How Do Car Loans Work? A Complete Guide

Woman applying for a car loan online

Brits are no strangers to car loans, with the latest statistics revealing around two million cars are purchased on finance every year. With so many benefits on offer, it’s no surprise so many British motorists embrace car loans.

Of course, like many financial topics, car loans can be a little confusing. Especially if you’re buying your first car or have never taken out a loan before. The good news is, we’re here to help with a complete ‘how do car loans work’ guide.

Read on for everything you need to know about car loans in the UK, including the main benefits of car loans, an intro to industry lingo, some interesting statistics and more.

Car loans: 101

When you look past all the paperwork, car loans are pretty straightforward. Here’s a simple step-by-step how do car loans work guide:

  1. First, you choose the amount you would like to borrow. This number can be calculated by subtracting your cash deposit from the value of the car you would like to purchase. Your car loan will make up the difference and allow you to purchase your chosen vehicle.
  2. Next, you’ll choose the length of your loan term. This determines how long you’ll have to repay the loan. Payments are usually made monthly. A car loan quote calculator can give you a better idea of costs without harming your credit score.
  3. When your loan is approved, the lender will transfer money directly to the approved car dealer you are buying your car from.
  4. After the purchase has been made, you’ll start to pay back loan instalments to your lender, usually on a monthly basis.

The key benefits of car loans

Why do so many Brits choose to take advantage of car loans? Here’s a brief look at the key benefits of auto finance:

Increase your buying power

How do car loans work? Car loans give you the freedom to increase your budget and purchase your preferred vehicle, without having to pay outright.

Get behind the wheel sooner

Car loans boost your budget in a matter of days, allowing you to get behind the wheel sooner instead of spending months or years saving.

Car loan lingo explained

Wrap your head around auto finance with this quick guide to car loan lingo:

Agreement term – the total length of your loan.

APR – short for annual percentage rate. This is the additional amount you’ll pay back, on top of the loan. A good car loan lender should offer APR rates from 6.9%.

PCP – short for personal contract purchase. These types of loans include monthly payments, as well as a balloon payment at the end of the loan if you’d like to own the car outright.

Total repayable – the final balance owning, including the loan itself as well as interest, fees, and other payments.

Average car loan repayments

We know that around two million cars are purchased on finance every year but what about repayment figures? Studies suggest the average British motorist puts £194.80 per month towards car finance payments. After rent and mortgage payments, 65% of motorists say their car is the biggest outgoing expense in their life. Interestingly, men spend a little more with payments averaging £215.70. Women are a little thriftier and spend £173.30.

What about insurance?

You’ll still need to purchase insurance when you take out a car loan, so don’t forget to factor this into your budget. Expect to pay around £53.40 a month for car insurance. Again, men tend to have higher premiums and pay around £64 per month while women average just under £42.

Tips for choosing the right car loan

All car loans are designed to increase your buying power but not all contracts are created equal. When choosing a car loan, it’s important to do your research and learn as much as possible before making a commitment. Here’s some tips to help you understand how do car loans work.

Sign on with a trusted provider

Your car loan experience can vary enormously depending on the provider you sign on with. When shopping around for car loans, trust and transparency should be front of mind. Reading reviews is a great way to get a genuine idea of what your preferred lender is like. You can also look for car finance platforms backed by trusted names. For example, Evolution Funding.

Read the small print

No matter how confident you are in your lender, it’s always advisable to read the small print before signing on the dotted line. You never know what could be hidden in the terms and conditions.

Ask questions

A good lender should be happy to answer all your questions without hesitation, no matter how big or small. Ultimately, asking questions about how car loans work will help give you total peace of mind.

Set up a direct debit for repayments

We get it, life can get busy and sometimes loan repayments can slip your mind. That’s why it’s best to set up direct debits for your loan repayments. This way, you’ll never have to worry about remembering to transfer instalments to your lender. Instead, the money will simply come out of your account each month.

As well as making your car loan experience as streamlined and stress-free as possible, setting up a direct debit will ensure you don’t miss any repayments. This is the last thing you want as missed instalments can have a negative impact on your credit history. This leads on to our next tip – never bite off more than you can chew when it comes to car loans.

Borrow a sensible amount

Before committing to a car loan, it’s important to crunch the numbers and make sure your loan is realistic and manageable. It can be tempting to borrow more to increase your budget but at the end of the day, you need to be able to manage your repayments with minimal stress.

Speak to our car loan experts

Want to know more about how car loans work in the UK? Whether you’re purchasing your first car or looking to upgrade your vehicle, we’re here to help. Get in touch with the My Car Credit team today to find out more about competitive car loans backed by an extensive and varied network of car finance lenders.

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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 Part Exchange a Car on Finance?

Man equiring about part-ex on finance

Getting a new car is exciting, but if you’ve already got a vehicle that you purchased via car finance, it might seem complicated. In theory, part exchanging your financed car is a way of trading in your current car for a new one. Moreover, you can use the value of the old one to support the new purchase. In this post, we’ll explore whether it’s possible.

What is a part exchange?

If you part exchange your financed car, you’re trading it in for a new one, and putting any proceeds from the exchange towards the new purchase. Part exchange will typically be more convenient than a private sale, as the dealer will manage all the paperwork. It’s also a way of changing car without having to either pay off your car finance early or cancel it outright.

Where you’re eligible for part exchange, it can be a great way of finding a new set of wheels. However, not everyone is eligible for a part exchange – it’s contingent on what kind of car finance you have.

Who is eligible for part exchange?

You should be able to part exchange your car if you purchased a car on finance via either a Hire Purchase (HP) deal, Personal Contract Purchase (PCP) deal, or a personal loan. However, if you have financed your car via a PCH agreement, you won’t be eligible, as you are not the car’s legal owner at any point.

If you financed your car via a PCP deal, you can part exchange your car at the end of the finance agreement and put any value toward the new vehicle (or a deposit for the same).

You can also part exchange your car during your agreement – but whether or not this is a good idea depends on how much your car is worth, and how much you still owe. You’ll have to settle any outstanding balance before the part exchange can take place.

How to part exchange a car on finance

Before you think about part exchange, you need to know your car’s value, as well as anything you still owe to your finance plan. The value of your car will be affected by how much you’ve cared for it, but it’s also dependent on the car’s mileage, service history, and specification.

It’s best to go into a part exchange with a car that’s of greater value than any outstanding finance. That means you’re in positive equity. You can then put the positive equity toward the cost of a new vehicle. Furthermore,  remember that if you’re looking to purchase your new car by finance, the higher your deposit payment, the lower your monthly repayments will be.

You’ll need to get a settlement figure from your lender, too. This can sometimes include a final balloon payment and there may also be an early termination fee.

You may find you have a PCP deal that leaves you with a vehicle that’s worth more than your outstanding final payment. This is because you’re borrowing against the depreciation value of the car – not the purchase price. This puts you in a good position for a part exchange, as you’ll be in positive equity, as described above.

Be aware that you’ll also need the car’s logbook – known as its V5C – as well as any relevant paperwork, the vehicle manual, MOT and service documents. You’ll also need to disclose the settlement figure agreed on with your car finance provider.

What about negative equity?

If the amount remaining on your finance is more than the car’s value, then you’re in negative equity. You may still be able to part exchange the car. This would require either you or the company you’re part exchanging the car with to pay a lump sum, rolling any debt into a negative equity finance agreement.

Be aware that with a negative equity finance agreement you will be paying off both your old car and new car, so you will likely notice a serious increase to your monthly repayments. Interest rates will also be higher, and you’re at higher risk of going into further negative equity.

Talk to My Car Credit

If you’ve got questions about whether a part exchange is for you, contact My Car Credit today. We can address any concerns you may have and help you establish your car finance eligibility.

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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!

Why Does Car Financing Take So Long?

Frustrated woman on the phone

Buying a car is a big investment and according to the latest data, more than 90% of Brits take advantage of finance and leasing options when purchasing a new vehicle. They can be a great way to maximise your budget and unlock access to newer and more desirable models without stretching yourself too thin.

While car financing is a popular alternative to purchasing a car outright, it’s doesn’t have the same ‘quicky and easy’ reputation as applying for a new credit card or taking advantage of ‘buy now, pay later’ services like Klarna, Laybuy and Clearpay.

So why does car financing take so long? Securing car financing can take time as there are some important steps that need to be completed before your application is approved. Below, we take a closer look at the car financing process and why it can sometimes take so long.

Why are applicants carefully vetted?

The average motorist spends around £226 per month on car finance payments, allowing them to get behind the wheel of their dream car without laying down an unrealistically high lump sum. However like any lender, car financing companies want to make sure the benefits outweigh the risks when approving applicants.

To do this they carry out credit checks designed to give them an idea of your borrowing habits. While multinational consumer credit reporting company Experian says there’s no ‘magic number’ that will secure you a loan, a ‘good’ score falls between 881 and 960 while an average score sits somewhere between 721 and 880.

Finance & Leasing Association (FLA) 

The car financing industry is strictly regulated to protect both borrowers and lenders. The Finance & Leasing Association is the industry’s leading trade body and is made up of hundreds of members, including banks, independent financial firms and building societies.

Lenders approved by the FLA are subject to stringent protocols, which can slow down the loan application process but ultimately helps to improve the car loan experience for everyone involved.

Despite the challenges presented by issues such as COVID-19 travel restrictions and supply chain disruptions, FLA Director of Research and Chief Economist Geraldine Kilkelly predicts further industry growth over the next year.

“Despite the risks to the economic and market recovery from supply chain disruption, higher inflation and further waves of Covid-19, our latest research suggests that the industry has maintained its optimism about the opportunities for growth,” says Kilkelly. “FLA’s Q4 2021 industry outlook survey shows that 88% of motor finance providers expected new business growth over the next twelve months.”

Compiling your documents

From renewing your driver’s licence to applying for a new passport, most serious applications call for documents and paperwork. Car finance is no exception, with multiple forms, documents and contracts to sign before you get the green light. This includes things like proof of income, proof of address, copies of your driving license and personal bank details. All need to be passed on to your finance lender before you’re approved, which can stretch out the process.

If you’re wondering why does car financing take so long and want to speed up the process, it’s a good idea to prepare in advance and keep all your key documents in an easy to access folder.

Soft vs hard credit checks

One of the best ways to fast-track your car finance application is to kick off the process with a soft credit check. These are quick and easy to run, combing through your financial history without leaving a permanent mark by your name. A soft credit check will give you a good idea of what types of loans and amounts you’re eligible for. Knowing this will help your decision-making process when applying for car loans and boost your chances of approval.

Stay away from hard credit checks, if possible, as these leave a signature on your record. They’re carried out by dedicated credit agencies like Experian and Equifax and dive deep into your financial history. While you’ll probably need to undergo a hard credit check before you’re approved for a loan, this should be the last step and ideally shouldn’t occur more than once. Basically, you only want to go ahead with a hard credit check if you’re certain you’ll be approved.

Speed up the process with My Car Credit

Why does car financing take so long? The truth is it doesn’t have to. With the right people on your team, car financing doesn’t have to be a headache. As part of the largest motor finance broker in the UK, My Car Credit makes finance simple and accessible.

We regularly receive great feedback from our customers about the speed of our service, for example:

“The whole process was very simple. I was assisted by the friendly staff every step of the way. I got a reasonable rate, and it was all terrifically efficient.” Ben B

“Absolutely brilliant, made it very easy and clear and had it sorted and cleared with the car company in no time.” Steven Canning

“Very helpful and extremely quick. Perfect customer service.” Jack Murray

“This was the most efficient and quick process I have experienced. Very helpful, no need to chase, they are always updating you daily – would definitely use again and recommend!” Mrs H

Powered by Evolution Funding, we combine our award-winning technology with access to a broad panel of lenders. This allows us to match you with the best products and lenders for your unique circumstances, improving your chances of acceptance and securing the best possible rates.

It all starts with a car loan quote using our quick and easy finance calculator. When you’ve crunched the numbers and determined your budget, you can get the ball rolling and secure your car financing as fast as possible.

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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!

How to Sell a Financed Car

Woman researching how to sell a car on finance

Car finance is an ever-popular scheme that allows drivers to get behind the wheel without forking out a significant sum of cash. With car finance, you’ll typically be paying out a series of pre-agreed monthly repayments to a lender. Therefore, until you have made all of these repayments, the lender is the vehicle’s legal owner.

There are, however, ways to sell a financed car – but it’s contingent on what type of car finance you have. 

Different types of car finance 

There are four main types of car finance: 

Personal contract purchase (PCP) 

PCP car finance is like a long-term rental. You’ll usually pay an initial deposit and then a series of monthly repayments for a period between two to four years. As a result, at the termination of the agreement, you won’t own the car unless you pay a lump sum to do so. It is also possible to finance this lump sum, or balloon payment. Alternatively, you can either return the car to the dealer or trade it in for another car on PCP. 

Hire Purchase (HP) 

You do own the car at the end of a HP finance deal, and, unlike PCP, this means there’s no balloon payment at the agreement’s end. As such, you’ll initially pay a deposit and a series of monthly repayments that are usually higher than PCP finance. 

Personal Contract Hire (PCH) 

You won’t own the car at the end of PCH finance and are never its legal owner. PCH is a long-term rental – you’ll pay an initial deposit and fixed monthly payments. 

Personal Loans 

As with a personal loan for any purchase, these come from financial institutions and are usually repaid over a longer period than any of the other finance options. In addition, as you are technically a ‘cash buyer’, there’s no balloon payment or deposit.  

Can I sell a financed car? 

You may be able to sell a financed car that has been purchased via three of the above methods of car finance. 

If you have financed your car via a PCH agreement, you will not be able to sell your car. The lender remains the legal owner of the vehicle, and, as such, you are not entitled to sell the car.  

How to sell a car financed by PCP  

You are not the legal owner of the vehicle until you’ve paid off the pre-agreed monthly instalments. That said, you can sell a car that’s been financed by PCP. Be aware that there will likely be early exit fees or what’s known as voluntary termination clauses in your contract.  

You may be eligible for voluntary termination once you’ve paid off 50% of the total finance – and remember that this includes fees and interests. If you haven’t repaid 50%, you can end the agreement early by repaying the difference. Moreover, you can then return the car, which is essentially selling it. From there, you can purchase a new vehicle via alternative car finance. 

Alternatively, you can pay off your PCP agreement early. You’ll need to contact your car finance provider to ask for a settlement figure. Once this is paid off in full, you can then resell the car. If the settlement fee is less than the cost of paying your monthly instalments, this may be the more financially savvy option. 

How to sell a car financed by HP  

As with PCP, you are not the legal owner of the vehicle until all of the monthly repayments are made. Consequently, you’ll need to pay these off before being able to sell the car. 

The voluntary termination clause in your contract will allow you to return the car to the lender once you have repaid 50% of the total car finance. If you’ve paid less than 50%, you can usually still return the car. However, this is as long as you make up any remaining instalments that will take you up to half the vehicle’s value. 

Alternatively, you can pay the agreement off early and then sell the car, as with PCP above. Remember to request a settlement fee from your car finance provider, which you’ll need to pay in full. 

How to sell a car financed by a personal loan  

With a personal loan, you’re the legal owner of the car. Therefore you can sell it whenever you’d like – but remember, you’ll likely owe repayments on the loan that you need to upkeep. 

My Car Credit can help 

If you have questions about how to sell a financed car, the team at My Car Credit can help. We’ll provide guidance on your options depending on your car finance agreement and assist with your car finance eligibility moving forward. 

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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 Through My UK Limited Company?

Man discussing whether he can buy a car through limited company uk

Owning a car that’s been purchased through a UK-based limited company is a viable option for a business. However, it’s worth evaluating whether this is really your best option, or whether there are more suitable alternatives.

Can you buy a car through a UK limited company? 

The short answer is yes. However, there are a number of variables that you need to consider, which include the vehicle type, usage, and its CO2 emissions. 

Benefits in kind  

One of the first things to ask yourself before deciding whether or not to buy a car through your limited company is what that car will be used for. If you are using it for any private use – including the commute to and from work – your company will need to pay a tax called ‘benefit in kind’ (BIK). This is based on the value of the vehicle when it was new. The company will also need to pay Class 1A National Insurance. 

You can only claim back VAT on a car that’s used exclusively for work purposes. Similarly, you may end up being taxed on fuel in addition to the BIK tax.  

It’s also worth noting that having a car through a limited company means putting its day-to-day running costs through company accounts, which may impact profit margins. 

Capital allowances 

If you choose to buy a car through your UK limited company, you’ll be able to claim tax relief through capital allowances. The amount you can claim, however, is dependent on the car’s CO2 emissions. The more CO2 released, the higher the tax you’ll need to pay. 

Financing a car through your limited company 

Car finance is a sensible option if you’re looking to spread the cost of a car when buying through your limited company. Calculate your car loan online or contact our team to talk more about buying a car through your limited company. 

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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!

Should I Get My First Car on Finance?

Woman thinking about getting her first car on finance

“Should I get my first car on finance” is a question many new motorists find themselves asking. If you’re tossing up between whether to purchase your first car outright or take advantage of finance options, this article is for you.

Read on for five reasons why you should finance your first car, as well as some cons to consider.

1. Unlock access to more desirable models

If you’re wondering if you should get your first car on finance, you probably don’t have the cash to pay for a vehicle outright. Buying a car is a big financial commitment. Furthermore, most people can’t afford to lay down thousands of pounds at once. This is where car finance comes in.

Financing your car is a desirable option for new drivers as it allows you to get behind the wheel of a vehicle that would otherwise exceed your budget. Instead of a lump payment, the cost of ownership is spread over a pre-determined timeframe. As a result, you pay small monthly repayments. Bear in mind that car finance isn’t a greenlight to purchase a luxury SUV on a graduate salary. However, it does allow you to expand your horizons and buy a better car without the need for a huge deposit.

2. Enjoy more reliability

As discussed above, car finance allows you to purchase a car that would otherwise be out of your price range. With this comes the luxury of more reliability on the road. If all you can afford outright is a battered Volkswagen Golf with 200,000+ miles on the odometer, chances are you’re going to run into some problems on the road. With the same budget, car finance allows you to upgrade to a newer and more reliable model.

3. Build a good credit score

If you’re just starting to flex your financial muscles, car finance can be a great way to build up your credit score. Bear in mind that you’ll need to be responsible about your monthly payments and commit to a payment plan you can afford. Consequently, signing a car finance contract (and paying it off) is a gold star on your credit score. In the future, this will help you when applying for credit cards, mortgages and other financial commitments.

4. Stretch your insurance budget

New drivers pay some of the highest insurance rates in the UK.  As a result, the average motorist aged 17-24 forks out more than £1,200 a year. As such, new motorists wondering where they’re going to find that extra £100 a month to cover the cost of insurance may well opt for finance on their first car. With car finance, you can spread out the cost of car ownership and avoid draining your bank account to purchase a car outright. This means you’ll still have plenty of cash to cover essentials like car insurance, road tax, fuel, and general maintenance.

5. Hold onto your savings

Should I get my first car on finance? If you want to hold onto your savings and ensure you have funds for a rainy day, the answer is yes. While you may still need to make an initial down payment (but not always), car finance spreads out the total cost of ownership. As a result, you don’t need to spend all your cash, all at once. This leaves you free to pay off your credit card or simply stash your savings in a high-interest account and watch them grow.

The cons to car finance

While car finance is a wonderful thing and comes with a laundry list of benefits, it’s not always for everyone. To balance out the scales, here’s a few reasons why you may not want to purchase your first car on finance.

• Interest payments can add up

Car finance stretches your budget further, but it does mean you’ll pay more for the vehicle due to interest costs. The good news is, with a good car finance team on your side you can keep these costs as low as possible. In many cases, using car finance to purchase a newer vehicle translates to better fuel economy and less trips to the garage. The money you save can be used to cover interest payments, making car finance a great solution for your first set of wheels.

• Risk of repossession

Your car is secured by your finance loan which means if you default on payments, it could be repossessed. While this is an issue for some, most car finance applicants are responsible and have no trouble making payments on time. The key is to pick a car that falls within your long-term budget and only commit to monthly payments you can afford.

Get behind the wheel with car finance today

Ready to get behind the wheel of your first car? Whether you’re a teenager who’s just passed their driving test or an adult in the market for their first vehicle, we’re here to help. With rates starting from just 6.9% APR, we offer some of the most competitive car finance deals in the UK.

Car finance options

Worried about your credit rating? Don’t be. We have access to one of the largest lending panels in the UK. This means we can create tailored finance solutions for motorists with gold-standard credit ratings, as well as those with not-so-perfect scores. If you’re a young driver and your credit rating is still in the works, guarantor finance can be a savvy solution for the responsible borrower. Backed by a family member, this payment plan reduces the risk for the lender and increases the likelihood of an acceptance. It’s just one of many ways we can help you enjoy all the benefits of purchasing your first car on finance.

Give us a call today to find out more about our competitive car finance rates and chat to an advisor about how to get started.

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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!

Who is the Legal Owner of a Car on Finance?

happy man who has become legal owner of car

If you’re thinking about purchasing a car through a finance option, you’re not alone. Around nine out of 10 of the new cars sold in the UK are bought by people who use a finance option. However, there are still some grey areas when it comes to ownership.

More specifically, who is the legal owner of a car on finance? Is it the driver or the dealership? Read on as we provide the answers.

Who is the legal owner of a car on finance?

In truth, the answer is neither you nor the dealership. It’s the lender that provides the money. The person who drives the vehicle and maintains it – AKA you – is known as the Registered Keeper in legal parlance. In other words, you will make the repayments and deal with the day-to-day running of the car, but your name won’t be on the V5.

Is there any difference between the finance options?

Yes, there are, but only when the loan finishes. Both PCP and HP are agreements that require repaying before the V5 is transferred to you. However, something to keep in mind is the final payment regarding PCP. Unless you pay off the balloon repayment, you will not own the vehicle. Where you don’t have the cash or savings, you may have the option of taking out balloon payment finance instead. With Hire Purchase, the last instalment of your loan will clear the balance and make you the legal owner.

Do I have other options?

One thing you can do if you want to be declared the legal owner is to use a bank loan. That way, you pay back the money to the bank, and the vehicle is all yours from the outset. Of course, taking out an unsecured bank loan may not be an option for your circumstances. In addition, you may not find the terms competitive.

Find the right finance deal

At My Car Credit, we help drivers up and down the UK find the finance they need to upgrade their car – and eventually own it outright if preferred. It doesn’t matter whether your budget is small or if you don’t think you qualify, we try to accommodate everyone, including those looking for car finance with poor credit.

To find out more, please contact us on 01246 458 810 to speak to an advisor.

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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 Swap and Change My Car While on Finance?

Woman on phone finding out if she can swap her car on finance

Finance deals are very appealing to modern motorists. Cars aren’t cheap, even when purchased nearly new or used. Sadly, it’s unlikely that you’ll be able to purchase a vehicle outright without coming into a small windfall. Car finance options give you the flexibility to pay for a good motor without accruing a mountain of debt.

However, caveats do apply. For example, you don’t own the car until you’ve paid off what you owe. Therefore, you may wonder, “can I change my car while on finance?”. It’s a savvy question and one you should know the answer to before you commit to a multi-year contract.

Can you swap a car on finance?

The short answer is no, not without settling up with the lender. As the finance payments haven’t been settled, you don’t actually own the car outright just yet. As a result, you need to clear them before you can begin to think about swapping vehicles.

To do that, you’ll need to contact the lender to obtain a car finance settlement figure. This figure is essentially the amount you must pay to end the contract. Once that’s finalised, you can look at the options open to you, three of which are outlined underneath.

What can you do?

There are three methods available to drivers who have a car on finance and want to swap to another deal. They are – pay up, sell your vehicle, or part-exchange with a dealer.

Paying up

Settling up is probably the simplest method if you have the necessary funds. By contacting your lender and clearing the balance, there’s no reason to mess around listing your vehicle and dealing with the admin. The same goes for part-exchanging, too. Of course, the figure could be high depending on how far through your deal you are and how much you have already paid.

Selling your car

Selling the car means you can use the cash to pay off your existing deal. You should receive the current market value of the car, making it easier to make as much profit out of the sale as possible. One issue to keep in mind is the buyer. Some lenders won’t let you sell privately, but they do allow sales to dealerships. In any case, you need to pay off the existing finance agreement first to get your name on the V5.

Part-exchanging

Although it sounds like you’re doing a swap, the reality is that you still need the V5. As a result, it’s impossible to part-ex your existing vehicle without the finance settlement figure. Essentially, part-exchanging means you use any positive equity you have to finance your next deal.

What do I need to do?

There is a selection of essentials. Firstly, you can’t do anything without a valid V5 that’s in your name. Secondly, it’s best to get the car valued so that you understand the figure you’re looking for. Thirdly, working out the equity – positive or negative – will highlight how much you can put down as a deposit on a new PCP or HP agreement.

How we can help

As you can see, taking out car finance doesn’t mean you’re tied to one car if something better comes along. It’s just important that you go about swapping your car on finance in the right way! If you’ve got another car in mind and would like to work out your monthly payments, use our free car loan affordability calculator to do the maths! Alternatively, get in contact to discuss your options on 01246 458 810.

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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!

Where Can I Find the Best Used Car Finance Deals?

Woman looking on phone for best used car finance deals

With the potential to save thousands of pounds, purchasing a used car is one of the best financial decisions you can make. A stellar interest rate on your loan makes the savings even better. Hence, it’s worth shopping around for the best used car finance deals.

Loans can often last for several years. As such, even small variations in interest rates can make a big difference to the total cost of your overall loan. To help you unlock the biggest savings, we’ve put together a guide covering everything you need to know. Including, where to find the best used car finance deals and what to look for when shopping for a lender.

Type of finance on offer

A good lender should offer a variety of finance options. Ideally, this should include personal loans that allow you to own the car outright and sell it if needed. Personal loans are generally the most affordable option in the long term. As such, this makes them one of the most popular choices. Bear in mind, they do require separate agreements to be coordinated before making your purchase.

Hire purchase (HP) loans are another option, requiring an initial deposit and then fixed monthly payments over a predetermined time period. Personal contract purchase (PCP) loans adopt a similar concept, with the loan determined by calculating the difference between the price of the brand-new car and its estimated value when the hire agreement ends. 

Flexible terms

Typically, car finance deals range from between two to seven years. The average loan lasts around six years, though ultimately your deal should be matched to your own unique needs and financial situation. As a rule of thumb, longer payment terms translate to a higher rate over the course of the loan. That said, your monthly payments will be lower as the loan is stretched out. The best used car finance deals should offer flexible terms that work for you, not the other way around.

Freedom to buy from different dealers

Not all lenders are created equal. Therefore, the best used car finance deals will offer you the freedom to buy from a variety of dealers, not just a select few cherry-picked by the lender. Looking for lenders that give you the freedom to shop around for the best used car deals is a guaranteed way to unlock additional savings.

Ease and transparency

Buying a used car should be exciting, not stressful. When shopping for car finance deals it’s worth prioritising lenders that make the process as easy and stress free as possible. Looking for a provider that offers an easy-to-use car finance calculator is a great place to start.

This small but telling feature shows you that they’re dedicated to making your experience as smooth and straightforward as possible. With the number crunching taken care of, you’re free to focus on the task at hand – choosing your dream used car.

Transparency is also a big one, with some providers really excelling in this area. Look for lenders that make it crystal clear how much the total cost of your loan will be, including extras like interest and fees. Lenders that attempt to hide these costs should automatically raise red flags. 

Enlist the help of a broker

Enlisting the help of an experienced broker is one of the easiest and most effective ways to track down the best used car finance deals. With the help of an expert car finance broker, you’ll unlock access to the best available finance deals. What’s more, you’ll get personalised advice every step of the way.

My Car Credit ticks all the boxes listed above, including ease and transparency. Our approach is underpinned by a goal to make car finance online as simple and accessible as possible. As a result, we can help you buy the car you want with the best possible finance rates for your circumstances.

The company is part of Evolution Funding, one of the largest and most respected motor finance brokers in the UK. This means you’ll have access to a large panel of car finance lenders. In addition, we use specialised technology designed to match you with the best products. Exclusive to Evolution Funding, this purpose-built technology increases your chances of acceptance. Even better, it helps match you with the best products and lenders for your unique circumstances.

Ready to get behind the wheel of your dream car? Get in touch with the My Car Credit team to find out more about how you can secure the best used car finance deals in the UK. Email us on enquiries@mycarcredit.co.uk or call 01246 458 810.

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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!

Who are the Best Car Finance Companies in the UK?

Woman browsing car finance companies on her laptop

So, you’ve decided to take the plunge and start looking for a new (or new to you) car. You’ve chosen to hold onto your hard-earned savings and opt for car finance instead. You certainly won’t be alone – over 90% of cars are now bought on finance in the UK.

You have various options available to you on how to finance a car. From going through the car dealership to applying online, there are plenty of ways to go. Whichever way you choose, it will ultimately be a car finance company that looks after you.

What do car finance companies do?

In a nutshell, car finance companies (or lenders) loan you the money to buy your car. They can often be part of a much larger organisation, such as a bank or car manufacturer. However, many of them are also independent businesses.

Whether you apply through a dealer, a broker or online, it is the finance company that you take out an agreement with. Furthermore, it is the finance company who owns the car until all payments have been made on the agreement.

There are many different finance companies across the UK. What’s more, they tend to focus on a particular area of the car finance market. For example, some finance companies specialise in helping customers who have poor credit. Others prefer to focus on good and excellent credit.

Introducing our panel of car finance companies

Being part of the UK’s largest car finance broker, Evolution Funding, My Car Credit has access to one of the largest selections of car finance companies out of any broker. Over the years, we’ve built up great relationships with these companies so that we can offer customers the best choice.

In addition, we’ve created market-leading technology that makes it easy for customers to get a quick decision on car finance. And because we have so many car finance companies on our panel, we can assist customers with all types of credit profile, from excellent and good through to poor and bad.

Read on for a bit of insight into many of the car finance lenders we work with.

Alphera Financial Services logo

Launched in 2006, Alphera Financial Services is part of the BMW Group, making them a motor company rather than a bank. This means that their products and services are developed specifically for those customers looking for car finance. They are multi-award winning and offer flexible finance solutions across a variety of new and used cars and motorcycles. As with all areas of the BMW Group, they put first-class service and an unrivalled understanding of the motor industry at the heart of their approach.

BNP Paribas finance company logo

BNP Paribas is a leading provider of finance in Europe, operating in over 30 countries. They have over 45 years of consumer finance experience and so are well placed to help you with car finance! They offer a wide range of easy-to-use car financing products including hire purchase, personal loans, personal contract purchase, personal contract hire and value-added products such as vehicle protection.

Blue Motor Finance logo

Established in 2005, Blue Motor Finance is one of the UK’s premier lenders of consumer car finance. With remarkable growth, they are ranked 1st in the Financial Times’ FT1000 Europe’s Fastest Growing Companies (March 2019). They use technology to ensure that they offer an excellent customer experience. This includes flexible and competitive finance packages, quick decisions, and reduced administration time.

Close Brothers Motor Finance logo
One of the UK’s leading independent motor finance companies, Close Motor Finance was founded in 1988. They are part of Close Brothers Group plc, a leading UK merchant banking group that was established in 1878! They offer a range of finance products for cars, motorcycles and vans. Close are multi-award winning, including being named Finance Provider of the Year (Prime) at the Car Dealer Power Awards 2020. This was due to their superb customer services.
motonovo car finance company logo

With over 40 years in the motor industry, MotoNovo Finance is one of the largest and fastest growing car finance companies in the UK. The Consumer Credit Awards 2020 voted them the Best Car Finance Provider, along with many other achievements. They can help with funding cars, vans and motorbikes.

northridge car finance logo
Dating back to 1956, Northridge Finance is part of the Bank of Ireland UK. Northridge have established themselves as one of the UK’s most trusted finance companies in the motor finance market. They were named Best Independent Lender (bank owned) at the Car Finance Awards 2019. Whilst they provide finance across a range of sectors, they specialise in motor finance. As part of Bank of Ireland UK, they have a solid foundation you can trust in.
oodle car finance logo
Young, fresh and innovative, Oodle joined the car finance market in 2016. Their ultimate goal is “to make buying a car as easy as buying a t-shirt on Amazon”. They are heavily focused on using technology to transform the way that people finance their cars. What’s more, they are developing a customer-first, fully integrated digital retail experience. They have a great reputation, earning them some great reviews on Trustpilot.
pcf bank car finance company in the uk
PCF bank has been financing customers’ cars for over 25 years. They have plenty of specialist knowledge and experience to help you with your car purchase. Since they are independent, they have no ties to any car manufacturers and so their customers have total freedom when choosing a car. They assess all applications on a case-by-case basis, offering car finance on both new and used cars between £2,500 and £250,000.
paragon bank car finance company
Founded in 1985, Paragon Bank plc are on the FTSE 250 and are specialists in motor finance. They offer finance on cars, LCVs, motorhomes and caravans. Furthermore, their car finance is available to homeowners, tenants and those living with parents, making them a great addition to our panel.
startline motor finance logo
Launched in 2012, Startline are a flexible lender who offer specialist finance for the near-prime market. What this means is that they often approve applicants who have been previously declined by mainstream prime lenders, while still offering attractive rates and terms. This is great if you have a less than perfect credit score but don’t quite fall into the poor credit bracket.
advantage finance logo
Advantage Finance is a subsidiary of S&U plc and was founded in 1999. They are another flexible lender who are often able to provide credit where other lenders won’t. They provide a straightforward, easy to understand Hire Purchase product that allows customers to finance the purchase of new and used motor cars, vans, motorcycles or caravans from any licensed UK dealer.
billing finance uk car finance company
Launched in 2012, Startline are a flexible lender who offer specialist finance for the near-prime market. What this means is that they often approve applicants who have been previously declined by mainstream prime lenders, while still offering attractive rates and terms. This is great if you have a less than perfect credit score but don’t quite fall into the poor credit bracket.
marsh car finance company
Established in 1973, Marsh Finance are an independent, family-owned finance company that offers both Hire Purchase and Personal Contract Purchase. They pride themselves on offering sensible finance by being a responsible lender. They have grown to being a leading lender in the motor finance market, including catering for those customers with impaired credit.
moneybarn vehicle finance logo

Moneybarn is the UK’s leading non-standard vehicle finance provider. Founded in 1992, they specialise in helping customers with a poor credit score who may have been turned down by other lenders. They can help with the financing of cars, vans and motorbikes. Moneybarn have won awards for their service and approach to lending, including ‘Non-Prime Lender of the Year’ at the Motor Finance Europe Awards 2020 and Feefo’s Platinum Trusted Service Award 2020.

specialist motor finance logo

Established in 2014, Specialist Motor Finance funds Hire Purchase agreements for customers. If you have a less than perfect credit file, Specialist Motor Finance may be the option for you. They offer products that are comparable in quality and service to conventional prime lenders, but with a more flexible approach.

moneyway car finance companies logo
Moneyway is part of Secure Trust Bank plc, who are the only UK bank awarded a Customer Service Excellence accreditation. They look after customers with great credit through to not so great and so are a nice, flexible option on our panel of car finance companies. With the backing of Secure Trust Bank plc, you can be sure you’re in safe hands with Moneyway.
zopa uk car finance companies logo
Zopa are probably the most unique car finance company on our lender panel. In 2005, they built the first ever peer-to-peer (P2P) lending company. Their car loan rates are often better than the dealerships and among the lowest in the market. What’s more, they’ve won awards for their customer service year on year.
evolution loans logo car finance company
Of course, we must include Evolution Loans because it’s Evolution Funding’s sister company – Evolution Funding is the company behind My Car Credit. Evolution Loans lends its own money for customers looking for Hire Purchase agreements on cars and LCVs. They are often able to accept applications where other lenders have been unable to.

Why use a broker when applying for car finance?

Now that you know a bit about each car finance company, you may be thinking about going direct to the lender of your choice. However, by taking this approach, you may struggle to find the best rate with the right lender for your circumstances. What’s more, it could take a lot of time and legwork, as well as involving multiple credit searches, which can damage your credit file.

At My Car Credit, we do all the legwork for you! Our smart soft search technology allows us to check your application against all these companies in one go, without impacting your credit score*. The results come back through to us in seconds and the best deal available for your circumstances wins your business!

You can test all this out by calculating car finance and then making a no obligation online application. So don’t delay, find out if one of our car finance companies can help you today!

* Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Representative APR 8.9%

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 8.9%, annual interest rate (fixed) 8.86%, 47 monthly payments of £184.94 followed by 1 payment of £194.94 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,387.12, total amount payable is £8,887.12.

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.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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!