Car Finance Options Archives

Who are the Best Car Finance Companies in the UK?

Woman browsing car finance companies on her laptop

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

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

How we choose the best car finance company for you

Choosing the right car finance company for you depends on what works best for each person – it’s not a case of one size fits all.

First and foremost, every applicant needs to have their personal credit score assessed in order to identify suitable lenders. Some lenders work exclusively with excellent scores, while others specialise in helping those with a less-than-perfect credit history.

From there, it’s important to compare different offers to find the most favourable conditions. This comes down to your personal circumstances and preferences. Do you want the lowest possible interest rate to minimise what you’re paying overall? Or is it more important that you spread the cost over a longer period to shrink those monthly payments and boost affordability?

Be sure to research lender reputations too. We’re talking about registration with bodies like the FCA, years of experience and customer reviews. This will ensure you get a company you can trust that provides a reliable service. You don’t want to be taking chances when it comes to your finances or your car.

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

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

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

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

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

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

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

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

Dating back to 1956, Northridge Finance is part of the Bank of Ireland UK. Northridge have established themselves as one of the UK’s most trusted finance companies in the motor finance market. They were named ‘Best Independent Lender (bank owned)’ at the Car Finance Awards 2019. Whilst they provide finance across a range of sectors, they specialise in motor finance. As part of Bank of Ireland UK, they have a solid foundation you can trust in.

Fresh and innovative, Oodle joined the car finance market in 2016. Their ultimate goal is “to make buying a car as easy as buying a t-shirt on Amazon”. They are heavily focused on using technology to transform the way that people finance their cars. What’s more, they are developing a customer-first, fully integrated digital retail experience. They have a great reputation, earning them some great reviews on Trustpilot.

PCF bank has been financing customers’ cars for over 25 years. They have plenty of specialist knowledge and experience to help you with your car purchase. Since they are independent, they have no ties to any car manufacturers and so their customers have total freedom when choosing a car. They assess all applications on a case-by-case basis, offering car ﬁnance on both new and used cars between £2,500 and £250,000.

Founded in 1985, Paragon Bank plc are on the FTSE 250 and are specialists in motor finance. They offer finance on cars, LCVs, motorhomes and caravans. Furthermore, their car finance is available to homeowners, tenants and those living with parents, making them a great addition to our panel.

Launched in 2012, Startline are a flexible lender who offer specialist finance for the near-prime market. What this means is that they often approve applicants who have been previously declined by mainstream prime lenders, while still offering attractive rates and terms. This is great if you have a less than perfect credit score but don’t quite fall into the poor credit bracket.

Advantage Finance is a subsidiary of S&U plc and was founded in 1999. They are another flexible lender who are often able to provide credit where other lenders won’t. They provide a straightforward, easy to understand Hire Purchase product that allows customers to finance the purchase of new and used motor cars, vans, motorcycles or caravans from any licensed UK dealer.

Founded in 1983, Billing Finance are a privately-run, family owned, vehicle finance company. Offering hire purchase agreements, they focus on customers with non-standard credit profiles that may not fit the automated underwriting processes of other lenders. They can finance cars, motorbikes, light commercial vehicles and leisure vehicles, such as caravans and motorhomes. Billing Finance were named Best Independent Lender (Non-Bank Owned) at the Car Finance Awards 2020.

Established in 1973, Marsh Finance are an independent, family-owned finance company that offers both Hire Purchase and Personal Contract Purchase. They pride themselves on offering sensible finance by being a responsible lender. They have grown to being a leading lender in the motor finance market, including catering for those customers with impaired credit.

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

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

Of course, we must include Evolution Loans because it’s Evolution Funding’s sister company – Evolution Funding is the company behind My Car Credit. Evolution Loans lends its own money for customers looking for Hire Purchase agreements on cars and LCVs. They are often able to accept applications where other lenders have been unable to.

Zopa are probably the most unique car finance company on our lender panel. In 2005, they built the first ever peer-to-peer (P2P) lending company. Their car loan rates are often better than the dealerships and among the lowest in the market. What’s more, they’ve won awards for their customer service year on year.

Understanding car finance companies

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

Bank-owned finance providers are essentially subsidiaries or ‘brands’ run by large banks, allowing them to highlight more specialist services available to their customers. For example, the Bank of Ireland UK provides car finance through Northridge Finance.
Manufacturer-linked finance companies are those which partner with or even stem from specific manufacturers, such as Alphera Financial Services (part of the BMW Group). They typically specialise in finance for vehicles from specific manufacturers.
Finally, there are independent finance providers. These companies have been founded specifically to help customers finance their car purchase. Like banks, they provide finance for a wider range of vehicles.

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

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

Above all else, their goal is to help you facilitate your vehicle purchase with tailored financing solutions. Finance companies don’t offer set packages or loan amounts. They give you the money you need to buy your next car, then work out a repayment plan for your preferred term.

While you might want to select a finance company quickly to get on with the process, it’s vital to spend a little more time on this step. Your choice of finance company will impact your loan terms, how much you repay and your overall satisfaction.

The importance of choosing the right finance provider

Why does your choice of finance provider matter so much? Because they vary in terms of the services they offer and the quality of those services too.

With the wrong finance provider, you could end up paying over the odds for the car you want and need. The same vehicle might be much more affordable with a different provider – but you’ll never know.

Even worse, unsuitable finance companies may simply reject your application. Without finding a company that specialises in poor credit scores, for example, you could fall at the first hurdle time and again. This can impact your credit score negatively over time, which can put off other providers. Not to mention that it wastes your time and leaves you feeling frustrated.

Ultimately, you’ll want a trusted car finance provider to make the whole process easy and convenient too. Good car finance companies know what they’re doing. They can help you through the process and communicate everything clearly. This extends from the application process to their terms and conditions – which should be completely transparent.

Let My Car Credit match you with the perfect finance provider

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

At My Car Credit, we do all the legwork for you! As part of Evolution Funding, we work with the largest panel of trusted lenders out of all UK car finance brokers. This allows us to find tailored car finance solutions. Our team will compare deals on your behalf, but that’s not all.

Our smart soft search technology allows us to check your application against all these companies in one go, without impacting your credit score. We only use a soft search initially, so your credit file will only be impacted when lenders use a hard credit search further down the line.

All of this means that you can compare different car finance companies and their deals without having to spend hours and hours researching providers and filling in applications. The results come back through to us in seconds and the best deal available for your circumstances wins your business! As a car finance broker, we don’t have any vested interest, so you can rest assured that you’re getting the right deal for your circumstances.

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

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

3 Benefits of Car Finance Even If You Can Buy Outright

A mistake that motorists often make is to assume that they don’t need car finance because they have the cash in their bank accounts. If you’re in the market for a new motor, you might not know whether it’s better to buy a car outright or with finance since there are pros and cons of each.

While buying outright seems the obvious choice, it’s well worth considering the latter option since finance deals provide many more features that you might not have factored into your decision. After all, it’s easy to focus on one dimension. Read on as we look at three benefits of car finance even if you can buy outright.

Spreading the cost

Paying a lump sum amount upfront isn’t always a savvy choice, especially if you don’t have the liquidity to react to emergencies. Picture the scene. You’ve just purchased a car with your savings and own it outright. But the week after, your boiler breaks down and you need to splash the cash again to fix it.

The average person can’t afford to keep on throwing substantial amounts of money around, particularly if it’s the end of the month. Thankfully, using car finance means you can spread the cost of the car over an extended period, letting you pay off the full amount monthly. As a result, you can keep the extra cash in your emergency fund for an inevitable rainy day. Our car loan calculator even helps you to crunch the numbers beforehand so that you know exactly how much you’re paying per month.

Flexibility

Of course, not every car deal goes to plan. When you own a vehicle, there’s nothing you can do about it if you fall out of love or the motor isn’t what you wanted. In short, you’re stuck with an expensive asset. Car financing is different as there are several options at your disposal.

For example, Personal Contract Purchase deals (PCP) are designed to give you the option to sell your vehicle back to the dealer at the end of the contract. With a balloon payment, you can either decide to pay it off in full or hand it back. If you do the latter, you can upgrade to a newer model, making PCP an excellent way to drive a different vehicle every couple of years. Alternatively, Hire Purchase (HP) lets you decide how long you want to pay back the loan. It could be three years or five, depending on the premiums and your disposable income.

More freedom

There’s a wide array of cars to choose from, and you don’t want your budget to get in the way. When you rely on your savings, this is bound to happen because you will find makes and models that are out of your price range. It doesn’t matter whether it’s £100 or £1,000 as you can’t magically generate the funds out of thin air.

With car financing options, your budget is greater because you can spread the payments out more, which means you can generally afford more. Therefore, you’ll be less likely to be bound to your budget if you come across a dream vehicle that is more expensive than you anticipated.

Car finance vs buying outright

If you’re stuck between buying a car outright or financing, the experts are My Car Credit can help you get a clearer idea of the finance options at your disposal. Working with a large network of leading lenders, we can find you a great finance deal that’s tailored to your circumstances and requirements. Don’t hesitate to call our team to find out more.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Leasing vs Finance: What’s the Difference and Which is Better?

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 Jan24 payment options

Can You Buy Campervans on Finance?

While COVID-19 travel restrictions have undeniably boosted caravan and motorhome sales, the “staycation” trend was gaining momentum long before the pandemic. The latest figures from the National Caravan Council reveal motorhome sales have tripled since 2000, with more than 220,000 recreational vehicles now registered on British roads.

From Snowdonia and Peak District to Cairngorms and South Downs, it’s no surprise Brits want to get outside and explore their own backyard. But campervans can be a big investment with the average cost of a new motorhome ranging from between £45,000 and £80,000.

While there are big savings to unlock with second-hand models, you’re still looking at a significant investment for a reliable and comfortable vehicle. Most people know that it’s possible to buy a car on finance but can you buy campervans on finance?

Boosting your campervan budget

With a typical British household saving just over £2,000 per year, most motorhome enthusiasts don’t have the financial freedom to purchase a recreational vehicle outright. Cue the entry of car finance. Designed to get you behind the wheel of a motorhome as soon as possible, finance boosts your spending power and allows you to purchase the motorhome you’ve been dreaming of.

That’s where My Car Credit comes in. Backed by industry-leading car finance broker Evolution Funding, we get you access to the country’s largest lender panel. This allows us to secure the best deals on motorhome finance, no matter what your budget or unique circumstances. As the customer you always come first, a philosophy that’s won us ‘Best Broker’ in the Car Finance Awards for five years straight.

The importance of APR

Purchasing campervans on finance tends to be more expensive than buying a car. The larger outlay makes it even more important to secure the best finance deals. Whether you’re borrowing £5,000 or £25,000, your Annual Percentage Rate (APR) can have a big impact on the total cost of your motorhome.

For example, borrowing £15,000 over a five-year period with APR of 6.9% would result in a total payable amount of £17,695. As well as repaying the £15,000 loan you’re also paying £2,695 in interest. A higher APR of 13.9% would significantly increase your total cost of credit to £5,552 and leave you with a total repayable amount of £20,522. Whether you’re buying new or used, it pays to shop around for the best deals when purchasing campervans on finance.

The best motorhomes of 2021

Dreaming of hitting the road in a new campervan? To get you inspired we’ve put together a roundup of some of the most exciting new motorhomes hitting the British market in 2021.

VW T6.1 Treago by Bodans

Volkswagen is the grandaddy of campervan brands so it’s only fair we include a VW in our list of the best motorhomes 2021. Manufactured by Shropshire-based van conversion company Bodans, the VW T6.1 Treago by Bodans comes with a price-tag of £42,600 and is packed with travel-friendly features. Not to mention some great customisation options, including upholstery, body styling, paint colour and accessories.

Ford Transit

If you’re looking for a quality campervan at a great price, the Ford Transit is your model. Eternally popular with second-hand buyers, these usually go for anywhere between £5,000 and £18,000 depending on condition, mileage and features. Whether you’re hitting the road with the kids for a half-term holiday or planning to embrace the #vanlife with your significant other, the Ford Transit keeps things spacious, flexible and best of all, affordable.

Roller Team T-Line 743

Featuring four berths, a chef-inspired kitchen and loads of natural light, the Roller Team T-Line 743 combines luxury, style and comfort. Storage is incredible, making it ideal for larger families. It’s a splurge at £57,100 for the base model but once you get behind the wheel, you’ll realise this motorhome is in a class of its own.

Alpa A9820-2

Marketed as an apartment on wheels, the Alpa A9820-2 reimagines the limits of a motorhome. At nine metres long, there’s plenty of space for the luxurious C-shaped rear lounge and enormous central kitchen. Whether you’re beach-hopping in Cornwall, sailing through stunning mountain passes in the Lake District or immersing yourself in the wild and rugged scenery of the Scottish Highlands, the Alpa A9820-2 will get you there in style. There’s a big price tag to match so if you’re thinking about investing in an Alpa A9820-2 it’s essential to shop around for the best APR rates and finance deals on campervans.

Buying second hand can be a great way to save but it’s important to get your vehicle checked out by a mechanic before committing to a purchase. A lower price can translate to bigger maintenance bills down the lines so it’s best to stay level-headed and make an informed decision based on condition and performance, as well as price.

Calculating your spending power

Want a quick glance at what kind of finance deals on campervans you could be looking at? Our car loan quote calculator gives you an estimate in just minutes. Simply punch in your loan amount, preferred repayment term and credit rating. We’ll then calculate your estimated Annual Percentage Rate (APR) and the total payable amount, including interest. This is a great way to gauge how far your budget will stretch and what makes and models you can afford.

Finance for all circumstances

Got a less than ideal credit score? Don’t let that stop you from enjoying the great outdoors. We work with a large panel of lenders across the UK, allowing us to secure finance deals on campervans for applicants with credit scores of every calibre. Whether you’re looking for a sleek and luxurious Swift Kon-Tiki Sport 2021 model or a pre-loved and well-travelled Bessacarr, we have you covered with the best campervans on finance deals.

With local travel restrictions easing and vaccination rates on the rise, there’s never been a better time to start shopping around for your dream caravan. Securing car finance before you start browsing makes the process much easier and more enjoyable, giving you in-depth insight into your budget, spending power and monthly repayments.

Rates from 9.9% APR. Representative APR 10.9%

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 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

campervan leisure motorhome

What’s the Best Way to Compare Car Finance Deals?

Woman using laptop to compare car finance

Purchasing a car is second in expense only to a house. Whether you’re looking for a brand new, nearly-new, or respectably used car, it’s likely that you’ll end up spending a significant portion of your hard-earned cash on the vehicle. That’s why finding the right car finance is a vital step in the search. What's more, knowing how to compare car finance deals will help too. This is because with the right deal, you’ll be able to budget for the vehicle, and know when and how much you need to pay out.

But with so many car finance providers out there, it can be incredibly overwhelming knowing where to begin your search. Not least because traditional methods of car finance – that is, getting a deal via the dealership from which you’re purchasing the car – is often still a viable form of securing car finance.

Car finance: online or dealership?

Traditionally when buying a car, buyers would turn to the dealerships from which they were planning to purchase the vehicle for their car finance. With the increased digitisation of products and retail, however, customers have become savvier towards alternatives. In addition, customers are more aware of the disadvantages this poses for getting the best deals.

Where dealerships only have a few lenders to go to, they may be limited by what deal they can offer you. What’s more, they may also struggle to find you finance if you have a less than perfect credit profile.

With the boom in online car finance comparison websites, however, you get more choice and flexibility when you compare car finance providers. With deals from lots of different lenders being compared, you’re more likely to get a great deal, no matter what your credit score.

The fallout of the pandemic also makes online car finance comparison far more attractive. You no longer need to travel in person to visit different dealerships and compare various car finance options. Instead, you just need a connection to the internet and a device in order to search for your best choice. So not only is it less time-consuming and more flexible, it’s also a safer all-round experience.

How to compare car finance deals

Comparing car finance online is one step forward for customers. But online car finance brokers can make things even easier. Comparing car finance deals through a dedicated broker saves customers time, money, and hassle. More over, it allows you to take back the wheel and find a deal that suits your needs and requirements. It also means you can consider the deal you’ve been offered without any pressure, from the comfort of your own home.

This is where My Car Credit helps customers across the UK. We are consistently told by customers that our online car finance calculator makes the process of comparing car finance options more streamlined. It’s designed to help you, so is super speedy and straightforward – our goal is to get you a deal that suits you, with no pressure and no obligation to go ahead.

Using our car finance calculator, you input the car loan amount for which you’re looking, and your preferred repayment term. From there, we’ll ask you for some personal information, like your email address and employment details. Next, we’ll perform a soft search credit check, but this won’t affect your score. Finally, our complex algorithm matches your unique circumstances and needs with the right product and lender for you.

We have the largest panel of car finance lenders out of any broker, so you have the best platform possible from which to conduct your search. It also means that you’re more likely to be accepted for car finance, as you know your parameters from the get-go. We also won’t suddenly change the terms of the deal – so long as you give us all the right information when you apply, the rate you see is the rate you get.

Check for car finance deals today

Comparing car finance has never been easier, thanks to My Car Credit. Our online application system can find the best car finance deal from our panel of lenders in minutes. And if you have any questions, or simply prefer to speak to a human, our friendly team of car credit specialists can guide you through the process, easing any concerns you may have and addressing queries. Call us on 01246 458 810 to find out more.

Rates from 9.9% APR. Representative APR 10.9%

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 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 calculator compare

How to Calculate Finance on a Second Hand Car

New cars might stand out for their state-of-the-art features and ‘new car smell’, but used cars have plenty of their own benefits too. There are more second-hand motors on the road than ever before, which means you could find yourself in a position where you want to purchase one. However, there are some myths surrounding the industry, the main one being that they’re so much cheaper than brand new, so you can afford to buy a used vehicle outright.

In reality, most people can’t since second-hand cars are still quite expensive. Despite being much more affordable than brand new models, you’re still looking at a total of several thousand pounds, which exceeds most people’s rainy-day fund. Thankfully, second-hand car finance makes it more affordable to buy a used car and make a substantial purchase less substantial.

Still, you need to know how much the deal will cost before you sign on the dotted line. Otherwise, the agreement might not be suitable. With that in mind, here’s how to calculate finance on a used vehicle.

Can you get finance on a second-hand car?

There’s a perception that second-hand car finance isn’t available because of the cost of used cars. According to Money Saving Expert, new motors depreciate at a rate of 27% in the first 12 months, meaning vehicles that are only twelve months old are much cheaper than their counterparts.

Yet, 27% might mean that the value is still above £15,000 or £20,000, which means you’re going to need help from a lender. Turning to car finance is essential as the deals are designed for drivers’ needs. It’s worth remembering that private sellers won’t offer the service as they simply want to offload the vehicle and make a small profit.

Of course, you’re not guaranteed to be accepted just because you applied. There are factors that determine the outcome, so let’s take a look at a few:

Credit rating

Your credit rating, or credit score, is the first thing lenders will look at before signing you off. If it’s not high enough, you might need to take certain measures to boost it, such as paying bills more punctually or avoiding hard checks. Another option is to use your credit card more regularly because you might be rejected if you don’t have any evidence of your spending habits.

The length of the deal

A longer agreement will play into your hands. Typically, car finance deals can range from anywhere between three to seven years, with six being the average. While you will pay extra the longer it lasts, the monthly payments are smaller because they are stretched over 72 months instead of 36 months.

Size of your downpayment

You can lower your finance premiums by putting down a bigger downpayment. The deposit reduces the risk for lenders and therefore can lower the rate you pay. After all, they already have a portion of the loan back, depending on the size of your deposit. However, it’s worth mentioning that you don’t need to pay a deposit to take out car finance.

At My Car Credit, we know how important it is for our customers to be accepted. That’s why we analyse a range of factors before deciding, and why we’re always happy to offer help and advice to any applicants.

How to calculate second-hand car finance

We understand that numbers can confuse people, which is why lots of motorists decide to avoid second-hand car finance in the first place. It can seem too complicated, so they steer clear of what they don’t understand.

That’s a healthy strategy. However, you don’t have to fall into this category because working out the cost of car finance is simple. You only have to do the following:

Take the cost of the car
Divide it by the number of months in the agreement
Add in the rate of interest

Once you have done that, you can clearly see how much you will pay overall and at different periods throughout the deal. For example, you can see the monthly fees, and use them to calculate your overall incomings and outgoings. As a result, you will know whether a second-hand car is affordable in a matter of minutes!

My Car Credit’s car finance calculator

To make matters even easier, at My Car Credit, we have developed a car HP calculator that takes all the stress and confusion out of the process. Whether you want to know how much your monthly payments will be or how much car finance you qualify for, our online tool does the maths on your next car for you in seconds. Just type the relevant details into the easy-to-use interface and let the calculator do the rest.

If you want to learn more about how My Car Credit can help you land the second-hand car finance deal of your dreams, please don’t hesitate to contact us right away.

Rates from 9.9% APR. Representative APR 10.9%

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 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

second hand car used car

Can I Take Over Someone Else’s Car Finance?

Car finance is becoming an increasingly popular method for people looking to buy new or used cars. It’s easy to see why – by paying the car off in a series of affordable monthly payments, the whole process becomes far more manageable and cost-effective.

At My Car Credit, we’re often asked whether customers can take over somebody else’s car finance. Below, we give you the lowdown on that. What’s more, we provide recommendations for finding both a new set of wheels and a car finance deal that suits your budget and needs.

Can I take on a car with outstanding finance?

Unfortunately, taking on a car with outstanding finance isn’t possible. If a car has remaining fees on it, it technically still belongs to the lender, which means a private seller can’t sell it on. The original seller will have to settle the outstanding balance before selling the vehicle on – if they don’t, they could face severe penalties.

They can do so by contacting their original finance company and asking them for a settlement figure. Once this has been paid, the car is then legally theirs to sell on, which means that you’re free to purchase it. But is it possible to get car finance on private sales?

Car finance for private sales

Many people assume that you can get car finance for private sales much like you would with a dealership. Whilst there are lenders who can help with car finance on private sales, they often require more paperwork and reassurances. Alternatively, you could take out a personal loan to pay for the car upfront. Instead of providing car finance on private sales, we advise searching for your new set of wheels via a reputable UK dealer.

There are so many advantages to going down this path. Finding a vehicle via a dealership doesn’t necessarily mean you’re paying for a brand-new car – you can unearth some excellent nearly new and used cars in our one-stop shop of recommended dealerships. We’ve vetted over 4,500 nationwide car dealers for their service standards and financial stability. Hence, you can rest easy knowing that you’re in good hands.

Choosing a car through one of these motor dealers also helps when it comes to applying for My Car Credit car finance (although you can get a car from any reputable dealer). Our friendly team of car credit specialists will support you throughout your application process. In addition, we’ll offer expert advice and guiding you through every step of the way.

Plus, with our system, the rate you see is the rate you get – there’ll be no hidden fees or costs for you to worry about. Our online application process takes mere minutes to find a rate that suits your individual requirements. This means you can get behind the wheel with peace of mind.

Contact us today

My Car Credit is committed to making the process of finding car finance more affordable, accessible, and quick. You can use our car finance calculator to discover your options, or contact one of our friendly team today on 01246 458 810.

Rates from 9.9% APR. Representative APR 10.9%

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 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 take over take over finance

Can You Finance a Car from a Private Seller?

Car purchased via a private sale being driven at night

If you’re searching for your next nearly-new or used car, there are a number of places you can look. From Auto Trader to Gumtree and even Facebook Marketplace, sourcing your next vehicle via a private seller may seem like a breeze – but can you finance a car from a private seller?

When you buy your car via private sale, you may benefit from more affordable overall price points. However, the financing process for private sale is more complicated.

Plus, when you access car finance through a dealership rather than an individual seller, you’ll gain access to a range of financing agreements offered either by the dealership itself, car finance companies or brokers like My Car Credit.

This guide will review everything you need to know when it comes to car finance for a private sale. We’ll cover the risks of financing a car from a private seller, helping you find a better, safer route to car ownership.

What is private car finance?

Private car finance allows you to borrow money to buy a car from an individual private seller rather than a dealership.

With private car finance, the lender pays the seller directly. As the car’s purchaser, you’ll then repay the lender in installments.

Typically, private car finance agreements require more paperwork and background checks than non-private car finance. These checks can include confirming the vehicle’s mileage and checking its V5C, as well as ID verification and a vehicle history check (HPI). The checks are carried out to confirm that the vehicle is legally available for sale and doesn’t have any outstanding debt still attached to it.

Certain lenders do offer ways of financing a car from a private seller. However, not all finance providers offer this option. You may therefore need to arrange alternative forms of finance – such as a personal loan – if you’re looking for private car finance.

Be aware that when you’re buying a car in a private sale, you won’t benefit from the same level of cover or protection offered through other car finance providers, including dealerships and brokers like My Car Credit.

Dealerships can also offer guarantees or warranties as part of their car finance offerings, which you won’t receive via private sale car finance.

At My Car Credit, we only work with a network of trusted dealers. That ensures our car finance options are secure, supported and flexible – especially compared to loans you’ll find for private vehicle sale.

Is it possible to finance a car from a private seller?

Some car finance lenders offer private sale car finance.

However, any company providing a car loan for a private seller will want to conduct a thorough check of the vehicle to confirm that it’s entirely legal for sale. In other words, you’ll face more restrictions for private sale car finance compared to car finance secured via a dealership or other financial institutions.

The types of restrictions you can face when looking for private sale car finance include:

Stricter checks on the vehicle itself, including of its mileage and the V5C logbook
More thorough HPI inspections – which you might need to arrange yourself
Less buyer protection compared to non-private sale car finance

Many car finance brokers – including My Car Credit – do not currently offer finance for private sellers. Here’s why…

Why most finance providers avoid private seller car loans

Many auto finance institutions avoid private sale car finance for a number of reasons.

The condition of the vehicle for sale may be unclear, with limited comeback if there’s a problem.

Unlike dealerships, private sellers also offer no guarantees or warranties. Plus, because the seller process isn’t FCA-regulated, there’s less buyer protection and payment security, meaning you’re at a higher risk of fraud.

Lenders also take on more risk when they finance a car loan for a private seller. As the vehicle’s buyer, this can lead to higher interest rates for you, or a higher risk of eligibility refusal in the first instance.

Can you privately sell a car on finance?

You cannot legally sell a car if it has outstanding finance on it. You don’t technically own the vehicle until the final finance repayment has been made – the lender is still its legal owner.

As such, if you sell the car without clearing the finance and any outstanding fees in full, selling it privately is illegal and could even lead to repossession.

If you have plans to privately sell your financed car, contact your finance provider. They should be able to offer you a settlement figure – also known as an early exit fee – which is the amount you can pay to end your finance agreement early.

What happens if I sell a car with outstanding finance?

If you privately sell a car with outstanding finance on it without telling your finance provider, you’ll face consequences.

You may face legal consequences for misrepresenting the car’s ownership. The vehicle’s new buyer also risks losing the car if the lender reclaims it.

There are ways to return a financed car. That said, you should always settle the finance in full before selling it on, or use a dealership to ensure you trade it in legally.

A better alternative: finance a used car from a trusted dealership

With My Car Credit, you can benefit from securing your next nearly-new or used car and your car finance in one go.

Our one-stop shop of pre-approved, quality used vehicles will grant you access to great deals on nearly-new vehicles from trusted dealerships.

With an extensive network of vetted partners across the UK, we’ll give you access to competitively priced used vehicles. That way, you enjoy greater protection and warranties, and will benefit from regulated support throughout the process.

Plus, with car finance from My Car Credit, you’ll be offered a no-obligation quote that’s tailored to you. We work with the UK’s largest panel of lenders, and won’t use pushy sales tactics or confuse you with hidden fees.

We’ll also offer you soft search pre-approval, meaning it won’t impact your overall credit score.

The benefits of dealer-based car finance with My Car Credit

Compared to a car loan for a private seller, you can expect to benefit from our car finance in the following ways:

Safer transactions – With regulated sellers, you benefit from legal protections
Wider choice of lenders – We’ve got the broadest lender panel of any UK broker, meaning you face a better chance of approval
Expert support – We handle all paperwork and negotiations, offering professional support and advice throughout the application process
Faster decisions – Our application process is all online, so you get results quickly
Peace of mind – Car finance from My Car Credit means you benefit from warranties, MOT checks and return options

How our online car finance process works

Step 1: Apply Online

Complete our online application form in mere minutes, outlining your circumstances and the type of agreement you’d benefit from
An initial soft search means no impact on your credit score

Step 2: Get a Personalised Offer

As part of the UK’s largest motor finance broker, we’ll find the best deal for your credit profile

Step 3: Choose a Car from Our Network

Use our My Car Search to find used cars from trusted, approved UK dealers

Step 4: Drive Away Confidently

Secure, simple, stress-free – take to the road in ease and style

Private seller car finance FAQs

Can you finance a car from a private seller?

Some car finance providers do offer private sale car finance. In order to ensure the total legality of the sale, remember that you’ll face more background and vehicle checks if you opt for a car loan for a private seller.

Why is private car finance riskier?

Private car finance is riskier because you won’t benefit from the same level of buyer protection or payment security offered in dealer- or broker-based car finance. Plus, with car finance from a provider like My Car Credit, you can take advantage of other advantages like guarantees or warranties, too.

Can I still get finance for a cheap used car?

Many car finance providers offer car finance for nearly-new and used cars. At My Car Credit, we offer fast and fair used car finance for drivers with all credit profiles and vehicles at different price points.

What if I have bad credit?

Poor credit car finance is offered by many car finance providers, including My Car Credit. We’ll consider all circumstances, combining a wide panel of trusted lenders with a sensible approach to help you find the most suitable agreement for your needs.

What’s the alternative to buying privately?

You can secure your next car from trusted dealerships or vetted resources like our My Car Search. You’ll benefit from expert support and access greater buyer protection, warranties, and guarantees compared to buying privately.

Ready to finance your next car the smart way?

Securing a car loan for a private seller is possible with some car finance providers. At My Car Credit, we don’t support private sale car finance due to the associated risks and lack of buyer protection.

Dealer-based car finance with us is a safer, simpler and more supported option. Use our car finance calculator to discover the kind of agreements you could benefit from, or kickstart your application today by filling in our online form.

Rates from 9.9% APR. Representative APR 10.9%

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 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 private private sale

What Types of Finance Are Available for Used Cars?

Buying a car is likely to be one of the most significant purchases you make. Even for a second-hand model, a car represents a sizeable outlay. For this reason, many people choose to seek help in the shape of car financing. This can not only allow you to afford a better vehicle, but give you greater control of your finances, as well.

To meet this growing demand, there are now a number of different used car finance deals available. These include hire purchase, conditional sale, personal contract purchase, personal contract hire, personal loan and guarantor loan. The best way to finance a used car will vary from person to person, depending on their unique circumstances.

Used car finance deals

Our quick guide should give you a better idea of the options available and allow you to make an informed decision about whether to buy or finance your next vehicle purchase. Read on for a quick rundown of the types of used car finance on the market today.

Hire purchase (HP)

As one of the simplest types of car finance available, HP is also one of the most popular. Under this arrangement, you’ll pay an initial deposit, then hire the vehicle until you have paid for it in full. In addition, you’ll spread the remaining cost over a pre-agreed number of monthly instalments. There is no large payment at the end (as there is with PCP) but you may have some admin and transfer of rights fees to cover. Once you’ve paid the agreement off in full, the vehicle then becomes yours.

Conditional sale

A conditional sale arrangement is similar to HP. However, the monthly payments are usually higher but there are no fees to pay at the end. The ownership of the car will automatically transfer to you once the final loan amount has been paid.

Personal contract purchase (PCP)

PCP finance for used cars works on the same principles as HP. However, the difference is that a significant chunk of the total price of the car is held back for an optional final payment. That means that the monthly repayments can be a lot lower, making it easier to afford a newer or higher value vehicle.

At the end of a PCP finance for used cars deal, you will have a choice of three options. You can pay the final sum and own the car outright. Alternative, you can use any equity in the contract as a deposit for your next vehicle. Of course, you can simply walk away from the deal altogether. This can be a helpful option for those who aren’t sure if they would like to keep the car after the contract has run its course.

Personal contract hire (PCH)

PCH is essential a long-term leasing arrangement, whereby you pay an initial deposit and a series of monthly instalments thereafter. You must also adhere to a maximum annual mileage allowance. Bear in mind, you may face a hefty fee if you leave the contract before it has reached the pre-agreed expiry date.

Personal loan

A personal loan is similar to one you might obtain from a bank and will depend largely upon your credit score. The loan is not secured against the car itself. This means you can sell the car at any time as long as you continue to keep up with the repayments. You’ll also own the car outright from the get-go.

Guarantor loan

Aimed at those with a poor credit score, guarantor loans involve a third party who is liable for covering repayments that you yourself may not be able to. This is ideal for those who struggle to be approved for finance in general. What’s more, when adhered to responsibly, a guarantor loan can help to improve your credit rating. However, it is a big responsibility for both parties as both become liable should you not keep up with repayments.

Take stock of your options

The best way to finance a used car for you will depend greatly on your own personal situation. You’ll need to consider the type of car you wish to buy, whether you want to own it outright after the deal is concluded and what your credit history looks like. With that in mind, it’s a good idea to sit down and assess the options available to you. You’ll discover a vast resource on the internet to understand which type of finance is best for you.

In this respect, a car finance calculator can be a very helpful tool too. This will help you to understand how much you’ll be liable to pay throughout the course of a car financing contract. On the other hand, if you’d prefer to speak to a qualified professional and obtain advice about the best course of action for your situation, our team are always here to help.

Simply give us a call on 01246 458 810 or drop us an email at enquiries@mycarcredit.co.uk and we’ll get back to you at our earliest convenience. Your next dream car could be just a phone call away!

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Will I Get Accepted for Car Finance?

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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

finance options Jan24 used cars

Can I Get a Car Loan with a Poor Credit Score?

Car driving bought with a low credit score loan

It’s common for lenders to carry out a credit check on anyone who applies for a car loan. This is usually a ‘soft search’ initially. Credit checks can lead to those with poor credit scores shying away from applying due to the fear of rejection. However, you’ll be surprised how easy it is to successfully obtain a loan by making a few minimal changes.

In this short guide, we’ll explain everything you need to know when applying for a car loan with poor credit. In addition, we’ll cover how to get the best deal by ensuring your credit score is up to scratch.

What is a car loan?

Finding the right car within your price range can be a challenge. But, with a car loan, you can spread the payments out over a course of several months or years. This is a great way of significantly increasing the options available to you.

Two popular forms of car loan are a personal loan and Hire Purchase (HP). A personal loan will see someone borrow money from a lender, bank or building society. This allows them to have instant ownership of a car. In contrast, HP will have the individual pay an initial deposit (not always required) with fixed monthly payments for the next three to five years. They effectively hire the vehicle over the period, with the option to purchase at the end.

At the end of the term, they will be offered three choices; to either return the car to the supplier, keep it, or trade it in for a replacement. However, you must be careful not to miss the repayments before the end of the term. In these cases, the finance company may decide to repossess the vehicle to settle the debt.

How can you improve your credit score?

A lender will perform a credit check to ensure that the person applying can afford the monthly payments. People who obtain an excellent credit score will have demonstrated a firm grasp of their finances. In theory, this makes for a reliable choice for lenders.

Those described as having a ‘thin’ credit history will have a history of missing payments. Alternatively, there may be little concrete evidence of financial security, such as never owning a credit card or bank account. A higher credit score will open more doors. This could include a much more comprehensive range of car loan options. These are often accompanied by much more favourable interest rates.

Here are some simple but effective ways of raising your credit score.

1. Identify the problems in your credit report

Before you apply for a car loan, it will be wise to get a free copy of your credit report. This will give you an idea of any pitfalls that may scupper your loan request. There may be some glaring mistakes you are making in the way you handle your money, damaging the profile. It is also worth ensuring it is up to date and doesn’t contain any errors or inaccuracies which could unfairly affect your score.

2. Apply for a credit card and use it sensibly

Credit cards have a strange reputation of being a poor way to save money. But the truth is that as long as you’re making repayments on time, they will put you in good stead to improve your credit score. Proof that you can budget and regularly meet repayment deadlines will help you secure a more competitive car loan deal.

3. Stay away from bad credit

If you’ve ever been financially linked with someone you know has bad credit, such as a joint account or shared mortgage, it may lower your credit score. If this is the case, it will be a good idea to issue a notice of disassociation. This informs lenders that you are no longer financially linked and should be judged on your own merit.

4. Settle any loans

Now is the time to settle those loans and reduce your debt as much as possible. This is easier said than done, but to get behind the wheel of the car you desire you may need to work at it.

What are my other options for obtaining a loan?

Start by crunching the numbers on a car loan calculator. You may consider making slight changes to the car loan variables to see how it can help. No matter how low your credit score, some changes can ultimately work in your favour to help you get a car with poor credit history.

1. Pay a larger deposit

Simply put, a larger up-front deposit will mean your monthly payments will be reduced. This in turn minimises the risk for the lender in ensuring they are met. It can be frustrating as you’ll be forking out a potentially huge chunk of money. That said, it is often a sure-fire way to improve your chance of getting the deal.

2. Pay a higher interest rate

Someone with a low credit score will often need to accept a higher interest rate than the advertised representative rate. Again, it may seem frustrating on the face of it. However, don’t despair as it tends to mean only a slightly higher monthly payment.

3. Choose a lower annual mileage limit

Opting for a lower annual mileage limit can result in much lower costs month to month. This is because the car will be worth much more to the dealer at the end of the loan. This is usually related to fewer miles on the clock and less wear and tear.

However, you will want to keep the figure realistic. Going over your allowance will end up costing you dearly. You will find that there are harsh penalties that charge you for every extra mile taken.

4. Choose a used car

Opting for a loan on a used car will ultimately see you borrowing less money from a provider. This improves the possibility of obtaining a loan, even with a poor credit score. There is much less risk for the dealer as the car will already have depreciated in value. However, this doesn’t deflect from the fact that used cars are mostly reliable and of good quality.

If you worry about being able to afford to buy a car, this may be the best and most sensible option.

Need help getting a car loan with a poor credit score?

Take the headache out of getting a car loan with a straightforward and simple chat with our friendly specialists. Find out more about how we can find the right deal for you no matter how your credit score may look.

You’re not in this on your own, and we’ll support you every step on the way to get you on the road with the car of your dreams. Give us a call on 01246 458 810 or email enquiries@mycarcredit.co.uk to find out more

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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PCP: Is It Worth It?

What Happens if I Can’t Pay My 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 loan credit score Jan24 poor credit

No Deposit Car Finance – How Does it Work?

New car bought with no deposit car finance

You’ve fallen in love with the perfect dream car, it’s ready to go and you’re raring to drive it straight off the forecourt. Only one problem remains – paying for your new wheels.

Car finance offers the perfect solution for buying the car of your dreams without needing to use your savings and pay in one go. You get the option to pay your car off in manageable monthly payments, over a period of your choice.

However, some people do worry about needing to find a deposit. This is typically a large chunk of the overall payment and if you do not have a car to trade in, it can be unaffordable for some.

Luckily, you can now get car finance without having to pay an initial deposit. Read on to discover how this works and whether you could get no deposit car finance.

The types of car financing

Car financing is a very common method used when buying a car. For the majority of us out there, paying for a car outright is unrealistic, especially if you’re looking to get a new vehicle. Car financing gives you the option to pay off the cost of your car monthly, rather than paying the cost in one go. There are a few different types of car financing available that you can choose from, with the main two being hire purchase and personal contract purchase:

Hire purchase (HP)

Hire purchase is one of the most popular car financing methods. You can either set up an HP deal with your car dealer directly or with a third party broker or lender. Generally, you may get a better deal with an external company than the car dealership so it’s good practice to shop around.

With many car finance options, a deposit of around 10% of the purchase price is required to secure the financing – we’ll get to the zero deposit options later in the article.

HP contracts can last anywhere between two and five years, with monthly payments, plus interest, paying off the value of the car. Once your contract is up and you have completed all your payments, the car is yours. You may have to pay a final payment that is higher than your monthly cost to secure the vehicle, but this will be agreed when buying the car so there will be no hidden surprises.

So, once your contract has come to an end and all payments have been made, you are then the owner of the car and can do with it whatever you please.

Personal contract purchase (PCP)

A personal contract purchase (PCP) is similar to a hire purchase in many ways. The car is paid off in monthly installments rather than one lump sum. You have the option of paying a deposit, which does reduce your monthly payments and overall interest. Despite their similarities, there is one clear difference between HP and PCP car financing deals.

With a HP agreement, you are paying off the full value of the car each month and so at the end of the agreement, you own the vehicle. However, with a PCP agreement, you are only paying off the depreciation of the car each month, rather than the full value.

So, you are essentially paying the difference between the car’s value when you purchase it and the estimated value of the car at the end of the agreement. In essence, you are renting the car from the dealership for a set number of years. At the end of the contract, you can make a choice between paying a lump sum to keep the car, trading in the vehicle for a newer model or returning the car entirely to the dealer.

No deposit car finance

So, now we’ve covered the two most popular forms of car financing, it’s time to take a closer look at how you can secure a car finance deal without having to fork out the initial deposit. It sounds too good to be true, right? Driving away in your dream car without having to pay a penny upfront. But it is in fact a reality.

Due to the huge competition out there when it comes to car financing options, from car dealerships to independent companies, there are a number of deals now available to allow companies to stand out from the crowd.

Typically, the best no deposit car finance deals are found from third party companies. This includes car finance price comparison websites such as Confused.com, which compare the best deals from across the market.

Alternatively, car finance brokers such as My Car Credit will offer you a broader panel of lenders who cover all credit profiles, from excellent through to bad.

No deposit car finance is available from most of My Car Credit’s lender panel. This means if you find a car worth £7500, a lender from My Car Credit would pay for the vehicle from the dealership and offer you a repayment plan over your chosen term, leaving you with nothing to pay upfront.

Secure the best deal

If you’re looking for a new car and want to know your budget or perhaps you’ve found your dream vehicle and are wanting to get driving as soon as possible, the no deposit car financing deals from My Car Credit can get you on the road in no time. We have a number of options available to suit you, no matter your circumstances.

Get a car finance quote today using our quick and easy calculator. You can then apply online and get an instant, online decision on car finance. If you need any help, feel free to get in touch with our friendly team to see how we can help you drive away in your new car.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Much Car Finance Do I Qualify For?

Will I Get Accepted for Car Finance?

How Does Car Finance Work in the UK?

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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