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8 of the Most Economical Cars to Help You Save Money

With high inflation outstripping wage and benefit increases, the UK is going through a serious cost of living crisis. As a result, people are looking to cut costs in every area of their lives – and driving is no exception.

Economical cars can help you do that, saving you on fuel or even road tax over time. While it might seem like a small amount, every penny and pound will count as we all feel the squeeze over the coming months and years.

Keep reading as we look at 8 of the most economical cars that can make driving more affordable.

Most economical electric cars

First and foremost, electric vehicles account for many of the most economical cars on the market. That’s because they’re exempt from road tax thanks to zero emissions, cheaper to run because of fewer moving parts, and cheaper to power with electricity costing less than diesel or petrol.

On the flipside, they’re obviously more expensive to buy. That’s where a car loan finance calculator can help, showing you how the cost can be spread. To make things even more economical, here are some of the cheapest models available…

Fiat 500 Action

Priced at around £21,000 brand new, the Fiat 500 Action is one of the cheapest electric cars available. That’s partly down to its smaller 24kWh battery (compared to 42 kWh on previous models). As a result, the range is a modest 118 miles, making it ideal for urban commutes, short trips and general day-to-day use as long as you have a home charger.

Vauxhall Corsa-e

If you’re looking for something that can go a little further, the Vauxhall Corsa-e is a good option. The supermini’s official range is 222 miles, with prices starting around £25,000 brand new. It’s nice and lightweight so the charge won’t be used up unnecessarily. Naturally, with both of these cars, there’s a lot of money to be saved going for a used, older model.

Most economical hybrid cars

If you’re not ready to be plugging in just yet, or maybe you live in a remote area where chargers aren’t readily available, hybrids offer a good alternative. They use regenerative braking to generate electricity while driving, meaning you can supplement fuel from the pump without any extra work.

Toyota Yaris (and Yaris Cross)

Toyota is leading the way when it comes to hybrid efficiency. Both its Yaris 1.5 Hybrid and Yaris Cross 1.5 Hybrid offer around 60mpg on average.

The standard Yaris is smaller and cheaper to buy, making it the most economical hybrid car that’s ideal for individuals, couples or small families. As a small SUV, the Yaris Cross provides all that, plus a little extra space and the sought-after SUV styling – albeit at a little extra cost.

Elsewhere, the Toyota Prius is another top contender. While it doesn’t quite match the Yaris for fuel-efficiency, it’s been around for much longer, meaning there are a greater choice of older, used vehicles at a cheaper price.

Most economical diesel cars

While cars that are powered solely by fuel burning can’t quite match the efficiency of electric and hybrid models, they’re still some of the most economical cars, thanks to their lower price tags. Of the two fuels, diesel is known for its better fuel economy – making the next two cars a pretty good option overall…

Peugeot 208

With a 1.5-litre BlueHDi diesel engine, the Peugeot 208 achieves around 70mpg. Despite being a relatively small car, its five-door design makes it easy enough for rear passengers to get in and out. Its 311 litres of boot space makes it similar to other small cars, with the option to fold down rear seats for a 1,100 litre total.

Vauxhall Corsa

A second mention for the much-loved Vauxhall Corsa – this time for its 1.5 Turbo D model rather than its electric counterpart. It’s almost a carbon copy of the Peugeot 208 with the tiniest difference in mpg and boot space. That said, it does have a more responsive drive, meaning you can go economical without feeling it on every corner.

Most economical petrol cars

Out of all the fuel options, petrol is typically the least efficient – but that doesn’t necessarily mean it’s not economical. There are plenty of petrol cars to choose from with small engines, which makes them cheaper to buy and run. By choosing a smaller petrol car, you can still get from A to B at a relatively low cost.

Peugeot 108

First on sale in 2014, the Peugeot 108 is the quintessential economical car. It has an official mpg of just under 59mpg, thanks to a modest 1-litre engine and small, lightweight design. That does pose some issues for practicality, with the car and its 180-litre boot more suited to people travelling alone or as a pair. However, if you’re looking to cut costs, it’s hard to go better than this reliable city car.

Citroen C1

Like our top diesel contenders, we have another case of two similar cars matching each other stride for stride. The Citroen C1 is another economical car powered by petrol, with the same mpg as Peugeot’s city car – though it does come with a slightly bigger boot.

Keep your car economical

With the cost of fuel at an all-time high, not to mention everything else rising in price, it’s never been more important to have a car that’s economical to run. Invariably, that means you’re better off with newer models that are more fuel-efficient.

With My Car Credit, you can make your purchase as economical as your up-to-date car. We compare finance from our established network of lenders, saving you time while ensuring you get an affordable deal that spreads the cost of your next car.

If you have any questions about our process, don’t hesitate to contact our team on enquiries@mycarcredit.co.uk and we’ll get back to you as soon as we can.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

Is 100k Miles a Lot for a Used Car?

If you’ve spotted a used car at a good price but with high mileage, you might be wondering ‘is 100k miles a lot for a used car?’ The answer to this will vary depending on several factors. Read on to learn more.

Is 100k miles too much for a used car?

There is no one answer as to what counts as too many miles on a used car. This will vary on the age and make of the vehicle. Firstly, you’ll need to put that 100k miles into the context of the car’s age. Average mileage on a vehicle will usually be in the range of 7,000-12,000 miles per year.

If the vehicle is only a few years old and already has 100k miles on the clock, it has seen a lot of usage and may be experiencing higher levels of wear and tear, which could quickly become costly through repairs. So, if we’re asking ‘is 100k miles a lot for a used car’ in relation to a newer vehicle, the answer could very well be, ‘yes’.

If the vehicle has been used for over 10 years, you are potentially getting a much better deal. 100k broken down over 15 years, for example, means the car has been driven less than 7,000 miles a year. However, a more modern vehicle also comes with its own technological advancements, so a 2018 car with 100k miles would potentially drive far better than a model from 2012.

Is a high mileage car worth buying?

Ultimately, you will need to research the different car models and how well they run after reaching 100k miles. If you have a specific car in your sights, you might want to ask about its service history and any accidents or issues from the previous owner.

The lower price and slower depreciation can make high mileage used cars attractive to drivers. A car that goes from 10,000 miles to 30,000 miles will depreciate more than one going from 100k to 120k, for example.

However, they come with many risks – including the lack of a valid warranty and the higher potential for wear and tear. They’re also less likely to be accepted for car financing. Whilst cars with mileage over 100k may be just right for some motorists, lower mileage vehicles come with a level of security that many drivers can’t ignore.

If you’re interested in financing an up-to-date low-mileage vehicle, why not get a car finance quote to get the ball rolling today?

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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Is It Worth Buying a Warranty on a Used Car?

If you want peace of mind in case your vehicle suddenly needs expensive repairs, then a used car warranty may be for you. However, they’ll frequently see you shelling out more than you would for irregular repair jobs, and the terms and conditions of the policy can include significant exclusions. Read on as we explore is it worth buying a warranty on a used car.

What is a car warranty?

A car warranty is a kind of insurance that covers the cost of any parts or labour that may be required to fix particular mechanical or electrical faults with your car. Typically, when you purchase a new car, it’ll have a manufacturer’s warranty that lasts anywhere from three to seven years, depending on the car model.

Exactly what your warranty will cover depends on the provider, and there may be limits such as mileage that could invalidate your cover if unmet. Cars older than ten years old are typically more difficult to claim a warranty on.

Is it worth purchasing an extended car warranty on a used car?

If you’ve already got a used vehicle in mind, it’s worth checking the purchase documents. If it’s a relatively new model, the vehicle may still be within its manufacturer’s warranty – this will generally be around three years but can be anywhere up to seven (which is standard when it comes to all Kia models, making them excellent value for money). Otherwise, your dealership may offer you a used car warranty. These will usually promise financial peace of mind should your vehicle experience any mechanical or electrical failure.

However, research by Which found that many used car warranties will tend to have you spending more for the warranty than you would expect to pay on an average repair bill.

Many used car warranties also have significant exclusions for what you can expect to be covered by the warranty, so you’re essentially paying a significant premium for minimal cover.

You should take the time to carefully go through any terms and conditions of the warranty you agree to, and determine the exclusions written into the agreement. Similarly, if a deal seems too good to be true in terms of low cost, there’s probably a reason, and you may end up shelling out for even the most basic repairs as a result of innumerate policy exclusions.

Used car warranty: is it worth it?

The answer to this question really depends on whether or not you can afford the cost of any repairs as and when they arise.

It may be more strategic to budget a certain amount of money per month towards any repair fees, rather than paying out for a pricey warranty which may come with a high list of exclusions.

At the least, you should be shopping around and comparing as many quotes as possible for your warranty – don’t go jumping into the first deal offered – and ensure that you always read the fine print of any policy.

Financing your used car

If you’re buying a used car, warranties are just one of the considerations you’ll need to make. A much bigger one is how you plan to finance the purchase. My Car Credit can make it easy, providing a car loan quote from our extensive network of trusted lenders. Any questions? Contact us on enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

PCP Finance Explained – Personal Contract Purchase Guide

How Long Does It Take to Buy a Car?

What’s the Cheapest Way to Finance a Car?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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Should I Buy a Car in London?

Whether you’re a weekend warrior looking for new ways to escape the city or a nine-to-fiver wanting to streamline your commute, “should I buy a car in London?” is a question asked by all kinds of people. If you live in the capital and are thinking about investing in a car, this article is for you. Read on as we cover all the practical and financial factors to consider when deciding whether you should buy a car in London.

The pros and cons of public transport

One of the biggest reasons people choose not to buy a car in London is the tube. The London Underground is one of the most iconic urban public transport networks in the world – and for good reason. Around two million passengers per day ‘mind the gap’ and often combine their journey with overland trains, buses, trams, riverboat services and sometimes even a set of wheels via London’s public bicycle hire scheme.

While public transport is incredibly efficient at getting people from A to B, it can be stressful with the average Londoner enduring a commute of 74 minutes. This gets many people thinking, should I buy a car in London?

While this can be a pretty straightforward question in other cities, the capital is unique and there are some special considerations you’ll need to factor in when asking if you should buy a car in London.

Parking in the capital

Whether you squeeze into a street space drawing on your best parallel parking skills, resign to the exorbitant prices of ticketed car parks or splurge on renting or buying a private parking space, there’s no denying parking in London is a headache. And an expensive headache at that. The average standard space costs more than £1,730 per square foot, on par with homes in upscale neighbourhoods like Chelsea and Kensington. This puts private parking well out of reach for the average London motorist.

Consider ‘park and ride’ options

Should I buy a car in London is a question asked by many people who live outside of London and commute into the city. It’s a great question, especially if your commute involves taking a bus from your house to the nearest train or Tubs station. Often, this step can add 30 minutes or more to a daily commute.

If you live near an official Transport for London car park, driving to a station and completing the final leg of your journey using public transport can be a great way to save on parking and petrol, not to mention reducing your eco-footprint. Season tickets offer great value for money and with car parks located across Greater London and beyond, chances are you’re within easy driving distance.

ULEZ charges

The capital has been struggling with air pollution since the Great Smog of London in the 1950s. The Ultra Low Emission Zone (ULEZ) has been introduced across the city to keep air pollution in check, with most vehicles hit with a £12.50 daily charge for travelling within the zone. This is definitely something to factor into your budget when researching the pros and cons of buying a car in London.

The EV revolution

When it comes to sidestepping the ULEZ charge in London and minimising your environmental footprint, electric vehicles (EVs) are the answer. Fully electric cars emit no CO2 or NOx from the tailpipe, making them 100% exempt from ULEZ charges. The average small petrol car churns out 120 g/km of CO2, meaning EVs are also a fantastic way to slash your personal emissions.

EV charge points in London

If you’re considering making the switch to an EV, it’s worth considering your driving habits and what charging infrastructure is available to you in London.

Hammersmith & Fulham is spearheading the movement, with Leader of the Council Stephen Cowan recently channelling more than £5 million into the installation of hundreds more lamppost chargers. By March 2023, the borough will offer more than 3000 EV charge points to London motorists.

“We’ve led Britain by installing these charge points as we encourage the shift to electric vehicles, cleaner air and a greener environment”, says Cowan. “If you buy a new car, please make it an electric one.”

Opt for a shorter range vehicle

Range is one of the biggest barriers to EV ownership, with many motorists worried their battery-powered car won’t be able to keep up with their driving habits. Thankfully, this isn’t usually an issue for London motorists using their car primarily for commuting. Low range EVs are more affordable than their high range counterparts, making them a great option for motorists on a budget. Models like the Smart EQ Fortwo and entry-level Fiat 500 Electric offer incredible value for money and more than enough range for you to zip around the city, then recharge when you’re back home.

Of course, if you plan to use your car to escape the city on weekend road trips and countryside adventures, it’s worth upgrading to an EV with higher range. The latest Mercedes EQS boasts an impressive range of 450+ miles, though it comes with a luxury price tag to match. The new Tesla Model S is also up there, with a range of around 400 miles. It can easily take you from London to popular holiday destinations like Cornwall.

Upgrade to a second-hand ZEC vehicle

In London, three types of vehicles meet ULEZ standards. They’re known as Zero Emission Capable (ZEC) vehicles and include the following:

100% electric vehicles with battery-powered motors.
Plug-in hybrid electric vehicles (PHEVs) that feature zero-emission technology backed with a standard petrol or diesel engine to boost range.
Hydrogen fuel cell electric vehicles (FCEVs) that use hydrogen to generate electricity and run the car.

Buying a car in London: The next step

If you’ve weighed up your options, crunched the numbers and decided you’re ready to get behind the wheel in London, we’re here to help. Whether you’re in the market for a second-hand EV or a brand-new ZEC vehicle, our team has the experience and expertise to track down the best tailored car finance solutions in the capital.

Our service is backed by Evolution Funding, the largest motor finance broker in the UK. This means your application will gain exposure to a broad panel of lenders, which ultimately translates to a better car loan quote.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Is there such a thing as guaranteed car finance?

Car Finance or Personal Loan – Which is Best for You?

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

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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What to Look for When Buying a First Car?

Whether you’ve just turned 17 and are shopping for your first ride or are an older motorist looking to get behind the wheel, buying a first car is an exciting milestone. There’s lots to think about, which is why we’ve put together this comprehensive guide covering what to look for when buying a first car. From mileage and models to shopping around for finance, read on to find out more about what you should prioritise when buying your first set of wheels.

New vs second hand

Whether to purchase new and savour that ‘new car smell’ or unlock the savings that come with a second-hand vehicle is one of the first questions to ask yourself when considering what to look for when buying a first car.

Budget will likely be a big factor, with recent data from GoCompare revealing the average new driver spends around £5,000 on their first car. This suggests most new motorists opt for used models, which can be a great way to save money and stretch your budget further. While several factors have pushed up demand and prices for used cars over the past few years, the good news is analysts expect the market to cool off soon.

Mileage and wear and tear

If you’re thinking about the second-hand route, mileage will be a big factor when considering what to look for when buying a first car. The odometer paints an instant picture of how far the car has driven and what kind of life it’s had.

In the UK, the average motorist racks up around 10,000 miles per year. So, a two-year old car should have around 20,000 miles on the odometer to be considered average mileage. Anything more would push it into the high mileage category and anything less into the low mileage category.

Of course, maintenance and servicing play a big role in the overall condition of the car and the engine. Both are important variables to consider when making your list of what to look for when buying a first car. For example, while a three-year old car with 50,000 miles on the odometer may be considered high mileage, if it’s in immaculate condition and comes with a flawless servicing history it could be a fantastic deal.

Similarly, if you’re looking at a seven-year-old car with 40,000 miles on the odometer but the vehicle appears bruised, battered and has no servicing history to speak of, you may want to think twice about whether it’s a good deal.

New cars are always a tempting option, offering not just an ultra-fresh aroma but also reliability and peace of mind. Many new cars come with free servicing and warranties, which means you won’t have to think about forking out for these expenses for several years. Initially, the higher price tag of new cars may seem to push them out of your budget. But if you consider finance, a new car could be well within your reach as a new motorist. More on this later!

Petrol powered vs electric

If you’re thinking about a petrol or diesel-powered vehicle, emissions are worth considering as they can affect things like how much road tax you pay and even where you’re allowed to drive in some cities.

Electric vehicles (EVs) are the future of personal transport, with more than 400,000 pure-electric models humming along British roads in February of this year. With fuel prices soaring, EVs are more appealing than ever. Not only do EVs unlock huge savings on fuel but they also slash your environmental footprint and carbon emissions. If you’re an eco-warrior looking to tighten your budget, an EV could be a great option for your first car.

With both the national government and local councils continually upgrading EV charge networks across the country, it’s never been easier to drive an electric vehicle. Zap Map is a fantastic resource and makes it easy to find EV charge points at your fingertips. If you’re not fully sold on 100% electric, a plug-in hybrid (PHEV) could be a great compromise.

Opting for old favourites

When it comes to cars, British motorists are pretty clear about what they like. If you’re not sure what to look for when buying a first car, taking cues from other drivers can be a great place to start.

The small and zippy Ford Fiesta is consistently crowned one of the best-selling cars in the UK and it’s easy to see why. It’s compact and easy to drive in cities, effortlessly cruising along motorways and slipping into parallel parking spots. It’s also an excellent little ride in towns and villages where you might encounter winding roads and laneways. Alongside the Ford Fiesta are fellow bestselling models like MINI, Toyota Corolla and Hyundai Tucson. The latter is a great option if you’re looking for something a little roomier for kids, pets, or both!

A good finance deal

Whether to pay cash or take out a car finance loan is one of the biggest questions you’ll face when buying your first car. There are pros and cons to each and it’s important to consider your own unique circumstances when deciding.

The benefits of buying a new car with cash speak for themselves, with zero interest and no repayments to worry about. That said, it’s an unrealistic option for most new car buyers. This is where finance steps up. Purchasing a car on finance gives you the freedom to increase your budget and get the keys to a car you actually want to drive.

When researching what to look for when buying a first car, a good finance deal should be front of mind. Whether you’re buying new or used, shopping around is one of the most important steps you can take when buying your first car. It’s simpler than you might think, with our purpose-built calculator making it easy to get a car finance quote in a matter of minutes.

Want to know more about how auto finance can help you secure your first car? Get in touch with our friendly team today to discuss your options and find out more about the My Car Credit service.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Bark Up: 7 Best Cars for Dogs

Best Car for Commuting: 10 Top Picks

10 Most Popular Cars in 2023

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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Can I Part Exchange a Car on Finance?

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

What is a part exchange?

A part exchange is a common practice when buying new cars. Drivers give their existing vehicle to a car dealership to cover some of the purchase price for their next car. In most cases, the existing car counts as a car deposit, meaning you don’t need to save up more money and part with a lump sum to get a different car.

Let’s say your car has a current value of £4,000. You can use that as a deposit on a car worth a lot more, then pay the rest yourself or arrange a finance deal for the remaining amount. The latter is advantageous as it spreads the cost to give you more flexibility with what you can afford.

Part exchanging a car is beneficial because it allows you move to your next vehicle sooner, giving your budget a boost by leveraging the value of your car. It also takes away the hassle of selling your existing vehicle privately. Selling a car privately to fund your next car has the added complication of timing everything right and potentially being without a vehicle for a short period. This is all eliminated by part exchanging.

Is it possible for a financed car?

Things are a little more complicated with part exchanging a car on finance, as you may not own the car outright. Until you pay off car finance agreements, the car is usually still owned by your finance provider. That said, you will have paid some of the cost of your current finance agreement via the deposit and monthly instalments, which gives you some value in your current car.

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

Where you’re eligible for part exchange, it can be a great way of finding a new set of wheels. However, not everyone is eligible for a part exchange – it’s contingent on what kind of car finance you have, how much you have paid off on your financed car and some other factors.

Who is eligible for part exchange?

You should be able to part exchange your car if you purchased a car on finance via either a Hire Purchase (HP) agreement, Personal Contract Purchase (PCP) agreement, or a personal loan. However, if you have financed your car via a PCH agreement, you won’t be eligible, as you are not the car’s legal owner at any point. Also known as leasing, personal contract hire (PCH) essentially means you are paying to use the car but not working towards owning it.

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

You can also part exchange your car during your agreement – but whether or not this is a good idea depends on how much your car is worth, and how much you still owe. You’ll have to settle any outstanding balance before the part exchange can take place. This is done with a settlement figure or a negative equity finance agreement, which we discuss below.

How to part exchange a car on finance

There are a few considerations if you want to part exchange a car with a PCP agreement or HP finance agreement. Firstly, be aware that you’ll need the car’s logbook – known as its V5C – as well as any relevant paperwork, the vehicle manual, MOT and service documents.

Here are some additional things to factor into your part exchange deal…

Value vs outstanding finance

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

This will then be weighed up against your outstanding finance – how much you have left to pay on your finance contract, including monthly payments and a balloon payment if you have PCP finance. The result of this calculation can give you either positive equity or negative equity, as described below.

Positive equity for a financed car

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

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

So, positive equity essentially makes your new car finance agreement a little bit cheaper.

What about negative equity?

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

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

Getting a settlement figure

To part exchange a car on finance with negative equity, you may need to get a settlement figure from your lender. This is where they’ll confirm any outstanding finance and positive or negative equity, which is used to calculate a settlement figure (or settlement amount) before you can part exchange your current car.

The settlement figure can sometimes include a final balloon payment and there may also be an early termination fee for your car finance agreement.

Talk to My Car Credit

If you’ve got questions about whether a part exchange is for you, contact My Car Credit today. We can address any concerns you may have and help you establish your car finance eligibility to part exchange a car. If you have an existing agreement, we can advise on the next steps to take with your finance company, before comparing deals from multiple lenders to part exhange a car and move to a new car finance deal.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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Can You Modify a Car on HP Finance?

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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How Long Does It Take to Buy a Car?

On the hunt for a new – or nearly new – set of wheels and wondering how much time it might take to buy one? It’s definitely not a task for your lunch break, as there are a number of variables which will impact how long it takes to buy a car. We look at the main factors to consider below.

Buying a car – what to consider

After a house, buying a car is likely to be the second largest purchase you ever make. For that reason, it’s important not to rush it. In fact, 2020 research by Cox Automotive Research & Market Intelligence found that people are in the car buying ‘market’ for an average of 89 days.

That might seem like a long time, but in reality, purchasing a car is a fairly time-consuming activity. Variables such as the below will impact exactly how long it takes to buy a car.

Research

First up, you’ve got to do your research. Is safety your priority, or are speed and style more important? What’s your budget, and what kind of financing do you need? Are you heading to a dealership, or are you okay with a private seller?

This period can take the longest, and be a real time-sap – if you allow it to be. Answering these questions before beginning your research can help to streamline it. Plus, if you know what you want from the off, you’re less likely to spend time negotiating with the salesperson as they try to upsell expensive add-ons and features.

Shopping around

As we say above, you can speed the process up by going into the shopping process with a clear idea of what you want. Don’t forget to include test drive times in your shopping timeline – this will usually be around 30 minutes or so per test drive.

It’s worth setting aside a day or two for the actual shopping part. Heading to different dealerships allows you to gauge which will offer you the best price and/or financing, helping you secure a deal that works for you.

Remember that buying a new car will likely be faster than a used car. It may take longer to find a used model that you’re happy with, and you’ll also need it to be evaluated prior to purchase. A trade-in will also extend the buying period.

Paperwork

You can speed this process along by heading to the dealership or private seller with the following:

Your licence
Registration
Any agreed payment details including financing
Proof of insurance

Going in with your paperwork will speed up purchasing time, as you won’t be haggling with dealers over the specifics and any credit check and ensuing agreement will already have been pre-established.

Car finance doesn’t have to take so long!

Looking to cut down how long it takes to buy a car? You can use My Car Credit’s car finance calculator to get a no-obligation quote for car finance within minutes. Plus, if you have questions about the buying process, our friendly team are always on-hand.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Bark Up: 7 Best Cars for Dogs

Best Car for Commuting: 10 Top Picks

10 Most Popular Cars in 2023

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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When is the Best Time to Part Exchange a Car?

Part exchange – also known as PX – is a hugely popular way for Brits to sell their car. It allows you to avoid the hassle of privately selling. Furthermore, you can use your current car to partially finance a new vehicle.

There are real benefits to part exchanging a car. As such, the best way to take advantage of these is to part exchange your car at the right time. That’s why we’ve outlined exactly when that is below, as well as detailing what to consider if you are thinking of embarking on a part exchange.

What is a part exchange?

Put simply, a part exchange is when you use your current car as partial collateral for a new one. You’re essentially trading your current car in for another – usually more expensive – vehicle and using it to finance that purchase.

How does a part exchange work?

Typically, a dealer will evaluate your current vehicle. Once this value has been confirmed and settled upon by both parties – that is, you, as the seller, and the dealer, as the buyer – then the dealer will take the value of your current car off the price of the new one.

By part exchanging, you’re therefore partially covering the cost of your new vehicle with the total value of your old. The state of your current vehicle will inevitably impact its valuation by the dealer – as will the time of the year when you choose to part exchange.

When is the best time to part exchange a car?

New number plates are released in the UK twice a year. This happens in the months of March and September. One of the best times to part exchange a car can therefore be February and August – the months prior to these new release dates.

That’s because buyers will tend to wait until these new releases, which can result in slow sales for dealers. Dealers may therefore be more willing to offer a good deal – or at least to negotiate – around these months.

How to ensure your current car holds its value

There are a number of factors that could impact the dealer’s evaluation of your car.

Damage

This is an obvious one, but any damage to your vehicle’s wheels, paintwork, or body can impact its value. Dents and scratches can deplete this by hundreds of pounds, so the condition of your vehicle is vital in securing a part exchange that is financially beneficial for you.

If you’re time-strapped and haven’t managed to get your car in for a service, be sure to do your research and know how much the repair of a dent or scratch would cost. You can then ensure that any salesperson doesn’t deduct any higher than this number.

Keep on top of your MOT and service

A full service history adds value to a car, so keeping a record of this is essential. In fact, an incomplete service history can deplete your vehicle’s value by up to 10%.

You also want to ensure that you have more than three months left on your MOT, and make sure you’ve kept hold of any spare keys.

Low mileage

Models with low mileage, exciting add-ons, or unusual colours may add value to your car. It’s worth bearing in mind what kind of car the dealership is after – there’s no point offering your Mini to a dealership that specialises in Range Rovers.

Remember to negotiate

Remember to go in with confidence but be prepared to haggle. Negotiations are always a component of a part exchange. That said, it’s important to feel that you’re being heard and not taken for a drive (pardon the pun).

Walk away from the conversation if it’s not going anywhere and re-evaluate your options. Dealers are there to make money and get the best deal possible, which may end up with you feeling short-changed. Remember that it’s always an option to sell your car privately – although this will require more effort on your part.

Financing your purchase

Part exchange will cover some of the cost of your new car. You can maximise how much it covers by knowing the best time to part exchange a car. But for the rest, you’ll usually need to call on car finance.

That’s where My Car Credit can help. Our friendly team can advise on car finance eligibility, before finding a great deal to help you spread the cost of your purchase. Contact us today on enquiries@mycarcredit.co.uk to find out more.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Bark Up: 7 Best Cars for Dogs

Best Car for Commuting: 10 Top Picks

10 Most Popular Cars in 2023

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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What to Look for When Buying a Smart Car

We’ve all seen Smart Cars nipping around city streets – especially if you’ve ever visited continental Europe. They make great urban vehicles, as they’re as long as standard cars are wide. Therefore, they can park nose-first in parking spaces.

They’re nippy and – despite their size – do actually offer fairly decent boot space. In addition, they’re comfortable, with enough legroom for the average passenger. Plus, because they’re a German brand – Smart Cars are actually a division of Mercedes Benz – they’re made with care and quality.

Fans of Smart Cars are real advocates, listing the vehicle’s park-ability, nippiness, comfort, and compact size as amongst its benefits. However, as with any used or nearly-new vehicle, there are certain things to look out for when buying a Smart Car.

Buying a Smart Car: what to look for

Brakes

The brakes of a Smart Car are expensive. So, when you’re test driving or inspecting a model, be sure to check on the front springs, as these can break. Furthermore, ensure that you can’t hear any rattling when you go over speed bumps which might indicate wear.

Tyres

Only two companies in the world make tyres suitable for Smart Cars – and they’re not cheap. Typically, the Smart Car has rear wheel drive. The tyre on the rear passenger side will tend to wear the quickest as that’s the driving wheel. Smart Cars are one wheel drive, so check its treads when inspecting the model.

Exhaust

Find the exhaust of the model you’re looking at and gently press on it. It should feel solid, and shouldn’t rattle. In addition, when you’re driving, it shouldn’t be noisy. Replacing the exhaust flexi pipe requires taking apart a significant amount of the car’s main body, which can be an expensive and time-consuming task. As such, ensuring the exhaust is robust and working properly from the off will avoid this faff.

The ECU

The electrical components of a Smart Car are under the passenger foot bed. This means that if the passenger gets in the car with wet boots, some water can trickle down into the ECU, which will damage the car. If you find damp around that area, you can use this as a leverage to negotiate for a better price.

Miscellaneous

The older intercoolers of this car do tend to leak. Therefore, look out for newer ones, as this means the previous owner has been diligent with upkeep.

You also want to ensure that the car has previously had regular oil and filter changes. Of course, it’s also worth checking standard fare. For example, ensure the horn works, the gearbox is responsive, the engine is robust, and body parts are as they should be.

Buying a Smart Car with finance

The final thing to look for when buying a Smart Car is a finance deal that’s fair and affordable. This means you can spread the cost of your new ride. When you get a car finance quote from My Car Credit, we compare deals from a vast panel of lenders so you don’t need to shop around to get a great price.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Bark Up: 7 Best Cars for Dogs

Best Car for Commuting: 10 Top Picks

10 Most Popular Cars in 2023

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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What is the Best Used Estate Car to Buy?

When it comes to space, it’s hard to beat the generous dimensions of an estate car. There are some fantastic new models on the market this year. However, you can unlock big savings by purchasing a second-hand estate car. Not sure where to start? Read on as we cover what is the best used estate car to buy. In addition, we’ll go through what to look for when browsing the second-hand market.

Getting to know estate cars

If you’re not familiar with estate cars, let us give you the lowdown. While the front of the car resembles a standard hatchback, the rear features an extended boot with a cavernous cargo area. Space is the main selling point. As such, estate cars are hugely popular among families with bucketloads of luggage, sports enthusiasts carting around bulky equipment and pet owners with a couple of four-legged friends in tow.

Fun fact – did you know estate cars, or station wagons as they’re often referred to, are named after their original purpose of ferrying passengers and luggage between railway stations and country estates?

Estate cars vs SUVs

In many ways, estate cars are comparable to SUVs as they offer far more space than the average car. Though instead of off-road styling, they champion a sleek and urban aesthetic. This means they’re just as comfortable loaded up with camping gear as they are commuting to the office on a Monday. They also feature a low-profile like their hatchback and sedan counterparts. As such, they can appeal to drivers who want extra space but don’t feel comfortable driving bulky SUVs. Fuel economy is also a factor, with estate cars generally guzzling less fuel than SUVs.

Our top 5 used estate car models

Before we get started, let’s bust some myths about the term “used”. Buying second-hand doesn’t have to mean settling for a model with more than 150,000 miles on the odometer. Though of course, if you’re on the hunt for a serious bargain this can be a good option. In many cases, buying a “used” estate car can mean getting behind the wheel of a model that’s only a year or so old. Furthermore, if you’re really looking for that new car aroma, you could even opt for a test drive model.

1. Skoda Superb Estate

Spacious and sturdy, the Skoda Superb Estate boasts one of the biggest boots in its class. Models from the last five years offer excellent fuel efficiency and are great for long-distance driving. The generously sized interior coupled with low running costs make the Skoda Superb Estate a firm favourite with families. While the Skoda Superb Estate enjoys glowing reviews from most owners, there have been reports of water leaks in the boot. With this in mind, be sure to give your used model a good once-over during the test drive.

2. BMW 3 Series Touring

Luxury meets practicality in the BMW 3 Series Touring. Packed with high-tech features, this model treats you to all the bells and whistles you expect from BMW. It’s also easy on the eye, with the sleek design challenging perceptions of estate cars. If you’re looking for a family-friendly ride with an executive feel, the BMW 3 Series Touring will tick all your boxes. The 2020 model is available with a variety of different engines, including petrol- and diesel-powered.

3. Ford Focus Estate

What is the best used estate car to buy if you’re looking for value for money? The Ford Focus Estate builds on the success of its wildly popular predecessor. Furthermore, there are some great deals to be had when buying second-hand. Sure, it’s not the biggest or most luxurious model on the market. However, you’ll enjoy excellent handling, impressive fuel economy and some great tech features on the newer models.

4. Dacia Logan MCV

If you thought the Ford Focus Estate offered excellent value for money, wait until you meet the Dacia Logan MCV. A true bargain-basement estate car, this model is marketed as a ‘Maximum Capacity Vehicle’. Indeed, the Dacia Logan MCV offers plenty of space for passengers and luggage alike. The 2019 model boasts an impressive 573-litre boot that can handle all the golf clubs, dog kennels and flat-pack furniture you can throw at it. While the Dacia Logan MCV has now been discontinued, there are loads of used models out there and some serious deals to snap up if you know where to look.

5. Mercedes E-Class Estate

There’s plenty to love about the Mercedes E-Class Estate, including the luxurious interior and elegant styling that redefines the station wagon aesthetic. Sliding into the driver’s seat, you’ll immediately notice the intuitive cockpit features, high-quality materials and luxe leather trim. The Mercedes E-Class Estate doesn’t compromise on space. As a result, the 2016 model offers a mammoth 640-litre boot or 1820 litres with the rear seats folded down.

Choosing what is the best used estate car to buy

All factors considered, what is the best used estate car to buy? Ultimately, the best model for you will depend on your personal preferences and budget. If you’re looking for value for money, the Dacia Logan MCV is hard to beat. The Mercedes E-Class Estate promises unparalleled luxury. However, the Skoda Superb Estate is a top performer when it comes to space. When deciding what is the best used estate car to buy, we always recommend taking the time to establish your priorities, do your research and get stuck into online reviews.

When you’re ready to get behind the wheel of your dream estate car, we’re here to help. With access to one of the biggest lending panels in the UK, we have the experience and expertise to secure you the best used car finance deals. Contact us today to find out more about how to unlock the best used car finance deals in the UK.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Bark Up: 7 Best Cars for Dogs

Best Car for Commuting: 10 Top Picks

10 Most Popular Cars in 2023

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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With high inflation outstripping wage and benefit increases, the UK is going through a serious cost of living crisis. As a result, people are looking to cut costs in every area of their lives – and driving is no exception.

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If you’ve spotted a used car at a good price but with high mileage, you might be wondering ‘is 100k miles a lot for a used car?’ The answer to this will vary depending on several factors. Read on to learn more.

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