Car Finance Options Archives

Car Finance Pre-Approval: Does Everyone Get Accepted?

If you’re looking for car finance, you’ve possibly heard of the term ‘pre-approval’. But what is car finance pre-approval, and does everyone get it?

Many buyers are unsure if they qualify, but securing pre-approval for a car loan is the first step in anyone’s car finance journey. Lenders will look into your personal details and use these to give you an initial approval or approval in principle. This indicates the likelihood of your formal acceptance for a car finance agreement.

This article will answer your questions on securing pre-approved car finance. We’ll break down exactly how the process works, who gets accepted and how to improve your chances of pre-approval.

What is car finance pre-approval?

When you first apply for car finance, you’ll need to give us some of your personal information. Lenders will then use this information to give you a provisional decision on your likely acceptance for car finance. In other words, if you secure car finance pre-approval, you’ve been approved in principle for car finance acceptance.

Be aware that car finance pre-approval does not guarantee that you’ll ultimately be approved for a finance agreement – it’s a provisional decision.

Lenders ultimately make their decision to offer you pre-approval based on the information you provide at the time of application. So, car finance pre-approval is not the same as final approval, which will only come once you’ve chosen a vehicle and all contracts are drawn up.

When you first apply for car finance, we’ll ask you for the following information:

Details about your income and employment status
Your credit history
Personal details, including your address history for the past three years

We then use this information to perform a soft credit check. This initial check assesses your car finance affordability, and won’t impact your overall credit score.

We then decide whether you’re eligible for car finance pre-approval.

Securing pre-approved vehicle finance can help you in your search for the most suitable agreement and car for your needs. It gives you an insight into the budget you’re likely working to, allowing you to shop with confidence.

Does pre-approval guarantee car finance?

As mentioned above, securing car finance pre-approval is not the same as final approval. In other words, pre-approval for car finance does not guarantee your ultimate acceptance.

Lender decisions for pre-approved car finance are based on the information you provide at the time of application. Any changes in your circumstances since receiving your pre-approval can therefore change your eligibility.

Moreover, your final approval for car finance will only be made after the following checks:

Hard credit check – Unlike a soft credit check, a hard credit check will leave a mark on your credit score. A hard credit check ultimately confirms your car finance eligibility.
Proof of income and ID – You’ll need to provide all necessary supporting documents to secure car finance final approval. This helps protect both you and the lender from fraud.
Vehicle eligibility – Any lender will want to confirm the eligibility of the car for finance, and that it suits the lender’s criteria.

Be aware that your pre-approval and finance terms may change after a full assessment of your background and circumstances.

Does everyone get pre-approved for car finance?

Whether you’re eligible for car finance pre-approval will depend on your circumstances. Not everyone can secure pre-approved car finance – eligibility usually depends on the following factors:

Credit score – Your credit score will impact your likelihood of car finance pre-approval. Applicants with poor credit are less likely to secure pre-approval.
Past defaults/CCJs – If your credit report indicates past loan defaults or CCJs, it will be more difficult to secure pre-approval.
Employment status – A lack of employment stability can impact your chances with pre-approval as lenders will consider you more of a risk.
Affordability checks – Your credit report is critical to your likelihood of securing car finance pre-approval – but so is your affordability. Put simply, can you afford the repayments of your agreement?
Accuracy of application info – Providing accurate, up-to-date information when you first apply is essential for pre-approval.

Why might someone not be pre-approved?

There are a number of reasons why you may not secure pre-approved vehicle finance. The most common include:

Poor or non-existent credit history – If your credit history is patchy or poor, you’re less likely to secure pre-approval.
High existing debt or recent missed payments – Missed payments or lots of debt indicate you’re a higher risk borrower.
Very low or unstable income – Low or unstable income reduces your car finance affordability.
Not being on the electoral roll – Lenders view registering to vote favourably when considering car finance pre-approval.
Mistakes or gaps in application – Any mistakes in the information you provide on application will delay the process, impacting your likelihood of pre-approved car finance.

Just because you haven’t secured car finance pre-approval doesn’t mean you won’t secure car finance! There are a number of ways to improve your car finance eligibility…

How to improve your chances of getting pre-approved

These are the practical steps that you can take to increase your likelihood of getting pre-approved car finance:

Check your credit report and fix any errors – One of the best ways to improve your chances of car finance pre-approval is by fixing any errors on your credit report.
Lower your credit usage and pay off small debts – Lowering your credit utilisation and paying off your debts on time helps make you a more viable loan candidate.
Register on the electoral roll – Lenders will check whether you’re registered on the electoral roll to protect themselves against fraud.
Provide accurate employment/income details – Providing accurate personal information and proof of income all increase your likelihood of pre-approved vehicle finance.
Consider a lower loan amount or longer term – Both will improve your chances of pre-approved car finance.
Work with a broker like My Car Credit for better lender access – With access to the largest lender panel of any UK broker, we’re more likely to get you car finance pre-approval.

Benefits of getting pre-approved

Know your budget upfront – With pre-approved vehicle finance, you’ll know the budget you’re working with.
Shop for cars more confidently – Knowing your budget means you can shop for your next vehicle with confidence.
Less risk of being declined later – Although pre-approval doesn’t guarantee final approval, the likelihood of not being accepted for car finance is lower.
Potential to secure better interest rates – You’ll get access to better interest rates and more bargaining power with car finance pre-approval.
Avoid multiple hard credit checks – Unlike soft searches, hard credit checks show up on your credit report and can drive your score down.
Speeds up the buying process – Securing pre-approval streamlines the financing process.

Why choose My Car Credit for car finance pre-approval?

At My Car Credit, we work hard to improve your chances of securing car finance pre-approval.

You’ll gain access to the UK’s largest lender panel, benefitting from fast decisions, no paperwork and friendly, expert support throughout the process.

An initial soft credit search won’t affect your credit score, and we work with drivers with all kinds of credit backgrounds to ensure an inclusive approach to car finance.

Plus, you can use our car finance calculator to see what kind of agreement you could access through us.

Car finance pre-approval FAQs

Is pre-approval the same as final approval?

Car finance pre-approval is also known as a decision in principle. It’s a provisional decision that indicates your likelihood of formal acceptance for car finance – but it doesn’t guarantee final approval.

Will pre-approval affect my credit score?

Different lenders conduct different credit checks when you first apply for car finance. At My Car Credit, we conduct initial soft searches, meaning that securing car finance pre-approval won’t affect your overall score.

Can I get pre-approved with bad credit?

It’s harder to secure pre-approved vehicle finance with bad credit. Thankfully, there are ways to improve your likelihood of pre-approval, including fixing any errors on your credit report and working with a broker like My Car Credit.

Can I apply before choosing a car?

It’s sensible to apply for car finance pre-approval before shopping for your car. That way, you have a better sense of the rates you’re more likely to qualify for, and can shop with confidence knowing the budget you’re working with.

How long does pre-approval last?

The length of time that car finance pre-approval lasts will vary between different lenders and brokers. At My Car Credit, we’ll give you a no-obligation car finance quote in mere minutes, thanks to our speedy application process.

Ready to check if you’re pre-approved?

By applying for car finance with My Car Credit, you’re gaining access to the UK’s largest panel of motor finance lenders as well as a professional team of car finance experts.

You can fill out our online application form in minutes, and our initial soft credit check won’t impact your overall score.

Plus, our inclusive approach to car finance means we can even support drivers with poor credit. Apply now or contact us to find out more.

Rates from 9.9% APR. Representative APR 10.9%

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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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

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 10.9%

Evolution Funding Ltd T/A My Car Credit

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How Do Balloon Payments 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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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 Drivers: A Beginner’s Guide

Buying your first car is an exciting milestone. You probably can’t wait to get on the road, whether it’s road trips with your mates or just a much easier commute to college or work. But even the bank of Mum and Dad can’t stretch to the cost of buying a car outright, which is where finance comes in.

Car finance for first-time drivers makes it realistic to get a good set of wheels without the massive upfront costs. It means you can swerve the dodgy second-hand car dealerships, breakdowns at the side of the road and ongoing costs for repairing an old banger.

It’s more common than you might think too. From May 2023-2024, more than two million cars were bought on finance in the UK. New drivers are no exception, whether you’re a teenager passing for the first time or an adult getting your licence later in life. Below, we’ll look at how you can get a new or used car on finance – including the challenges, different options and tips to improve your chances.

How do first-time drivers get car finance?

While drivers can pass their test at any stage in life, lots of people get straight into it from the youngest possible age – 17. Unfortunately, the most eager teenagers who learn to drive quickly and pass for the first time won’t be able to apply for finance just yet, as the minimum age is 18.

You might think you can get a parent to apply for finance on your behalf. However, this can be classed as fraud, as discussed in our article on finance for children.

From 18, all drivers can apply for car finance. You’ll need:

Your licence
Proof of income
Proof of address
And typically a selfie with your licence to prove your identity

Admittedly, young first-time drivers might struggle to get car finance from mainstream lenders because of limited or no credit history (more on this below). Fortunately, some financial institutions see past this – offering car finance specifically for younger drivers. As well as a more lenient approach to credit history, you can expect lower deposits and more flexible terms.

Why is car finance difficult to get for young first-time drivers?

So, you’re over 18 and ready to finance a car. There’s just one small problem – credit history. Even though you’re legally classed as an adult, you won’t have a credit profile that puts you on a par with your elders just yet. That’s simply because you’ve not been working, paying bills and making other repayments for several years – you’ve not had the time just yet!

Credit files are one of the main ways lenders check your eligibility and trustworthiness, so having limited or no credit history is obviously a stumbling block. It makes lenders cautious, because they can’t see evidence of you borrowing and paying back money to other companies.

That’s not the only risk factor either. Young drivers are seen as higher-risk borrowers due to their lack of driving experience. Drivers between the ages of 17 and 24 are over-represented in reported road accidents, compared to those aged 25 and above. This can put off lenders when the car you’re driving is the only asset securing your loan.

On top of that, there’s the income issue. When you’re on the bottom rung of the career ladder, your wage is likely to be lower – not to mention your job being less stable. Young people have the shortest tenures at jobs with 37.7% of 18-19-year-olds spending less than 6 months with an employer on average.

Types of car finance for first-time drivers

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.

This gives you more flexibility as you can switch cars every few years. It will also cost a bit less given that you’re not paying off the cost of the vehicle itself. However, it does mean that you’ll have mileage limits like a PCP deal.

Traditional personal loans

Another option is to get a personal loan from a bank or credit union. In this case, your loan isn’t tied to the car, so there won’t be any mileage limits or other restrictions. You’ll purchase the vehicle outright then pay off your loan separately.

However, because there’s no asset (the vehicle) to secure the loan, it can be harder to get approved. You’ll still have the challenges with your credit history, income and collision risk, without the collateral to reduce risk for the lender.

Steps to apply for car finance as a first-time driver

If you’re applying for car finance as a first-time driver, there are some steps you should take to make the process easier and avoid any hiccups.

Shopping around

You’ve probably heard it a thousand times before, but it always pays to shop around for the best deals and terms. Because of the risk factors we’ve mentioned above, car finance for first-time drivers might come with a higher interest rate. You can minimise the impact of this by comparing different lenders or using a broker to find the best deal for you.

Checking eligibility

You should always check your eligibility before applying with different lenders. This includes their own criteria as well as your credit score. Applying when you’re not eligible can have an impact on your credit score, as lenders might perform a hard credit search before rejecting your application. These searches leave a mark on your credit file, so having lots of them isn’t a good look.

Choosing the right car

Make sure you pick a car that fits within your budget too. If you’re applying for finance before searching for a car, lenders will give you a maximum loan as part of your terms. If you choose a car that doesn’t fit, you’ll need to pay a larger deposit to make up the difference.

Check terms and conditions

Finally, always check the terms and conditions before entering any finance deal. This will ensure you avoid any unexpected fees for things like wear and tear, excess mileage or late payments.

How to improve your chances of getting approved for car finance

There are a few ways to improve your chances of success when applying for first-time car finance.

Build your credit score

While you won’t have a long track record of credit for lenders to look at, you can still improve your score by being responsible with money. Pay bills on time, avoid accumulating too much debt and don’t make applications on a whim. For more tips, check out our article on improving your credit score.

Make a larger deposit

We mentioned the bank of Mum and Dad earlier. While it might not cover the cost of a car in full, they might be able to help with a larger deposit. Or perhaps you’ve got a bit of money saved up yourself.

The more money you put down up front, the less risk there is for lenders. It reduces the amount you need to borrow, which also reduces your monthly payments to improve affordability.

Use a guarantor

A guarantor is someone who agrees to make repayments to your lender if you fail to make them. It’s another layer of security for lenders which makes your application more appealing. Guarantor loans are a popular option for first-time drivers, if you have a parent, sibling or friend who’s willing to back you up.

Pros and cons of financing your first car

Below, we’ll look at the pros and cons of car financing for first-time buyers.

Pros:

Affordable monthly payments

Car finance for first-time buyers is simply a clever way to stretch out your payments over a pre-set timeframe. There’s no need to fork out thousands of pounds up front – which most first-time drivers don’t have. Instead, you can break the cost of your car down into manageable monthly payments.

Access to better cars

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. It’s a great way to boost your budget and unlock access to more desirable models. With car finance, you can afford a higher-end vehicle or a new model without the need for a huge deposit.

Building your credit history

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.

Cons:

Interest and fees

It’s worth noting that car finance agreements include interest and additional fees, making the overall cost higher than the original vehicle price.

Long-term commitment

Car finance is a long-term financial commitment, which can be restrictive, especially if your financial situation changes. You should consider whether you’ll be changing jobs, moving house or making any other big purchases over the length of your repayment term.

Risk of repossession

If you fail to meet your monthly payments, the lender may repossess your car, leaving you without a vehicle. Make sure you factor in other running costs like insurance and fuel as well as general living costs to avoid overspending.

What are the best cars for first-time drivers?

There are four main factors to consider when selecting a car to finance as a first-time driver…

Insurance

The average young person pays double for their car insurance, compared to people over 35. So, you’ll want a car with low insurance premiums to keep costs to a minimum.

Fuel economy

The cost of petrol and diesel can soon stack up, so it’s best to choose an economical car to save money on running costs.

Reliability

Having a reliable car will reduce maintenance and repair costs. According to the What Car? Reliability Survey, the top contenders are Lexus, Toyota, Mini, Suzuki, Mitsubishi, Honda, Hyundai and Kia.

Affordability

Finally, you’ll want to balance all of this with your budget. Here are some of the most affordable cars for first-time drivers based on all of the above:

Volkswagen Polo
Hyundai i10
SEAT Ibiza
Skoda Fabia
Fiat Panda

Is car finance right for you as a first-time driver?

Car finance for first-time drivers has its challenges – whether it’s limited credit history, low or unstable income, or just lender caution in general. With specialist lenders, it’s possible for most first-time drivers to find a deal that suits their needs. In doing so, you can spread the cost of your next car and maximise your budget to buy something that’s more reliable.

An important part of the process is choosing between the different car finance options such as PCP, HP, leasing and personal loans. You should also think carefully about your budget, affordability and long-term financial health before making a decision.

Are You a First-Time Driver Looking for Car Finance?

If you want to get a better idea of how much car finance will cost, try our car finance calculator. Simply enter the amount you need to borrow along with your preferred repayment term and a rough idea of your credit rating, then get a handy estimate of the monthly repayments.

Need more personalised support? You can also contact our Car Credit Specialists on 01246 458 810 or by emailing enquiries@mycarcredit.co.uk.

Frequently asked questions

Can I get car finance as a first-time driver?

As long as you’re over 18, it’s entirely possible to get finance for first-time car buyers. You may need to compare deals from specialist lenders because of your limited credit history or consider a guarantor loan to strengthen your application.

What is the minimum age to get car finance?

The minimum age for car finance is 18 in the UK.

What types of car finance are available to first-time drivers?

Once you’re 18, you can choose between several types of car finance for first-time drivers, including personal contract purchase (PCP), hire purchase (HP), personal contract hire (PCH) and personal loans from a bank or credit union.

Will car finance be more expensive for first-time drivers?

Car financing for first-time buyers can be more expensive because of the increased risk for lenders – due to limited credit history, less stable income and a higher risk of road traffic incidents. As a result, lenders will often charge higher interest rates for first-time drivers to make the reward worth the risk.

Can a first-time driver get car finance with a guarantor?

Using a guarantor can increase the chance of approval for first-time drivers, but you still need to be 18+ to apply. If you make all your payments on time, your guarantor will simply be a name on your application. However, they will have to make payments on your behalf if anything is missed.

Is it better to buy a car outright or use finance as a first-time driver?

This depends on your personal preferences and financial circumstances. Buying a car outright means you’ll pay less overall, without any interest or other fees. However, it requires a large up-front payment that most first-time drivers can’t afford. Finance provides more flexibility by spreading the cost, though you do have to pay interest and there may be mileage limits and other terms depending on your agreement.

What should I consider before applying for car finance as a first-time driver?

You should consider the different car finance options – PCP, HP, leasing and traditional loans – as well as the option to buy outright. Take into account your up-front budget, monthly affordability and long-term financial health.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Does Auto Finance Work?

How Do Car Finance Calculators Work?

How Do Balloon Payments 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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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 10.9%

Evolution Funding Ltd T/A My Car Credit

Will I Get Accepted for Car Finance?

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

How to Finance a Car in 4 Easy Steps

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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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

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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 10.9%

Evolution Funding Ltd T/A My Car Credit

What Does ‘Finance’ Mean When Buying a Car?

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

Can You Get Cars on HP with No Deposit?

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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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 10.9%

Evolution Funding Ltd T/A My Car Credit

What is Hire Purchase? – Simple HP Explanation

How Much Does Car Finance Cost? Check Now!

Car Finance: A Complete 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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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 10.9%

Evolution Funding Ltd T/A My Car Credit

How Many Years in a Car Loan Term?

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

How to Refinance a PCP Balloon Payment

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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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 10.9%

Evolution Funding Ltd T/A My Car Credit

Is There a Maximum Age Limit for Car Finance?

8 Advantages and Disadvantages of a Balloon Payment

What is Hire Purchase? – Simple HP Explanation

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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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

How to Use a Car Payment Calculator – What Can I Afford?

Shopping for a new car is exciting. From choosing the make and model you like through to deciding on accessories and design features, finding a new car is serious fun. But financing that purchase might be a different matter.

After a house, a car is likely to be the second highest purchase you ever make. As such, finding the money for that purchase may seem overwhelming, as you’re unlikely to be able to pay via cash up front. That’s where car finance can help. Car finance is a credit agreement that allows you to have full use of the car. You simply pay off via a series of pre-agreed monthly instalments plus interest. There are different kinds of car finance, and the right one for you will depend on your circumstances.

One of the key tools that will help you to determine the kind of car finance you can afford is a car finance calculator, and this article breaks down how to use a car payment calculator in order to calculate the kind of loan you can afford.

How to calculate your car finance

If you’ve started your search for car finance, you may have heard of the 20/4/10 rule. Per this rule, you should use the following parameters to find car finance that works within your means:

Make a down payment (deposit) of at least 20% of the car’s value
Choose car finance for a maximum of four years
Only spend 10% of your gross monthly income on the vehicle

Limiting expenditure on the car to 10% of your gross monthly income is arguably the most important thing to remember. Within this percentage, you also need to accommodate the vehicle’s running costs, like its insurance, maintenance expenses and fuel. This will also vary depending on factors including where you live and your annual mileage, but Nerd Wallet reports that it costs an annual average of over £3000 to run a car in the UK.

Establishing the budget that you have to work with for your car finance is therefore a vital first step. It will differ from your peers depending on the above factors (namely your salary and the running costs you can expect to pay for the car). Without establishing this budget in advance, you won’t have all of the information to know what you can afford, so it’s worth doing so before you use a car payment calculator.

Remember, you can often find car finance deals that will allow you to make smaller payments over longer periods of time, but this does mean you’ll be paying more on interest. This is why putting down a large deposit can have serious advantages, as it will make your monthly repayments smaller.

To calculate the kind of car finance loan you can afford, you’ll also need to know your credit score. You can use Experian’s free credit score checker to get this.

Once you’ve taken stock of your financial situation and set out a budget you can work with, you can use our car finance calculator to get an indication of what you’ll be able to borrow from us via an APR, a monthly repayment figure, total cost of credit and total amount payable.

What’s the APR?

All of the above factors will determine the annual percentage rate of interest (APR) that you’ll pay on your car finance.

You can get an exact APR (also known as a personal APR) by filling in our car finance calculator and choosing the ‘Apply now’ button. From there, you fill in a form which provides us with your personal information and financial history, as well as the kind of deal you’re looking for. We can then give you an APR.

Find out more about car finance today

If you have further questions or concerns about car finance, you can contact My Car Credit on enquiries@mycarcredit.co.uk. Our friendly team of specialists is on hand to address any queries you have, and will help to find you a finance agreement that works for your unique needs.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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

Bank Loan or PCP: Which is Right for You?

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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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

apr apr calculator car finance calculator car finance options Jan24

Is There a Maximum Age Limit for Car Finance?

Different car finance providers will have different maximum age limits for their loans, so it’s worth shopping around to find one that will work with your needs and within your life circumstances. The main things that any potential lender will scrutinise are your credit history, your income, and the status of your licence – however, there are still ways of securing car finance even with a poor credit score.

This article details the minimum and maximum age limit for car finance, laying out factors to consider before applying, so that you can go into your car finance search as informed as you can be.

Is there a minimum age limit for car finance?

In order to secure car finance, you need to be a minimum of eighteen years old. It might seem strange that you can pass your driving test and hit the roads at the age of seventeen yet be unable to take out car finance, but there’s a reason for this.

Car finance is a credit agreement – also known as a loan agreement. This is a legally binding contract established and agreed upon by a borrower and a lender. It’s an official document that typically lays out the terms of the loan, as well as details such as the total amount due, your rights as a borrower, any conditions surrounding early repayment, a timetable of expected repayments, and repayment terms.

Credit agreements can only be entered into by those over the age of eighteen. As car finance is a credit agreement, this means that you can only secure it once you hit that age.

At the age of eighteen, you’re unlikely to have built up a substantial credit history. Depending on the car finance provider you’re looking to enter into an agreement with, you may be able to apply for a guarantor loan. This is essentially where someone else with a good credit history – for example, a family member – agrees to pay off your debt in the instance of you being unable to. Be aware, however, that guarantor loans may have a maximum age limit.

Is there a maximum age limit for car finance?

Whether or not you have car finance eligibility varies between providers. Some providers will take retirees and pensioners, as they’ll scrutinise your credit score and history. It really depends on the provider that you’re seeking a car finance deal from.

However, in most cases, the maximum age for car finance eligibility is seventy-five. That said, if you are retired, we will work with you in order to help you find car finance. It’s your credit history that really matters, as well as proof of income. This can come from either a pension, investment or property rental income.

If you are either retired or a pensioner, it’s also worth being aware that any lender with whom you enter into an agreement will likely look to minimise the term of the loan, so as to share any associated risks.

What to consider when applying for car finance

There are ways to make yourself a more appealing candidate for car finance, even if you are close to a provider’s maximum age limit.

Checking your credit report before applying for financing can help you gauge what kind of candidate you might be, which will put you in the driving seat (so to speak) during your search for car finance. Although there are ways to secure car finance with a poor credit rating, you’ll get a better deal if you’re a low-risk borrower.

Having money to put towards a deposit on the car can also make you a more attractive candidate, as it will reduce the total amount that you’re borrowing. It will therefore be more affordable overall, and your monthly repayments will be more manageable. You’re also likely to pay lower overall interest, too.

You’ll experience similar benefits if you opt for a shorter-term car finance contract, too. You may end up paying more with every monthly instalment, but you’ll save on overall interest rates.

See how My Car Credit can help you

We’re happy to work with drivers in different age groups to help you secure your dream car finance. Find out how you can kickstart your car finance journey by using our online car finance calculator or by emailing our friendly team on enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Do Car Finance Calculators Work?

How Long Does It Take to Buy a Car?

Electric Car: Lease vs Buy – Which is Best?

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 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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

age car finance eligibility car finance options considerations Jan24

If you’re looking for car finance, you’ve possibly heard of the term ‘pre-approval’. But what is car finance pre-approval, and does everyone get it?

What is car finance pre-approval?

Does pre-approval guarantee car finance?

Does everyone get pre-approved for car finance?

Why might someone not be pre-approved?

How to improve your chances of getting pre-approved

Benefits of getting pre-approved

Why choose My Car Credit for car finance pre-approval?

Car finance pre-approval FAQs

Is pre-approval the same as final approval?

Will pre-approval affect my credit score?

Can I get pre-approved with bad credit?

Can I apply before choosing a car?

How long does pre-approval last?

Ready to check if you’re pre-approved?

Rates from 9.9% APR. Representative APR 10.9%

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Require more help?

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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Related articles

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Require more help?

How do first-time drivers get car finance?

Why is car finance difficult to get for young first-time drivers?

Types of car finance for first-time drivers

Personal contract purchase (PCP)

Hire purchase (HP)

Personal contract hire (PCH)

Traditional personal loans

Steps to apply for car finance as a first-time driver

Shopping around

Checking eligibility

Choosing the right car

Check terms and conditions

How to improve your chances of getting approved for car finance

Build your credit score

Make a larger deposit

Use a guarantor

Pros and cons of financing your first car

Pros:

Affordable monthly payments

Access to better cars

Building your credit history

Cons:

Interest and fees

Long-term commitment

Risk of repossession

What are the best cars for first-time drivers?

Insurance

Fuel economy

Reliability

Affordability

Is car finance right for you as a first-time driver?

Are You a First-Time Driver Looking for Car Finance?

Frequently asked questions

Can I get car finance as a first-time driver?

What is the minimum age to get car finance?

What types of car finance are available to first-time drivers?

Will car finance be more expensive for first-time drivers?

Can a first-time driver get car finance with a guarantor?

Is it better to buy a car outright or use finance as a first-time driver?

What should I consider before applying for car finance as a first-time driver?

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Related articles

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