Where Can I Find the Best Used Car Finance Deals?

Woman looking on phone for best used car finance deals

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

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

Type of finance on offer

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

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

Flexible terms

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

Freedom to buy from different dealers

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

Ease and transparency

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

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

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

Enlist the help of a broker

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

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

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

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

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

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!

3 Benefits of Car Finance Even If You Can Buy Outright

Camping in new car bought on finance

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 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

Require more help?

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

Can I Take Over Someone Else’s Car Finance?

Car with outstanding 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 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

Require more help?

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

Can I Get Car Finance For A Private Sale?

Car purchased via a private sale being driven at night

Buying a car is likely to be expensive, which is why so many people use car finance as a way of making the whole process more affordable. Private sales are no exception, requiring a decent sum of money that not many buyers have up front.

Understandably, that leaves many buyers wondering whether you can get car finance for private sales. In this post, we’ll explore your options when it comes to private sales and car finance.

Understanding the basics of car finance

Car finance enables you to drive your new vehicle off the showroom floor without having to pay for the car upfront. By making affordable monthly payments directly to the lender, you can have full use of the car. Traditionally, car finance was offered by dealers when you bought the vehicle from them. This can put buyers at a disadvantage if the dealer only uses one or two lenders, rather than searching the whole market for the best deal for your circumstances.

However, the industry has come a long way, with greater choice now available. Nowadays, you can use independent car finance providers or even car finance brokers to get the best deal for your new or used car. Given that dealers are no longer directly involved, many people assume this car finance can be used for private sales too.

Can I get car finance for a private sale?

There are lenders who specialise in car finance for a private sale. However, they may ask for additional information and security. This is because private sales don’t come with the same assurances that dealership sales do. The alternative would be to take out a loan to pay for the car up front. However, it’s worth noting that this doesn’t come with the same flexibility as car finance, such as the option to return the car at the end of your repayment term.

At My Car Credit, we help buyers find a great finance deal for cars which are bought through reputable UK dealers. Remember, buying through a dealership doesn’t mean you have to fork out for a brand-new car. While car finance isn’t available for private sales, there’s no problem when it comes to used cars from a reputable dealership.

Opting for car finance rather than a private sale also means you get expert support throughout the process. Rather than borrowing money and making a purchase on your own, My Car Credit has a team of car credit specialists on hand to guide you through the process. Above all else, that means no hidden costs, no confusion and no need to worry.

Contact us today

At My Car Credit, we’re committed to providing an affordable alternative to private car sales. Using our car finance calculator, you can get a better idea of the interest rate, monthly repayments and overall cost to get the car you need.

With the largest panel of car finance lenders out of any broker, we have great relationships with reputable and professional lenders. This means we’re able to find you the best deal available for your circumstances and requirements.

Want to find out more? Give our friendly team a call on 01246 458 810 today.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

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!

5 Different Ways to Pay for a Car

white car in dealership being bought using a car loan

Once you have taken a test drive in your shiny new motor, it can be tempting to throw caution to wind and not worry too much about how you’re going to pay for it. Unfortunately, this is all too common for car owners across the UK. Before you sign on any dotted line, you should know how you aim to pay for the vehicle, whether you decide to hand over cash or take out car finance.

If you’re in the market for your next ‘new-to-you’ vehicle, take a look at the different ways to pay for a car.

How to pay for a car

  1. Cash
    As long as you’d have enough savings left over to cover other major purchases or unexpected costs in the future, paying cash is a great way to buy a car. Paying cash means that you own the vehicle straight away. If you get into financial difficulties, you have the option to sell the vehicle and keep the cash from the sale. If you have a car finance agreement such as a leasing or hire purchase, this isn’t possible.

    If you don’t have quite enough savings to buy the car outright, you could use them to give you the biggest deposit possible, so you end up spending less on loan interest.

    Before you pay cash, think about your future finances. Are you planning any other large purchases over the next few years, such as buying a house? If so, you may want to save some cash and consider financing the vehicle.

  2. Hire Purchase
    This option is increasingly popular for the purchase of new cars. Typically, you will put down a deposit of 10%, and then make fixed monthly payments over an agreed time period. This means that you won’t own the vehicle until the last payment has been made. However, this route does make purchasing a vehicle more manageable. Even those motorists with poor credit can get accepted for car financing.

    Hire purchase agreements are convenient to arrange and can be competitive for newer vehicles. There is also a fixed interest rate and monthly payments with no annual mileage conditions or fines for wear and tear.

  3. Personal Contract Purchase (PCP)
    This type of car finance deal is similar to a hire purchase agreement, but you usually make lower monthly payments. With a personal contract purchase, you have an ‘optional final payment’ at the end of the car finance plan, often referred to as the ‘balloon payment.’ You are able to defer some of the cost of the car to be paid at the end of the plan, making the monthly payments cheaper.

    Instead of getting a loan for the total cost of the car, you get a loan for the difference between its sale price and its predicted value at the end of the hire agreement.

    In a PCP, you decide how much of a deposit you want to make and estimate your annual mileage and the length of the contract. Typically, this type of car finance plan is between 3 and 5 years.

    At the end of the term, you can:

    • Trade the car in and start over again;
    • Hand the car back to the dealer and pay nothing; or
    • Pay a final payment (balloon payment) and keep the vehicle.

  4. Conditional Sale

    A conditional sale is similar to a hire purchase agreement, but you pay higher monthly payments and don’t have a fee to pay at the end of the term. Like a hire purchase, you do not own the car until the car finance plan has been paid in full. Typically, you put down 10% of the car’s value as a deposit, and repayment terms last between 2 and 6 years, making this option ideal for those who want to keep the car at the end of the plan without paying a final fee.

  5. Credit Cards

    Using a credit card to buy your new car can be a cost-effective way of getting a new set of wheels that allows you to buy the car outright on the day. To buy all or a portion of a car with a credit card, you must first ask the dealer if they accept credit card payments as many do not. If they do, they could charge a hefty processing fee that you need to consider.

    It is best to use a credit card that has a 0% interest offer to buy the car outright and then split the repayments over the interest-free period so that the balance is cleared by the time you’re due to be charged interest.

    Putting your new car on a credit card gives you repayment flexibility as long as you meet the minimum payment every month. However, if you only repay the minimum repayment every month, it may take much longer to repay your borrowing amount.

Getting a car on finance? Here’s what to look out for

Before you take out a car on finance, here are a few things to look out for:

• Make sure you can afford the monthly payment – not just now, but for the whole term of the loan.
• Ask the lender what will happen if you struggle to pay one month, and what options you have if you couldn’t afford to pay.
• Compare the total cost of borrowing, including all charges over the full term of the loan.
• Compare interest rates from different lenders. Remember that a larger deposit usually means you have a lower interest rate.
• Consider working with car credit specialists to land the right finance plan.

Find out if you can get car finance

At My Car Credit, we aim to help you through every step of the car finance process to make the process as hassle-free as possible.
For an instant quote, and to see what car finance plan you can be eligible for, please use our simple car finance calculator.

We are open 7 days a week, and our website is full of helpful tips, guidelines and answers to any questions you have.
For more information, call us on 01246 458 810 or email us at enquiries@mycarcredit.co.uk.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

Require more help?

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

Can I Pay a Car Loan with a Credit Card?

Woman paying her car loan using a black credit card online

Buying a new or second-hand vehicle can be expensive. Ordinarily, they’re expensive enough that consumers resort to loans to pay them off over time. However, with car financing, buying a vehicle can be a reasonably affordable venture. If you’re thinking about paying a car loan with a credit card or you believe it is your only option, here is what you should consider.

Can I pay a car loan with a credit card?

Whether you can make a car payment with a credit card will largely depend on your auto loan lender. Some lenders will accept credit card payments without question. Other lenders may accept credit card payments but charge a hefty processing fee. If this is the case, you will have to calculate whether paying with your credit card is worth the fee. Bear in mind that many lenders do not allow direct payment by credit card.

Generally, paying off debt with credit is a no-go for more finance companies. If you can avoid paying your car loan with a credit card, you should. Before you do anything, talk to your lender to see if they accept credit card payments.

How to pay off a car loan with a credit card

First and foremost, check that your lender will accept a credit card payment. If they do, ask if there are any processing fees. If you are happy to proceed, you can transfer your auto loan balance to the card.

When paying off a car loan with a credit card, it is best to use a card with 0% interest. Often, these are introductory offers that can last from a couple of months to a couple of years. If you can finish paying off your card payments in full during that introductory period, you will not accrue or need to pay any interest on your loan’s total. Once the offer ends, you may be charged anywhere from 15 – 30% APR on the remaining balance.

Using a credit card to pay off your car loan can save you money – but only if you have a repayment plan that you stick to.

Alternative ways to pay

If you don’t have a credit card with 0% interest or you don’t have the funds to pay off the card before the offer expires, then you can look into alternative ways of paying for your vehicle.

At My Car Credit, we make the car financing process quick and hassle-free. You can apply, sign paperwork, and get approved online from the comfort of your home.

We’ll work with your financial needs, whether you have poor credit, are self-employed or have other requirements. Apply today to find out if you’ll get accepted – there’s no impact on your credit score!

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

Require more help?

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

Can I Buy a Car with a Credit Card?

Man handing over blue credit card to buy a car

Buying a car can be expensive. When you’re in the market for a new or used vehicle, it’s smart to shop around to ensure you’re getting the right car at the best price. Part of this is considering financing.

Unless you have enough cash stashed away to pay for your new ride, you’ll need a personal loan or car financing to complete the purchase.

If you’re feeling adventurous, you may be tempted to purchase the car through a credit card. But can you buy a new car with a credit card? It’s a good question – Here’s what you should know.

Can I buy a car with a credit card?

The simple answer is yes – you can purchase a card with a credit card. But before you do, you should find out if the dealership even offers that option. Most of the time, they won’t let you charge the entire purchase price of your car. Some dealers will have a limit on the value of an individual purchase, so check before you sign up. 

The process of buying a car on a credit card is the same as buying anything else on a credit card. The full amount is charged to the card, and then you pay the credit card company back over time while paying interest on the outstanding amount. Unlike some other loans, you won’t have to pay a set amount each month. This gives you more freedom to choose how much you pay back each month, as long as you meet the minimum monthly payments. 

Are there downsides to buying a car on credit?

As mentioned previously, certain dealerships may not accept credit cards as complete payment. If a dealership does accept credit card payments, be aware that there may be a surcharge, which is often an unexpected expense.

If you don’t qualify for a 0% credit card, keep in mind that the typical APR rate is 10-15%, which is higher than most loans. Since most 0% deals also only last a couple of years, it would be best to either pay off the card before the 0% offer ends or transfer the balance to another card. In this case, it can be difficult and time-consuming to keep on top of it to avoid unnecessary fees. 

When should you consider buying a car with a credit card?

If you’re thinking about buying a cheap or second-hand car with a 0% interest rate offer, then it can make sense to charge it to your credit card. Before you go this route, however, make sure you can afford to pay off your car fairly quickly. If you don’t, you may end up paying standard APR rates – which are higher than the rates you’d receive from a good car financing company.

Secure, reliable car financing

While you can buy a car with a credit card, doing so isn’t always the right decision. With My Car Credit, securing reliable and affordable car financing has never been easier.

We’re fully FCA compliant, so our customers know exactly what they’re getting from us. We work with a range of motorists to find the right finance plan that suits their needs, from people with poor credit to those who are self-employed.

To get started on your tailored car financing, use our free car finance calculator and then apply to get a decision on car finance without impacting your credit profile. We look forward to working with you.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.240, total amount payable is £9,676.24.

My Car Credit is a credit broker and not a lender.

Require more help?

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

How Much Does Car Finance Cost? Check Now!

Calculator on desk used to work out how much car finance costs

Picturing yourself behind the steering wheel of that new car? Then it’s time to look at car financing options. But with your finger hanging over the button to submit your online application, there is usually one question burning in the back of your mind... How much will it cost me to finance my car?

While costs and rates can vary from person to person, depending on their circumstances, My Car Credit aims to keep things simple.

Read on to see how we do our calculations and make every effort to get you the best car finance deal available from our large panel of lenders.

1. APR Calculator

First off, to get a rough idea of the finance charges on a new car loan, try out our car cost calculator. By entering the relevant details, you will get an indication of the Annual Percentage Rate (APR) and have an overall view of all the costs involved, including the cost of monthly payments. Nothing is set in stone, with zero obligation on your end. But now that you have an estimate to work with, you can send in your application and let us do all the hard work for you.

2. Our Process

Once your application has been submitted, we first make sure we have everything we need. After the compliance phase, we look at suitability, eligibility, affordability and vulnerability by means of an aggregator.

This one-of-a-kind decision-making system aims to find our customers the best possible deal without affecting their credit rating or even slowing down their application. By automating and streamlining this part of the process we can provide consistent, compliant and auditable decisions for our clients, without adding any additional costs.

With comprehensive car finance offerings (from poor credit right through to excellent credit) and loads of experience backing our efforts, we are primarily concerned with making this testing part of the car buying journey a faster, hassle-free and more enjoyable experience. The last thing we want is for you to be plagued by unnecessary delays, costs or extra paperwork.

3. Car finance options

As part of Evolution Funding, we have access to a large pool of car loan companies. This means we can submit to more than 34 finance lenders at the same time and hunt down the sweetest deal for every individual, no matter how unique their circumstances.

With all these means at our disposal, we are better placed to find you the package that best suits your means than any other car finance broker.

4. Communication

We know how frustrating it can be to be in the dark. There is nothing worse than a lack of communication. That’s why we stay in touch and give updated feedback every step of the way, keeping you informed of how your application is progressing and what options are available to you. Our aim is to provide unequalled communication to our customers.

Find out how much a car loan costs

If you want to find out how much car finance costs, it couldn’t be simpler with My Car Credit. Click apply now, fill in your details and get a clear estimate for the cost of your car finance. It’s that easy.

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

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!

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

Car dealer handing over the keys to car bought on finance

If you’re looking to buy a nearly-new or used car and considering taking out a finance agreement, you’ll probably already know that there are a few options available to you. At My Car Credit, we want to make this choice easier with our no-nonsense lowdown on car finance options. Whichever option you choose, we are here to take care of it!

Personal Loan

In short: You borrow a lump sum from the lender to buy the car, which means you own the car from the start of your contract. You then repay this money (with interest) at a set monthly rate within an agreed time limit, usually between 24 and 60 months.

Pros:

  • Your interest rate is fixed and lower than other options where your credit score is good
  • Your monthly repayments are fixed, so you can budget around them
  • You own the car from the start of the contract
  • You can choose the time limit of the loan

Cons:

  • Your interest rates can be higher if you have a poor credit score
  • You are entirely responsible for the car and all repairs
  • You have to borrow over £1,000

Ideal for people:

  • Who want to own the car from the start of their contract
  • Who want flexibility with their repayment structure
  • Who are looking for lower interest rates

Eligibility

Most people will be eligible to take out a Personal Loan. However, those with a bad credit score or those with a bad credit history (especially those that have CCJ court orders against them) may be declined.

At My Car Credit, we work closely with a number of trusted Personal Loan funders. You can make an application on our website to determine your chances of being accepted and because we only carry out a ‘soft search’, there will be no trace left on your credit file.

Hire Purchase

You put down a deposit on a car and the lender pays for the rest. You then ‘hire’ the car from the lender until you have paid off your monthly repayments, at which point the car becomes yours. Your monthly repayments are paid within an agreed time frame, usually between 12 and 60 months, and will differ dependent on how much deposit you put in.

Pros:

  • The repayment time limit is more flexible
  • Your interest rate is fixed, and will be lower depending on your deposit amount
  • You are more likely to be accepted if your credit score isn’t the best

Cons:

  • You don’t own the car
  • You have to pay a deposit
  • There can be additional fees (such as a transfer of ownership fee at the end of the contract)

Ideal for people:

  • Whose finances and circumstances are suited to fixed monthly repayments
  • Who don’t have the best credit rating
  • Who want to own the car at the end of their loan
  • Whose disposable income could change (e.g. starting a family, changing jobs)

Eligibility

Hire Purchase agreements are one of the more accessible car finance options. Although not everyone is accepted, there is normally a broader spectrum that this option will cater for, i.e. credit profiles that range from excellent to poor, and several employment statuses, including retired, young professional and self-employed.

At My Car Credit, we have access to a large panel of lenders that offer excellent Hire Purchase agreements. You can make an application on our website to determine your chances of being accepted and because we only carry out a ‘soft search’, there will be no trace left on your credit file.

Personal Contract Purchase (PCP)

You borrow the difference between what the car costs when you take out the loan and what it will cost at the end of the loan. This is called a Guaranteed Future Value (GFV). In other words, if the car costs £3,500 at the start of your loan and will cost £1,500 at the end of your loan, you need to borrow £2,000. The GFV also includes your estimated mileage as a factor. Normally this kind of loan will last between 18 and 48 months. At the end of your loan, you have three options: buy the car by paying what it costs at the end of your loan, give the car back and settle the loan, or part exchange for a new car.

Pros:

  • Your options are more flexible at the end of your loan
  • Service and maintenance packages, as well as warranties and insurance, are normally included
  • You could drive a new car that you couldn’t afford with a cash payment

Cons:

  • It’s more expensive than other finance options to buy the car outright
  • Additional charges are made if the mileage agreement is exceeded
  • You don’t own the car during the loan

Ideal for people:

  • Who want to drive a new model
  • Who frequently want to change the car they drive
  • Who don’t want the responsibility of owning a car outright

Eligibility

PCP is slightly stricter in terms of its acceptance rate. Normally, a fair credit score is required.

At My Car Credit, you can make an application on our website to determine your chances of being accepted for a Personal Contract Purchase and because we only carry out a ‘soft search’, there will be no trace left on your credit file.

If you need any help or advice about which finance option is best for you, whether it’s a Hire Purchase agreement, Personal Contract Purchase agreement or a Personal Loan, our team of Car Credit Specialists can advise you. Just give us a call!

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

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!

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

Couple calculating if they can buy a car on finance

After a house, buying a car is one of the biggest purchases you’ll ever make. When you come to apply for car finance, one of the first questions you’ll be asked is how much you are looking to borrow. Whilst this might seem like a simple question, there are actually many things that influence the total amount available to you.

Financial factors

Finance lenders will look at your application and consider various financial factors to determine how much they are willing to lend you. Things such as your credit profile – including your credit score and financial history (i.e. how you have dealt with previous loans and funds) – will all come into play. They will also consider your income, as well as the deposit you have available at the start of the process (although a deposit is not mandatory) to assess whether you can afford the repayments. Essentially, lenders are looking for reassurance from your information that you will be able to afford the finance you are applying for.

If you are sure that all these factors are in order, you are ready to begin your application. One of the best ways to start this process is to figure out your budget.

Budgeting

When working out how much you can afford to spend on your monthly car loan payments, you will need to be realistic. Ensuring that the payments will not overstretch you is vital to your future financial security. You’ll need to bear in mind the running costs of the car, including the rate of miles to the gallon (MPG), insurance rates, and general upkeeping, such as MOT and service costs. The Money Advice Service provides a useful budget planner on their website, which will help you to understand these incomings and outgoings.

When applying for car finance it is crucial that you can meet the monthly repayments comfortably and on time. Depending on your credit history, you may have to prove that you can do this. This can be done by showing three to six months’ worth of bank statements and/or payslips.

One way to make payments more affordable is to opt for a longer payment term. This does mean that you will pay more interest on the overall amount, but it will make the loan more manageable on a month-to-month basis. Bear in mind that the payment term can be affected by your credit profile, and will also be subject to the lender’s criteria.

Know what car you want

It’s important that you are realistic with the car you are looking to finance. You may have a dream car in mind but the finance cost – including running costs – may not be feasible on your budget. You must avoid committing to more than you can afford – missing payments can cause problems in the future, such as your ability to obtain finance of any sort moving forward. This is especially true if you do not have savings or your income reduces.

Also, if you try to apply for finance on a car that is outside of your budget, you are more likely to be turned down for car finance, which can impact your credit profile.

To help you in this area, Money Advice Service has a Car Costs Calculator, driven by CAP data, that will help you work out the yearly running costs on the car you have in mind.

Once you’ve found the car you want, the amount you can borrow will be determined by the value of the car. Some lenders will finance 100% of the value whereas other will lend for more than the value of the car, allowing you to purchase things like insurance, extras, and add-ons.

At My Car Credit, we’re lucky to have an extensive and diverse panel of lenders who offer a variety of finance options, including loaning up to 120% and catering for credit profiles that range from excellent to poor. We are also committed to helping people across a variety of situations, including retired people, young people, self-employed people, and so on.

Do the calculations

If you think you’re ready to begin the initial stages of your car finance application, our Car Finance Calculator will provide a monthly repayment figure, an APR, total cost of credit and total amount payable. Whilst your Car Credit Specialist will tailor a car loan deal for your circumstances, the Car Finance Calculator is great for getting a good indication of what you will be able to borrow.

Ready for the first stage of your car finance journey? Access our online Car Finance Calculator here.

My Car Credit will look at your personal circumstances and make sure that the finance agreement offered to you is one that you can afford. Your interests are always at the heart of what we do. If you need any more help or advice about how much you can borrow, our Car Credit Specialists can advise you. Just get in touch or visit our Help and Advice pages

Rates from 6.9% APR. Representative APR 13.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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

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!