Car Finance Options Archives

Can You Get Zero Deposit Used Car Finance?

Securing used car finance with no deposit may sound like a pipe dream. In fact, there are lenders around who can help you to find finance for a used car whilst paying no deposit. That said, there are potential barriers to doing so.

Can you find used car finance deals with no deposit?

The short answer is – yes. Many lenders will work with you to find a no-deposit car finance deal on a used vehicle. There are many benefits to this option. You don’t have to pay a hefty lump sum upfront – typically just a modest reservation fee – and can crack on with full use of the vehicle.

However, typically only candidates with high credit scores will secure zero deposit used car finance. Individuals searching for car finance with a poor credit rating are unlikely to be offered a no deposit car finance deal, whether for a used vehicle or not.

Remember, too, that there are benefits to paying an initial deposit. Car finance deals like Hire Purchase (HP) or Personal Contract Purchase (PCP) require a deposit, which in turn reduces the size of your overall monthly repayments, as well as any interest rate attached.

By not paying an initial deposit, you have more money to pay back overall, which might also translate to a longer repayment period too.

As such, although no deposit used car finance might sound appealing, candidates with less than excellent credit ratings, or those who want more affordable repayment schemes, might want to reconsider whether it’s the most suitable option.

Find the right car finance for you

Find out if zero deposit used car finance is right for you with help from the My Car Credit team. Email us on enquiries@mycarcredit.co.uk and get behind the wheel of your ideal car finance today.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

What Is the Best Car Finance for Me?

Man confused at different car finance option

Finding the best car finance for you comes down to a range of factors.

Distinguishing between different car finance agreements can feel mystifying, which is why we’ve provided this handy guide to help you secure the best car finance for your needs and circumstances.

What are the different car finance options available?

Not everyone has the available cash to pay for a car upfront, which is where car finance comes in.

Car finance is essentially a flexible, accessible way of financing a car. It allows you to borrow a pre-agreed amount of money to purchase a vehicle. This money is paid back in a series of affordable monthly instalments, during which time you have full use of the vehicle.

If you have car finance eligibility, you can apply for one of two agreements – either hire purchase (HP) or personal contract purchase (PCP). These are the two main types of car finance.

There are also leasing agreements and car loans, but strictly speaking, these aren’t car finance, so we won’t be discussing them here.

Hire Purchase (HP)

With HP car finance, you’ll pay an initial deposit followed by a series of equal monthly repayments. The size of these will depend on your unique car finance deal, as well as the size of your deposit.

At the end of an HP finance deal, you will own the car outright – no final payment is required. As such, your repayments on HP are likely to be slightly higher than with PCP finance.

HP car finance is available for both new and used vehicles.

Personal contract purchase (PCP)

PCP finance is much like HP car finance. You pay a series of monthly instalments to the lender, the size of which is determined by your initial deposit and contract length.

However, unlike HP finance, you don’t automatically own the vehicle when a PCP deal terminates. This means that your repayments with PCP will be lower than an equivalent HP deal, because you’re technically only paying for the car’s depreciation value.

If you choose to own the vehicle at the end of the car finance deal, you’ll pay one final lump sum (a balloon payment). This can be equivalent to a third or half of the car’s initial price, so you can refinance the vehicle to pay for this.

Alternatively, if you have positive equity – meaning the car is worth more at your car finance contract’s end than the optional final payment – you can hand the car back, choose another, and put the extra value towards this vehicle’s deposit.

What is the best car finance for me?

The best car finance for you will depend on a number of factors…

For low monthly payments

Monthly payments are higher with HP because you automatically own the car outright at the end of the finance agreement.

If keeping your monthly repayments low is a priority, PCP is the best car finance for you. However, you may end up paying more overall than with HP finance, depending on the interest rate and length of your finance agreement.

For minimal restrictions

PCP finance often comes with restrictions. These can include everything from mileage restrictions through to paying extra fees if you return the car with excessive wear and tear. Equally, if you want to take your car abroad, you may face limitations with certain PCP agreements.

HP finance does not have these kinds of restrictions or limits, so it’s a better option if you think you’ll rack up a high mileage over your finance agreement – or if you often want to drive internationally. You’ll also own the car outright once you’ve reached the end of your finance agreement.

For flexibility

PCP finance agreements might have vehicle usage restrictions. However, PCP deals tend to be more flexible than HP finance.

Both kinds of finance have flexible repayment terms (typically somewhere from 12 to 60 months). However, with PCP, you have more opportunity to determine the length of your agreement. You can also change the size of your deposit.

Remember, the higher the deposit, and longer the contract, the lower these monthly repayments will be. That said, you may end up with higher interest rates compared to HP finance.

Find the best car finance for you with My Car Credit

If you have questions about securing the best car finance for you, contact our friendly team today on enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What is the Oldest Car a Bank Will Finance?

What Happens if I Can’t Pay My Balloon Payment?

Is there such a thing as guaranteed car finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

car buying car finance credit score Jan24

Does everyone get pre-approved for car finance?

If a lender offers you pre-approval for car finance, it’s a good provisional indicator that they will lend you a pre-determined sum of money according to terms and conditions.

But what is pre-approval for a loan, and how can you secure it?

What does it mean to get pre-approval for car finance?

If you’re pre-approved for a loan, it means the lender conditionally agrees to lend you the money according to the preliminary information that you’ve given them.

This information can include personal information, details about your employment, and your address details. Once this information is provided, the lender will perform a car finance soft credit check, which won’t impact your overall credit score. They will then decide whether or not to offer you a pre-approved loan.

Receiving pre-approval for a loan is a good indicator that you’ll secure car finance. However, it’s not a guarantee.

After the initial soft credit search, the lender will perform a hard credit check. This involves a deeper dive into your credit profile, as well as confirmation of your ID and documentation checks. Be aware that a hard credit check does impact your overall score.

Depending on the results of this search, the lender can decide whether or not to pre-approve you for car finance. If you are pre-approved, the lender will outline the terms and conditions of a potential loan.

Does everyone get pre-approved for car finance?

Not everyone will get pre-approved for car finance. Whether you are pre-approved or not depends on your personal circumstances, as well as the lender’s review of your credit rating and the ID documents you provide.

If you aren’t pre-approved for car finance, it won’t show up on your credit score. You can also take a few simple steps to help improve your chances of securing pre-approved car finance should you choose to reapply. This can include everything from improving your credit score through to reducing your loan amount and researching lenders to find one that works for you.

What are the benefits of pre-approval?

Greater confidence

If you’re pre-approved, it’s a good indicator that you’ve been deemed creditworthy by a lender.

As such, you can go into your search for car finance with greater confidence and reduced stress. It also reduces your chances of getting rejected and harming your overall credit score.

Greater clarity

Once you know which kinds of loans and interest rates you qualify for, you can better compare lenders and establish which finance agreement meets your needs.

Better bargaining

You may also be able to improve your bargaining options over the price of a vehicle, because you’ll know how much you can afford to spend.

Depending on the lender, you may also be able to secure better interest rates, too.

Find car finance with My Car Credit

If you’ve still got questions about the pre-approval process for car finance, get in touch with our friendly team today on 01246 458 810 or email us at enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What Happens if I Can’t Pay My Balloon Payment?

Am I eligible for car finance?

No Deposit Car Finance – How Does it Work?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

car finance confidence credit check Jan24 pre-approved

How much do you have to earn to get car finance?

Car finance can help to make the purchase of a vehicle more affordable. That said, you may still find yourself wondering, “but how much do you have to earn to get car finance?”

“How much does car finance cost? Am I earning enough to cover the expenses?” If these questions are on your mind, My Car Credit is here to help! In this article, we’ll clarify the factors that may impact the car finance terms you’ll face. Read on to learn more…

So, how much do you have to earn to get car finance?

There’s no one straight answer when it comes to how much income you need to secure car finance. It depends on a number of factors. However, it’s essential to ensure you have a sense of what you can afford to borrow before signing any car finance deal.

The factors that can impact the car finance you may be eligible for include your credit score, borrowing history, the loan type, the amount required, as well as the vehicle itself.

Any car finance provider will ask for proof of income when you apply – but you don’t necessarily have to be in full-time employment to be eligible. It really depends on a mix of the above factors. My Car Credit can also work with individuals with poor credit ratings, too. Again, it’s all about a combination of factors and personal circumstances.

Don’t forget that you need to factor other costs into the overall expense of a vehicle. Cars need regular servicing and maintenance, and you also have to pay everything from car tax to fuel and insurance.

Find out more about car finance

If you have questions about car finance, give our friendly team a call on 01246 458 810 or email us today at enquiries@mycarcredit.co.uk. We’ll guide your car finance journey, putting you in the driving seat.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Electric Car: Lease vs Buy – Which is Best?

Car Finance vs Personal Loan, what’s best for me?

Balloon Payments Explained: What, Why & How

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

car buying car finance credit score Jan24

Car Finance for First Time Buyers: A Beginner’s Guide

Buying your first car is an exciting milestone. It comes with a newfound sense of freedom and options to go wherever you want, whenever you want. What’s not to love? Of course, for most Brits, purchasing a new car outright isn’t realistic. Cue car finance for first time buyers.

Bankrolled by trusted lenders, car finance fills the gap between your initial cash down payment and the actual price of the vehicle. It’s hugely popular in the UK, with the latest statistics revealing 92% of new private cars are purchased using finance.

Want to know more? Read on for our complete guide, covering everything you need to know about car finance for first time buyers.

The benefits of car finance for first time buyers

First, let’s take a look at some of the key benefits of financing a car as a first time buyer:

Expand your options

Many first time buyers think they’re limited by a cash budget when shopping for a car. The truth is most new private cars in the UK are purchased using car finance. As mentioned earlier, this is a great way to boost your budget and unlock access to more desirable models.

Most Brits don’t have tens of thousands of pounds to spend on a new car. Instead, they partner with lenders to cover the cost of a car that would otherwise be out of their cash price range. We’re not saying car finance should be used to spend beyond your means. For example, buyers on entry-level salaries shouldn’t be eyeing luxury SUVs. Instead, car finance for first time buyers is simply a clever way to stretch out your payments over a pre-set timeframe.

Improve your credit score

Credit scores have to be earned, which can make things difficult for Brits without a solid borrowing history. If you have a limited financial paper trail, car finance for first time buyers can be a great way to improve your credit score and prove to lenders that you’re a responsible borrower. Moving forward, this will help you secure other loans like a house mortgage.

Stretch your insurance budget

New drivers are usually hit with sky high insurance rates. On average, motorists aged 25 or younger pay around £158 per month in premiums. If you’re wondering where you’re going to find an extra £1900 a year to cover your new driver insurance, car finance can be a great way to free up cash. You can’t spread out the cost of your annual insurance premium, but you do have options when it comes to the cost of car ownership.

Factors to consider for first time car finance

Can first time drivers get a car on finance? The answer is ‘yes’, but there are a couple of factors to consider first…

Age and eligibility

Can you get car finance at 18? Absolutely. At My Car Credit, we specialise in pairing young buyers with trusted lenders across the UK. 18 is the minimum age you can sign a contract, though we’re happy to get the ball rolling when you’re 17. On your 18^th birthday, we give your application the green light.

Credit score

We touched on how car finance for first time buyers can improve your credit score earlier. But what if you have a poor credit score? With the right support, it’s still possible to secure car finance. You may need to put down a slightly larger cash deposit and be willing to accept a higher annual percentage rate (APR) but in many cases, car finance is still possible with a poor credit score.

Types of car finance for first time buyers

When shopping for car finance, you’ll see a variety of different options. They can be a little hard to decipher at first, which is why we’ve put together a quick and easy guide covering your options.

Personal Contract Purchase (PCP)

PCP contracts are one of the most widely used car finance options in the UK. Benefits include low monthly repayments and lots of flexibility. You start with a cash deposit, then repay the rest of the loan in fixed monthly payments, plus interest. Instead of purchasing the car, your repayments cover the cost of depreciation.

Because of this, most PCP loans have mileage caps to limit depreciation and minimise wear and tear. When your contract ends, you can choose to return the car and start a new contract on a brand new vehicle, or you can make a final ‘balloon payment’ and own the car outright.

Hire Purchase (HP)

HP loans generally start with a 10% deposit, followed by monthly instalments, plus interest. Unlike PCP contracts, your fixed monthly payments are put towards the total value of the car, not depreciation. This means you don’t have mileage caps and you’re the legal owner of the car at the end of the contract. No balloon payment necessary. You can either sell the car and start a new HP loan or keep it with no ongoing payments.

Personal Contract Hire (PCH)

Unlike PCP and HP loans that give you the option to own the car at the end of your contract, PCH agreements adopt a lease model. Your repayments aren’t put towards depreciation or the total cost of the car. Instead, you’re simply renting a vehicle for the duration of your contract.

Purchase your dream car with auto finance

Now we’ve got the formalities out the way, it’s time to get stuck into the fun side of car finance – shopping for your dream set of wheels! Whether you see yourself behind the wheel of a zippy Mini or a spacious SEAT SUV, we’re here to help with tailored auto finance solutions. Give us a call on 01246 458 810 to find out more about car finance for first time buyers or email us at enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What is the Oldest Car a Bank Will Finance?

Why Does Car Financing Take So Long?

PCP Finance Explained – Personal Contract Purchase Guide

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

auto finance car finance options credit score hire purchase interest Jan24 loans PCP

How Does Auto Finance Work?

Lady applying for auto finance in a cafe

With average car prices sitting at around £38,000 for family-friendly SUVs and almost £22,000 for compact hatchbacks, paying cash simply isn’t an option for many Brits. This is where auto finance steps up. Designed to get you behind the wheel of your dream car faster, auto finance is a great way to boost your spending power.

So, how does auto finance work? Read on for a complete guide that covers everything you need to know about auto finance. We cut through jargon, unpack the acronyms and break down exactly how auto finance works.

What does ‘auto finance’ mean?

The term ‘auto finance’ is relatively self-explanatory. Like other financial contracts, such as credit cards and house mortgages, auto finance makes big purchases more affordable for everyday Brits.

How does auto finance work? The umbrella term describes a series of credit agreements between the buyer and lender. We take a closer look at the different types of auto finance later on in the article.

Instalments are generally made monthly, though this can vary depending on the type of auto finance contract. Many auto finance contracts are also restricted by caps on mileage and wear and tear. This can work in your favour if your priority is to drive the latest models packed with next-gen technology and driver-assist features.

Does auto finance include interest?

How does auto finance work in terms of interest? Most auto finance contracts incur interest. However, rates are generally far more affordable than taking out a personal loan with a bank or private lender. Interest rates vary depending on the type of auto finance loan you take out.

Auto finance eligibility

Eligibility for car finance depends on a variety of factors. Most importantly, you’ll need to be at least 18-years old and a legal resident of the UK. Tick both these boxes and your chances for auto finance approval drastically increase. Lenders will then start looking at things like your credit score.

What are the different kinds of auto finance?

There are several different types of auto finance to choose from. Finding the right fit depends on your personal preferences and financial situation. We take a closer look at the different options below…

Car loans

Car loans are essentially personal loans designed to purchase vehicles. Cash is borrowed directly from banks or private lenders and used to fund the purchase of a vehicle. You become the outright owner of the car and pay back your loan in instalments, plus interest.

Personal Contract Purchase (PCP)

Low monthly repayments and plenty of flexibility make PCP contracts one of the most popular car finance options. How does auto finance work for PCP contracts? You kickstart your PCP loan with a cash deposit. The larger your initial deposit, the lower your monthly repayments. PCP repayments are low as you don’t pay for the car itself, rather you cover the vehicle’s depreciation in value. Most PCP loans include mileage caps designed to limit wear and tear.

At the end of the contract, you can choose to make a final ‘balloon payment’ to become the owner of the car. This covers the remaining value of the vehicle. Alternatively, you can return the car and start a new contract. This makes Personal Contract Purchase loans a great option for motorists who love to drive the latest models.

Hire Purchase (HP)

HP loans are similar to PCP contracts, with a few small adjustments. How does auto finance work for HP loans? Deposits are usually around 10%, followed by fixed monthly payments for the duration of the contract. Interest rates are competitive and repayment terms are generally flexible. Unlike PCP loans, HP contracts don’t usually restrict you with mileage caps. This makes them a great option for motorists who plan to use their car for business and leisure.

Like PCP loans, you don’t legally own the vehicle unless you make a final balloon payment at the end of the contract. Otherwise, you’re free to return the car at the end of the contract, without any further payments.

Personal Contract Hire (PCH)

PCH leasing agreements see you lease a vehicle for the duration of your contract. There’s no option to purchase the car and become the outright owner at the end of the contract. Unlike PCP and HP loans, you’re not technically borrowing cash to fund the purchase of a car.

Instead, you pay a non-returnable deposit to initiate the leasing agreement and continue to make monthly ‘hire’ repayments. You’ll need to return the car at the end of the contract. Most PCH agreements are restricted by mileage and wear and tear caps.

Do I need a good credit score for auto finance?

Most lenders will run a credit score check before approving car finance applications. This helps establish your borrowing history and determine the level of risk involved. At My Car Credit, we always start with a soft search. Unlike hard searches, this entry-level financial history check doesn’t leave a mark on your credit score. If you want to know more about your credit score to finance a car, a soft search is the best place to start.

A good credit score will always help you unlock the best car finance deals. So, how does auto finance work without a good credit score? With the right help and guidance, many applicants with poor credit are eligible for car finance. The key is to find a car finance broker with a large panel of lenders. This allows brokers to look beyond traditional lenders and match your application with other options.

Find the best auto finance deals with My Car Credit

Tracking down the best auto finance deals doesn’t have to be stressful. At My Car Credit, our goal is to connect you with the top lenders in the UK, so you can enjoy stress-free auto finance and the best possible interest rates.

Want to know more about auto finance? Get in touch with our expert team today to learn more about how auto finance works – and your different options.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Car Finance for First Time Buyers: A Beginner’s Guide

Car Finance vs Personal Loan, what’s best for me?

5 Different Ways to Pay for a Car

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

auto finance credit score eligibility hire purchase interest Jan24 loans PCP

Is It Smart to Finance a Used Car?

Before beginning your search for a car, it’s important to establish whether you want or need a brand-new vehicle. Being a car’s first owner might be appealing in many ways, but don’t forget that vehicles depreciate in value as soon as they leave the forecourt. So, whilst there are ways of securing car finance on new vehicles, you may find yourself wondering, “is it smart to finance a used car?”

Why finance a used car?

Used cars will cost less than new ones. Any car finance agreement for a used vehicle will therefore have lower monthly repayments and shorter terms than car finance for new vehicles. As such, if your credit rating is poor, you’re more likely to secure car finance on a used car compared to a new one, because the repayments are lower, so lenders will see the deal as less risky.

What’s more, car finance providers are becoming more flexible with the kinds of car finance deals available on used cars. From PCP to Hire Purchase, there are many different options available, and some providers will now also allow you to lease a used vehicle.

So, is it smart to finance a used car?

If saving money is your priority, or if your credit score is low, then it’s smart to finance a used car. Because the vehicle is used rather than brand new, any car finance agreement will have lower monthly repayments and shorter deals as a result.

You can use My Car Credit’s car finance calculator to get a sense of the kind of agreements that are within your reach. Alternatively, contact us on enquiries@mycarcredit.co.uk to find out how we can help you secure a great finance term on your used vehicle.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What to Do If You Can’t Pay Car Finance Because of COVID-19

Balloon Payments Explained: What, Why & How

How Much Car Finance Do I Qualify For?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

car finance car finance calculator car finance options Jan24 used cars

Can I Get a Car Loan Instantly Online?

When it comes to purchasing a vehicle, there are a number of ways to do so. Two of the most popular means are car loans and car finance. The type of finance agreement that’s right for you will depend on a number of things, including your credit rating and the speed with which you want the agreement to be approved.

Can I get a car loan online?

A car loan is a kind of personal loan that’s strictly for the purchase of a vehicle. Car loans are secured, and the amount that you borrow as well as the interest rate is typically dictated by the price of the car.

Finding a car loan can be done online, and it’ll typically only take minutes to fill out an application form. However, securing a car loan might not be quite so speedy.

How long does it take to secure a car loan?

The initial submission of a car loan application form can take mere minutes, but locking down that loan can take longer. It’s also worth noting that banks and credit unions will typically take longer to process applications than online lenders. The turnaround time will vary between providers, as will the length of time that you might wait for your loan to come in.

There a number of other factors that will impact how long it can take to secure a car loan…

Your credit score

Applicants for a car loan usually have to have a strong credit rating when applying – and if you’re opting for pre-approval of a car loan, having a good credit score is essential, as a hard credit check will be performed.

That’s why it’s worth doing your homework in advance to ascertain whether or not the lender to which you’re applying will accept less than ideal credit ratings, as well as determining whether your report has any errors or lists incorrect information. If you’ve got a poor credit rating, car finance may be a more accommodating option for you over a car loan.

Lack of documentation

When applying for either a car loan or car finance, you’re going to have to provide some personal information, which can also include documentation. Lacking these – or not submitting them in time – will delay your application, so it’s worth having these to hand.

Not doing your homework

As already detailed, you want to look over your credit rating in advance of your application to ensure there are no errors, but it’s also worth researching the car loan provider. Many institutions, for example, may have minimum income requirements for applicants, or only provide loans for specific vehicles. If you apply without doing your homework on the car loan lender, you could waste your own and their time.

Car loan or car finance?

If you have questions about whether a car loan or car finance is right for you, My Car Credit are here to help. You can contact us on enquiries@mycarcredit.co.uk today for help and advice.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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I want to buy a car on finance, how much can I borrow?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

car finance options car loan credit rating credit score online car finance

Is car finance easier to get than a loan?

Car finance, personal loans – when it comes to purchasing a car, there are a number of ways that you can finance it. But is car finance easier to get than a loan, and how do these agreements differ? In this article, we’ll provide answers to all these questions, helping you to get in the driver’s seat (literally and metaphorically)!

Car finance vs. a loan – what’s the difference?

First up, you need to understand the difference between a loan and car finance. A personal loan involves borrowing money from a bank or other financial institution. You’ll typically repay this over a pre-determined series of monthly instalments (plus interest). Meanwhile, a car loan is a type of personal loan, but is for the specific use of purchasing a vehicle (as the name suggests).

Car finance is when either a financial institution or lender gives you a loan to finance your car. You’ll then pay this loan off with a series of monthly instalments (plus interest).

There are various different kinds of car finance. The right kind of car finance will vary between drivers, all of whom have different needs and preferences – for example, whether or not you want to be the vehicle’s owner, whether you can manage mileage and other caps, whether the agreement is secured, and the length of finance term and interest rate that you may face.

There’s a real difference between these types of car finance, but the two most popular are HP (hire purchase) and PCP (personal contract purchase).

Car finance vs. a loan – which is easier to secure?

A personal loan

There are advantages to funding a car with a car or personal loan. If you choose to do so, you’ll be seen as a cash buyer by a dealer, meaning you’re unlikely to face a deposit or any balloon payments. Unlike certain car finance agreements, personal loans are unsecured, meaning that you don’t have to put up any assets in order to secure them. With a personal loan, you’ll also be the legal owner of the vehicle, meaning that you can sell it whenever suits you.

When it comes to personal loans, it may be tempting to opt for longer repayment schedules, but be aware that this does mean you’re going to be paying higher interest costs overall as a result. It’s important to be reasonable in establishing your loan period, keeping monthly payments affordable whilst sticking to the shortest loan term you can get.

Whilst you can secure personal loans from a variety of banks and institutions, the sheer availability of loans might make shopping around to find the best one for you feel overwhelming. Typically, online car finance providers like My Car Credit will be able to do that work for you, providing a no-obligation quote that takes account of your needs and circumstances in mere minutes.

Be aware that personal (or car) loans will be credit score-contingent. Applicants with higher credit scores are going to be favoured more, and there’ll be less chance of securing a loan if your credit score is poor. For those of you who sit in this category and are looking for ways to finance a car, it’s likely to be easier to secure car finance than a loan.

Car finance

So, is car finance easier to get than a loan? Depending on your credit score, it may be easier to secure car finance than a personal loan. Many car finance providers like My Car Credit can help you to find car finance even with a poor credit rating, and initial credit checks tend to be soft searches – unlike with a personal loan.

The process of finding and securing car finance is also significantly quicker than when trying to locate a personal loan. Online application processes make your search quick and easy. They’ll also provide you with an almost immediate sense of the kind of finance term you may be eligible for.

Bear in mind, too, that because car finance is often a secured loan – meaning that the car is used as collateral – it can be easier to get than a personal loan. However, usually you will have to pay a deposit (typically around 10%), and if you fail to make your repayments in a timely manner, you’ll lose the car.

Start your car finance journey today

If you’re looking for an easy, flexible and affordable way to purchase a vehicle, get in contact with My Car Credit today on enquiries@mycarcredit.co.uk. We can discuss your car finance needs and help you find an agreement that suits you.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

car finance car finance options car loan credit rating credit score Jan24 online car finance

How Many Years in a Car Loan Term?

Woman working out length of car loan on a calendar

If you’re looking to get a car finance quote, there are a number of factors to consider. Firstly, you’ll want to consider what kind of car finance deal you want, as there are a number of different types.

The most popular options tend to be hire purchase (HP), personal contract plans (PCP) and personal contract hire (PCH). The right kind of car finance for you will depend on variables such as whether or not you want to own the car at the close of the term, as well as the kind of repayment terms that you need. Another major factor to consider is how many years a car loan term lasts.

How many years in a car loan term?

Car finance is becoming an increasingly popular way to purchase a vehicle. As an accessible, affordable way of paying off a car, car finance allows you to remain in control of your budget and know what you owe when. So, exactly how many years are in a car loan term?

According to Experian, the average length of a car loan for new vehicles has increased to 72 months, with the average length of a car loan for used vehicles growing similarly to 65 months. This marks a significant increase from the standard car loan periods, which usually consist of agreements of 24, 48 or 60 months.

The appeal of longer car loan terms tends to be the fact that monthly repayments will be lower. However, you’ll be making more of them, and you’ll therefore be paying more in interest, so it’s worth considering if a longer car finance term really is beneficial for you in the long run.

Secure your ideal car finance today

If you’re looking for car finance, contact My Car Credit on enquiries@mycarcredit.co.uk, We’ll assist you in establishing your car finance needs, including the length of the loan agreement, and help you to find a deal that matches your unique circumstances, even with a poor credit score.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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What is a Guarantor Loan?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

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!

or call 01246 458 810

car finance options hire purchase Jan24 length of agreement PCP

Securing used car finance with no deposit may sound like a pipe dream. In fact, there are lenders around who can help you to find finance for a used car whilst paying no deposit. That said, there are potential barriers to doing so.

Can you find used car finance deals with no deposit?

Find the right car finance for you

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Finding the best car finance for you comes down to a range of factors.

Distinguishing between different car finance agreements can feel mystifying, which is why we’ve provided this handy guide to help you secure the best car finance for your needs and circumstances.

What are the different car finance options available?

Hire Purchase (HP)

Personal contract purchase (PCP)

What is the best car finance for me?

For low monthly payments

For minimal restrictions

For flexibility

Find the best car finance for you with My Car Credit

Rates from 9.9% APR. Representative APR 12.4%

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If a lender offers you pre-approval for car finance, it’s a good provisional indicator that they will lend you a pre-determined sum of money according to terms and conditions.

But what is pre-approval for a loan, and how can you secure it?

What does it mean to get pre-approval for car finance?

Does everyone get pre-approved for car finance?

What are the benefits of pre-approval?

Greater confidence

Greater clarity

Better bargaining

Find car finance with My Car Credit

Rates from 9.9% APR. Representative APR 12.4%

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Car finance can help to make the purchase of a vehicle more affordable. That said, you may still find yourself wondering, “but how much do you have to earn to get car finance?”

So, how much do you have to earn to get car finance?

Find out more about car finance

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Buying your first car is an exciting milestone. It comes with a newfound sense of freedom and options to go wherever you want, whenever you want. What’s not to love? Of course, for most Brits, purchasing a new car outright isn’t realistic. Cue car finance for first time buyers.

The benefits of car finance for first time buyers

Expand your options

Improve your credit score

Stretch your insurance budget

Factors to consider for first time car finance

Age and eligibility

Credit score

Types of car finance for first time buyers

Personal Contract Purchase (PCP)

Hire Purchase (HP)

Personal Contract Hire (PCH)

Purchase your dream car with auto finance

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What does ‘auto finance’ mean?

Does auto finance include interest?