance your car

There are things that you can do to try and finance your vehicle.

If you can shop around, this will put you in a better place to negotiate. Familiarise yourself with the kinds of terms that you can expect, so that you’re in the most informed position you can be. Similarly, if you shop around for a cheaper car, you won’t need as much for a deposit.

You could also consider asking someone to co-sign your loan. You and the co-signer would need to be aware of the potential risks in entering this agreement, but this might be a way to secure car finance without a down payment.

Alternatively, you could delay the purchase of the car until you have the cash to make the down payment. Any deposit is better than no deposit, and you’ll have likely improved your credit score over that saving period too, which will make you a more attractive candidate for finance in the first instance.

Find out more about used car finance

If you have questions about no-deposit car finance, or want to find out what other deals may be available, you can contact My Car Credit today, or use our car finance calculator to check what kind of terms you can expect.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Can You Pay Monthly for a Used Car?

Woman using calculator

Opting for monthly payments is one of the smartest decisions you can make when purchasing a used car. Many Brits think payment plans are just for new vehicles and as a result, don’t ask “can you pay monthly for a used car?” when shopping for a second-hand ride. This is a big faux pas as car finance offers some fantastic benefits; when done right.

Want to know more? Read on as we answer all your questions about can you pay monthly for a used car.

Scenarios where used car finance steps up

Below, we explore some scenarios where used car finance can step up as a great purchasing option:

You want to stretch your budget

With the latest research from Auto Trader revealing the average cost of purchasing a used car in the UK is whopping £18,000, even second-hand vehicles are out of reach for many Brits. If you think this sounds high, you’re probably not alone. Over the past year, the typical cost of a pre-owned vehicle has increased by around £4,000. Large, family-friendly models are the most coveted, though the drastic price increase of almost 32% has hit all vehicle types.

If you’ve got a healthy deposit but can’t afford to pay the full amount in cash, car finance can help stretch your budget. It’s not about biting off more than you can chew and splurging on a vehicle you can’t afford. Instead, car finance can be a clever alternative to get behind the wheel of a used car within your budget, only faster.

Crunching the numbers is important, so take the time to factor in variables such as your budget, cash deposit, preferred loan term and your credit score, which can affect the interest rates you’re eligible for. Our cost of car finance calculator is a great place to start. 

You want to boost your credit score

Committing to monthly payment plans, such as a car finance loan, can be a great way to boost your credit score. If a big financial move like applying for a mortgage or increasing your credit card limit is on the horizon, car finance can be a great way to improve your reputation as a borrower and prove to lenders that you’re a responsible applicant.

You want to be a competitive buyer

Factors like the global semiconductor chip storage, supply chain issues caused by the pandemic and conflict between Russia and Ukraine have hit the used car market hard. According to Richard Walker from Auto Trader, “the speed in which used cars are selling has also accelerated significantly, with the average car taking 11 days fewer to leave forecourts in February 2022 when compared to the same period last year.”

Demand for used cars is high which means you’ll likely face competition from other buyers. Car finance can help you make a realistic offer on a used car and give dealers the peace of mind that payment is guaranteed.

Understanding loan types for used cars

As a used car buyer, you enjoy the same auto loan options available with new models. These include:

Personal contract purchase (PCP)

PCP loans are one of the most popular ways to pay for used cars. Offered by car dealerships and independent lenders, they allow you to spread out payments for your vehicle over three to five years. You may need to make a cash deposit but options are available without.

Payments are calculated using the price of the car, the interest rate (APR) of your loan and most importantly, the expected depreciation rate of the vehicle. Your lender will calculate a guaranteed minimum future value (GMFV) and at the end of the loan, you’ll have the option to make a ‘balloon payment’ equal to the GMFV to keep the car. Alternatively, you can use the GMFV to fund a new PCP agreement.

Personal contract hire (PCH)

PCH loans are another great way to get into the driver’s seat of a used car faster. Also known as car leasing, you pay a cash deposit, then continue to make monthly payments for the duration of the lease term. Most agreements span for between two and five years, with longer terms translating to lower monthly instalments. At the end of the contract, you’ll give the car back to the dealer.

Hire purchase (HP)

As the name suggests, HP loans see you ‘hire’ a vehicle for a fixed period, usually between one to five years. You may need to make a cash deposit, but no-deposit options are available, then continue to make monthly instalments over the course of the loan. At the end of a HP plan you’ll have the option to take ownership of the car by paying a transfer fee.

Personal loan

If you want to own your car outright, a personal loan can be a good way to boost your budget. A lender will agree to a fixed sum, which you’ll use to purchase a used car. You’ll then repay the loan in monthly instalments, usually spread out over a year or more. Generally, the higher your personal loan, the lower your APR will be.

Can you pay monthly for a used car?

The final verdict on whether you can pay monthly for a used car? Absolutely. Auto finance can be a terrific way to pay for a used car, with different benefits appealing to different buyers.  

Ready to get behind the wheel of your dream used car? Whatever your budget or credit rating, we’re here to help. With access to one of the biggest panels of lenders in the UK, we have the connections to secure you the best possible deals on finance for used vehicles.

You can calculate car finance and apply without impacting your credit score. Alternatively, get in touch by email or give us a call on 01246 458 810 to find out more about how can you pay monthly for a used car.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Is Car Finance a Personal Loan?

Woman sat outside on laptop

When you secure a car on finance, you’re borrowing money in order to pay for your new vehicle. You’ll then repay this loan via a series of pre-agreed monthly instalments.

There are different kinds of car finance that you can secure, and which one is right for you will depend entirely on your circumstances.

The language around loans and finance agreements can be confusing. This article is here to help you differentiate between them and decide what option is best for you.

What are the different types of car finance available?

If you are not a cash buyer, you’ll likely need to get a car finance quote and establish which finance option is best for you.

There are three main types of car finance:

Hire Purchase (HP)

With HP car finance, you’ll have the option of paying an initial deposit followed by a series of pre-determined monthly repayments. Because you will own the car at the end of an HP finance deal, your repayments are likely to be slightly higher than with PCP finance.

Personal Contract Purchase (PCP)

Unlike HP finance, with PCP finance, you don’t own the car at the end of the finance term. Think of it more like a long-term rental. You’ll pay an initial deposit and then a series of monthly repayments. At the end of the deal, you can return the car to the dealer or trade it in for another car. Or you can pay a lump sum in order to own it outright.

Personal Contract Hire (PCH)

The monthly repayments for PCH are lower than either HP or PCP, because you don’t own the car at the end of the finance term and are never its legal owner. You will pay an initial deposit and then return the vehicle to the dealer at the end of the term.

What is a personal loan?

As well as these three main types of car finance, you can secure a personal loan. A personal loan is a loan that allows you to borrow a specific amount of money. They’re available from banks and other lenders, and are unsecured, meaning that you don’t have to put up any other assets (such as your car or your house), in order to secure them. You’ll typically repay a personal loan over a longer period than any of the other finance options, but shorter options are available.

A personal loan can be used to finance a number of things. You can use a personal loan to finance the purchase of a car, but they’re not exclusively designed for this purpose.

If you do choose to use a personal loan to finance a vehicle, you’ll have the advantage of being seen as a ‘cash buyer’ by the dealership. As a result, you shouldn’t face any balloon payment or deposit. It also means that you own the car outright and will be able to sell it as and when you want.

What is a car loan?

A car loan is a type of personal loan and, as its name suggests, it is specifically designed for the purchase of a car (or another vehicle).

As with a personal loan, you will own the car outright with a car loan, and you shouldn’t face a deposit. You just have to budget for the monthly repayments on your car loan.

Is car finance, a personal loan, or a car loan right for you?

Whether a car finance deal, a personal loan, or a car loan is the right option for you will depend upon your circumstances. There are advantages and disadvantages to all three.

There’s also no hard-and-fast rule on which type of finance or loan deal is easier to secure – it will depend on your situation and the lender’s criteria.

With a personal loan and car loan, you own the car, and aren’t subject to any mileage usage. You can also resell the car whenever you want. You just have to ensure that you repay the loan in full and remember not to miss any repayments, which would impact your credit score.

Car finance tends to be more flexible, and you can choose to terminate the agreement early or purchase the car at the end of your term (depending on what option you settle for). That said, you may face mileage or other restrictions on usage.

Get a great car finance deal

If you’ve decided that car finance is the best option for you, My Car Credit is ready and waiting to find you a great deal. We compare finance across our large network of lenders to find deals that are tailored to each buyer’s budget, credit score and other requirements.

You can apply online and get an instant decision on car finance without impacting your credit score. If you have any questions about car finance and personal loans, our team are on hand to talk you through your options, contact us today on enquiries@mycarcredit.co.uk.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!