car loan Archives - My Car Credit

Instant Car Loan: Does It Exist?

Person using phone to get an instant car loan

Are you dreaming of a new set of wheels but dreading the process of securing car finance? Fear not. Instant car loans take the stress out of auto finance and make it easy to lock in a lender. Of course, you are entering an official financial agreement which means there is some red tape to navigate. Read on to find out more about the process and decide if an instant car loan is right for you.

Instant car loan – myth or reality?

Picture this – you’ve found the car of your dreams and can practically feel the keys in your pocket. But before you can turn the ignition and put your foot down on the accelerator, there’s financing to consider. Enter the instant car loan – a fast and easy way to secure auto finance.

So, what exactly is an instant car loan? Put simply, it’s a finance option designed to give you quick access to funds. This means you can drive away in your chosen vehicle without delay. Loans are extended for all types of makes and models, from SUVs and estates to saloons and sports cars.

How does it work? Let’s pop the bonnet and take a closer look:

How instant car finance works

The appeal of an instant car loan lies in the streamlined process. Here’s a step-by-step breakdown of how it all works:

Easy online application

Forget queuing at the bank or filling out mountains of paperwork. With instant car finance, the journey begins with a simple online application. With just a few clicks you can be on your way to securing the funds you need.

Instant decision

Using advanced algorithms and instant search technology, lenders assess your application in record time. This allows them to make a preliminary decision in minutes, rather than days or weeks.

Digital documents

While the instant decision may leave you daydreaming of the open road, there are still a few hoops to jump through before funds hit your account. You’ll need to provide supporting documentation, such as proof of identity, income and credit history, to verify the information provided in your application. Think of it as dotting the i’s and crossing the t’s to ensure everything is in order.

Final approval and funding

After documents have been received by the lender the final approval process swings into action. The lender conducts a thorough review to ensure everything checks out. Once the final stamp of approval is given, funds are transferred to your account. In some cases, the lender may purchase the car outright on your behalf. In both scenarios, you’ll repay the loan in monthly instalments, along with interest and any additional fees.

Reality check: understanding the fine print

Before you hit the motorway, let’s address the elephant in the room – the reality check. While the appeal of instant car finance is undeniable, it’s important to recognise that approval is preliminary. The “instant” decision you receive is a promising sign that you meet the initial criteria set by the lender. However, to seal the deal and secure funds, additional steps are required, including that should you progress, some lenders may perform a hard search on your credit file.

Your instant car loan: the final steps

So, how do you get the green light for your instant car loan? Once you’ve received your instant decision, the next steps involve submitting supporting documentation and passing a final review process. This can include a hard credit check which sees the lender take a deep dive into your financial history using credit reference agencies (CRAs) like Equifax, Experian and TransUnion. All three CRAs have access to information about British adults and their credit histories. This information is used to generate a credit score which is used to assess your risk as a potential borrower.

In the final stage you’ll also lock in the terms and conditions of your loan. This includes the total amount you’ll borrow, length of your agreement, monthly repayments and APR.

The role of brokers

Most banks and high street lenders are too cautious to issue instant auto finance approval. This is where a broker can really boost your chances of success. Instead of partnering exclusively with a single lender, brokers work with multiple lenders. This exposes your application to far more potential creditors, including those specialising in auto finance for borrowers with less-than-perfect credit scores.

Instant car finance – a road worth exploring

While the concept of an instant car loan isn’t necessarily as simple as it sounds, it’s a road worth exploring if you’re seeking swift approval and streamlined financing solutions. It’s a fast way to get the ball rolling and get an idea of your different options, including what type of terms, monthly repayments and APR rates to expect.

Of course, it’s important to approach instant car loans with a pinch of salt and recognise that approval is preliminary. By understanding the process and being prepared to navigate the additional steps required, you can enjoy the benefits of instant car finance and hit the road without delay.

Hit the road with My Car Credit

Ready to get behind the wheel? Whether you’re in the market for a PHEV Kia Sportage to slash your tailpipe emissions or an athletic Audi A3 with a luxe trim level, apply for your instant car loan today and take the first step towards automotive ownership.

As part of Evolution Funding, the UK’s largest motor finance and technology provider, My Car Credit leverages award-winning technology to improve your chances of acceptance. Our unique matching algorithm ensures you find the best product and lender for your circumstances, at a competitive rate. We’re passionate about seeing every quick car finance application right through to the end, right through to the final cash deposit in your bank account.

A great place to start is by using our online car finance calculator. Here you can get an idea of acceptance probability and cost, all without affecting your credit score. Please note that should you progress, some lenders may perform a hard search on your credit file.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

What Checks Are Done for Car Finance?

Car finance is a way of making the process of purchasing a new or nearly-new vehicle easier, allowing you to spread the cost of your car over a series of affordable repayments.

In order to secure car finance, you may need to provide important personal information, so it’s useful to have certain documents and information to hand. Read on as we outline the checks that are usually done for car finance.

What checks are done for car finance?

The most important checks for car finance tend to be a financial assessment, where lenders will ascertain your employment history and income status, including a credit check. But there are other pieces of information that car finance providers will often ask for in order to gauge whether you’re a responsible borrower or not.

Driving licence

It’s essential that you have a valid driver’s licence when applying for car finance. Without this, you will most likely be rejected.

The car finance provider may contact the DVLA in order to check the authenticity of the driver’s licence. They will also contact the DVLA if you have lost your driving licence, and will usually ask for other proof of identity at the same time.

Proof of identity

For some car finance providers, your driver’s licence will qualify as enough proof of identity. They can cross-reference it with the personal details you’ve provided, as it shows your name, address and date of birth. Others may require alternative documentation. Typically, this may be a passport. If you haven’t entered it as part of your car finance application already, supplementary information like your full name, date of birth, residential and marriage status may also be requested.

Other personal details you may be asked include your current job title and employment details, like whether you’re employed or self-employed. Marital status is another box you may have to fill, though it isn’t going to be a deal breaker in any lender’s criteria.

Address and history of address

Your car finance provider needs to ensure that you’re not making a fraudulent application, and that you’re unlikely to attempt to evade repayment. Asking for your proof of address is one step in the process of confirming this, as it makes you traceable.

You’ll usually be asked for your proof of address history for a minimum of the past three years. This can be in the form of utility bills, council tax and bank statements. You’ll also need to demonstrate your current address, too.

Employment history and proof of income

Expect to be asked about your employment and provide details of your salary and job title. A bank statement will usually be asked for, but payslips and the details of your employment may suffice. If you’re self-employed, you’ll need to provide further documentation.

If your lender feels that you may miss repayments, then your application will likely be rejected.

Credit report

If you have a history of making repayments in a timely fashion, then you’ll have a better credit history and a higher score. Your application is, therefore, more likely to be greenlit.

That said, there are ways of getting car finance even with a poor credit score – you just need to determine whether your finance provider will do so.

What is your finance company checking for?

We’ve covered what checks are done for car finance. But why are they being done? In short, car finance companies need to make sure your car finance application meets their own criteria.

Checking your identity

First and foremost, there are basic checks to ensure nobody is committing fraud. Car finance companies want to know you are who you say you are, for obvious reasons. That’s why they’ll ask for your driving licence and other proof of identity. You’ll also need to provide your address and typically prove that with bank statements or utility bills.

Assessing your reliablity

Other checks are done to assess your reliability for car finance. In other words, how likely are you to keep up with monthly car finance payments? This is primarily done through your credit report, which assesses your credit history.

A car finance company can complete a soft credit check or hard credit check to do so. Soft credit checks provide an overview of your credit report, such as a poor credit score. On the other hand, hard credit searches provide a more in-depth look at your credit history, such as missed payments.

Reliability is also assessed through employment history and address history. If a car finance company sees that you’ve been in and out of jobs, it indicates an unstable financial history. Similarly, looking at the past few years’ address history make raise some flags if you’re constantly moving home, as some people do this to avoid debt.

Looking into affordability

Your credit report isn’t the only thing finance companies use to decide whether you’re accepted for car finance. Another key factor is affordability. Put simply, can you afford the loan repayments on your finance application?

Naturally, an important check here is employment. Your finance company will want to see stable income to ensure you can make monthly payments over the course of your agreement. Additionally, they’ll look at other financial commitments you have. Somebody could be earning a great wage, for example, but already paying out big sums for their mortgage, phone contract, and an existing personal loan.

Checks completed for over a large panel of lenders

There are a number of checks that need to be done when processing car finance. But they don’t have to be a hassle. At My Car Credit, we aim to make the process as simple as possible, with fast and easy online applications.

As a trusted car finance broker, we compare car finance deals from a large network of lenders. That gives you the best of both worlds – the ability to compare deals for your new car without having to provide proof of identity and complete various checks with different lenders.

Additionally, we’ll only perform a soft credit check initially. That means you don’t have to worry about a hard credit check leaving a mark on your credit file, only to be rejected when you apply for car finance. We only use hard credit checks when applications reach the later stages, so you’re much less likely to be rejected.

If you have any questions about the application process and documentation required for car finance, visit My Car Credit and check out our handy online finance calculator to begin your car buying journey.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

What is a Good APR for Car Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

apr calculator car finance calculator car financing car loan credit rating credit score finance checks identity interest rate Jan24

Try Our Classic Car Financing Calculator

Are you dreaming of a James Bond moment in a gleaming Aston Martin DB5? Maybe you love the boxy silhouettes of Series Land Rovers, or the retro feel of first-generation Volkswagen Beetles. Whatever makes you tick, classic car finance can help you secure the keys to your very own piece of motoring heritage.

Like standard auto loans, budget is front and centre when financing a classic car. This is where the classic car financing calculator from My Car Credit steps up. Designed to make the budgeting process simple and straightforward, our purpose-built calculator takes the headache out of number crunching. Use it to finetune your budget, estimate monthly payments and explore financing options tailored to you.

Want to know more? Read on for a closer look at our car financing calculator and how it can help you secure a loan for a vehicle as unique as you.

How the classic car financing calculator works

Using our classic car financing calculator is easy. Simply input a few pieces of information to generate an instant estimate of your monthly payments. This includes:

Loan amount

The total amount you wish to borrow to fund your classic car purchase.

Repayment terms

Select the repayment term that best suits your financial situation, typically three to five years.

Personal credit rating score

Provide your personal credit rating to help us calculate what financing options you may be eligible for.

Once you’ve entered this information, our calculator will use a representative APR to calculate an estimate of your monthly payments. It’s a quick, easy and transparent way to find out what to expect in terms of classic car financing.

Crunch your numbers with My Car Credit

In the market for a classic car? Use our classic car financing calculator to crunch your numbers and gain valuable insight into your auto loan options. Play around with loan amounts, explore repayment terms and generate instant estimates for different APRs. Whatever your goals, our classic car financing calculator can help you find the right balance for your budget.

Why use the classic car financing calculator?

Quick and easy

Our calculator is fast, easy to use and generates instant estimates.

Customised solutions

Generate personalised financing options to match your individual circumstances.

Transparent pricing

We use representative APR to provide you with clear and transparent estimates of classic car financing costs.

The next step: a soft search

What’s the next step after using our classic car financing calculator? We’ll take your information and use it to run a soft search. Unlike a hard search, it doesn’t leave a mark on your credit file and isn’t visible to other lenders. It’s a risk-free way to find out if you’re eligible for car finance without compromising your credit score. Please note that should you progress, some lenders may perform a hard search on your credit file.

Don’t let financing stand in the way of classic car ownership. Head to the My Car Credit website to check out the classic car financing calculator to find out more and explore your classic car financing options.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

What is the Average Car Loan Interest Rate?

What is a Good APR for Car Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

apr calculator car finance calculator car financing car loan classic car credit rating credit score Jan24

PCP Finance Explained – Personal Contract Purchase Guide

At My Car Credit, we understand that when it comes to purchasing your dream set of wheels, budget can be a barrier. This is where Personal Contract Purchase (PCP) finance comes in. Flexible and affordable, the auto finance option is one of the most popular ways to purchase a car in the UK.

Want to know more? Read on for a complete guide to PCP finance explained, including how it works and why it could be a great solution for your next car purchase.

What is PCP finance?

PCP is a type of car finance that allows you to secure the keys to a reliable car, without the hefty upfront costs or ownership commitment of a traditional purchase.

Here’s how it works:

Get the ball rolling: The early stages of a PCP agreement usually see your financial provider perform a credit check. Ideally, they’ll use a ‘soft search’ that won’t leave a mark on your credit score. The fun part is researching cars and deciding on a vehicle. When this is done, you’ll discuss the terms of your PCP agreement with the lender. This usually includes the value of your initial deposit and how long you’d like the agreement to be.

Deposit: You put down an initial deposit to show the dealer you’re serious and lock in your preferred car.

Drive away: Once the paperwork is sorted, it’s time to drive away in your new car and enjoy the open road.

Monthly payments: After your initial deposit, you pay manageable monthly instalments. These payments typically cover the depreciation of the car over the agreed term. With PCP finance, your monthly payments are typically lower than with other options as they don’t cover the full cost of the car. This can make getting behind the wheel of a new model surprisingly affordable.

Balloon payment: At the end of the PCP agreement, you have a few choices. You can either return the car (in good condition, of course), part-exchange it for a new one, or pay a final ‘balloon payment’ to buy the car outright. If you need more clarification on how balloon payments work, simply ask your lender for more Personal Contract Purchase information.

The benefits of PCP finance explained

Wondering if PCP finance is the right route for you? Let’s break it down with a closer look at some of the key advantages:

Lower monthly payments

PCP payments are usually lower compared to a traditional car loan or Hire Purchase (HP) agreement.

Flexible choices

PCP gives you options at the end of the agreement, allowing you to decide if you want to keep the car or swap it for a new one. If you need your options at the end of your Personal Contract Purchase, don’t hesitate to ask your lender for clarification.

Newer cars

Love that new car smell? PCP agreements allow you to get behind the wheel of a car that’s fresh from the showroom.

Lower upfront costs

Smaller deposits make PCP a real drawcard for motorists without much capital to invest.

Fixed interest rates

With PCP you’ll enjoy the comfort of fixed interest rates, making it easier to budget.

Warranty cover

Many PCP deals come with manufacturer warranties, giving you peace of mind when it comes to maintenance.

PCP vs. other auto finance options

Still not sure if PCP is your ideal route? Now we’ve got PCP finance explained, let’s compare it to other options to get a better understanding of the pros and cons:

Hire Purchase (HP)

HP agreements let you spread the cost of the car over a set term, but instead of options at the end of the agreement you own the car outright. It’s like paying off a mortgage and owning your home when the final instalment is made.

Personal Contract Hire (PCH)

PCH agreements involve leasing a vehicle throughout your duration of a contract. Unlike PCP and HP loans, PCH doesn’t involve borrowing money for car ownership. Instead, you initiate the leasing agreement with a non-refundable deposit and then make monthly ‘hire’ payments that give you use of the car. At the end of the contract, you’ll return the vehicle without the option to purchase it and become the outright owner. It’s important to note that PCH agreements often come with restrictions, including mileage limits and caps on acceptable wear and tear.

Personal loan

With a personal loan, you borrow a lump sum to purchase the car and own it from day one. Interest rates are usually significantly higher for personal loans.

Hit the road with PCP Finance

Ready to start your PCP finance journey? Remember, it’s important to fully understand the terms and conditions of your PCP agreement before you sign on the dotted line. It’s like checking the weather forecast before a long drive – being prepared is the key to a seamless trip.

Why choose My Car Credit for PCP finance?

At My Car Credit, we’re your trusted co-pilot when it comes to securing the best PCP finance deals. Why choose us for PCP finance?

Expertise: Our team has the knowledge and experience to guide you through the entire PCP process, from start to finish. If you need PCP finance explained, we have your back.

Variety: We work with a wide range of lenders to offer you the best PCP deals. Worried about having car finance declined? As well as high street banks, we partner with smaller lenders who can help you get finance, even if your credit score is less-than-perfect.

Choice: As well as partnering with a wide range of lenders, we offer a huge amount of choice when it comes to cars. No need to limit yourself to particular makes and models. We pride ourselves on helping every client secure the keys to their dream car, whatever that might be. It’s like having access to a huge showroom of cars, all in one place.

Flexibility: We tailor our PCP agreements to suit your specific needs, offering you a good amount of flexibility when it comes to things like deposit size, contract length and vehicle options.

Support: Need your Personal Contract Purchase explained? We’re here to answer your questions, provide guidance and make your PCP journey as smooth as possible.

Ready to get behind the wheel? Give us a call on 01246 458 810 to find out more about PCP finance options or email us at enquiries@mycarcredit.co.uk for a speedy response.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Am I eligible for car finance?

Can You Pay Monthly for a Used Car?

Check for car finance without affecting your credit score

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

car buying car finance car loan credit score hire purchase PCP

What is the Average Car Loan Interest Rate?

Flexible and affordable, auto finance is one of the most popular ways to purchase a car in the UK. A good understanding of the average car loan interest rate is one of the best ways to make smart and informed decisions when choosing a lender. In this article, we’ll take a closer look at benchmark car loan interest rates in the UK, as well as exploring the difference between the Bank of England rate, cash interest rate and APR (Annual Percentage Rate).

Britain: a nation of borrowers

Brits love to borrow, with the latest data from the Finance and Leasing Association (FLA) revealing more than four in every five new cars purchased by individual motorists in 2022 were funded by lenders. With so many benefits on the table, it’s no surprise auto finance is such a popular option in the UK.

What’s considered ‘average’ in the UK?

Average car loan interest rates can vary significantly between lenders. Factors like your personal credit score, financial history and the type of loan you apply for can also influence your interest rate. So, what’s considered ‘average’ in the UK?

Bank of England interest rate

The current interest rate stated by the Bank of England is 5.25% though this is expected to increase over the coming months. Most lenders take this base rate, then add to it based on a variety of factors. It’s rare to find any type of loan, whether it’s a home mortgage, cash loan or auto finance agreement, that uses the base interest rate stated by the Bank of England.

Cash interest rate

This is the interest rate the lender chooses to use on the principal loan amount. For example, if you borrow £10,000 at an interest rate of 6%, you’ll be paying an additional £600 in the first year. It describes the cost of borrowing the money itself and doesn’t include any fees or charges added by the lender. Using a car finance calculator is a quick and easy way to crunch the numbers.

Annual Percentage Rate (APR)

APR offers a more comprehensive view of the total cost of your loan. As well as the cash interest rate it also includes extra fees and charges. For example, if you’re offered a car loan with a cash interest rate of 7%, but the APR is 12%, you’ll be paying 5% in fees.

APR is designed to provide transparency to borrowers and make it as easy as possible to calculate the total cost of your loan. Comparing APRs offered by different lenders is one of the best ways to secure a good deal on car finance.

In the UK, borrowers with excellent credit scores should aim for an APR of 10.9%. This is considered a good average car loan interest rate and allows to enjoy the benefits of auto finance without absorbing too many extra fees or charges.

Get a great deal with My Car Credit

Why settle for an average car loan interest rate when you could unlock an even better deal? At My Car Credit, we’re committed to helping Brits secure best-in-class APR. Rates vary depending on factors like your credit score but ultimately, when you enlist the help of My Car Credit, you’ll enjoy the peace of mind you’re securing a great deal.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is a Good APR for Car Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

apr calculator car finance calculator car financing car loan credit rating credit score interest rate

Why Was I Denied a Car Loan with Good Credit?

A good credit score can feel like a gold star on your financial history report. But unfortunately, a good credit score doesn’t guarantee approval when it comes to car loan applications. If you’ve been denied a car loan with good credit, this article is for you.

Below, we go into more detail about why a good credit score isn’t the be-all-and-end-all for car loan applications. We also take a look at how to overcome the hurdle, and what you can do to increase your chances of securing finance with a trusted lender.

What is a credit score?

Before we start, it’s important to define what a credit score is and why it matters. Basically, a credit score measures the overall health of your financial situation. A high score presents you as a reliable and trustworthy borrower, while a low score indicates a higher level of risk and an increased chance of defaulting on your loan. The higher your score, the more appealing you are to lenders.

Scorecards are used to calculate your credit score and create an overall picture of your borrowing behaviour. Information like your credit card repayment history and previous credit applications, as well as factors like your electoral roll status and address history, can affect your credit score. That said, your credit score isn’t the only factor considered by lenders when assessing car loan applications. This means you may be denied a car loan with good credit.

Good vs poor credit history with Equifax, Experian and TransUnion

In the UK, three major platforms are used to calculate credit scores – Equifax, Experian and TransUnion. All use a different number system, so don’t worry if your credit score varies between platforms.

Equifax: 0 – 1000
Experian: 0 – 999
TransUnion: 0 – 710

Experian classes 881-960 as good, while TransUnion’s threshold is 604-627 and Equifax goes as low as 420-465. As you can see, a good credit rating with one credit agency doesn’t mean you’re always classed as low risk. It depends which agency is used by each lender.

What doesn’t affect a credit score?

Credit scores are used to assess your financial history and give lenders an idea of your reliability when borrowing money. They’re not designed to reflect your overall wealth or purchasing power. The following criteria aren’t considered when calculating your credit score, however they may help explain why you were denied a car loan with good credit.

Student loans
Savings account balances
Employment history
Parking tickets or driving offences
Criminal record
Medical record

Reasons why you may have been denied a car loan with good credit

If you’ve been denied a car loan with good credit, here are some common reasons to consider. They don’t affect your credit score directly, but they can have an impact on the final decision of the lender.

Financial links

It’s important to understand that you’re not necessarily the only person assessed when applying for car loans. Financial connections to irresponsible borrowers, such as partners, family members or flatmates, can have an impact on your success rate and may help explain why you’ve been denied a car loan with good credit.

For example, if your legal partner has a lacklustre borrowing history and a poor credit score, this can impact your chances of a successful application. Even if you’re no longer together, they’re still considered a financial risk. Similarly, if you once shared utility bills with an irresponsible ex-flatmate, their borrowing behaviour can have an impact on your car loan application.

These types of financial links won’t affect your personal credit score, but they may be considered by lenders when assessing applications and calculating the overall risk factor. Lenders may check the credit reports of these individuals and use data to make a final decision on whether to approve or deny your application.

Check the Financial Associations section in your Credit Report to find out if you have any links. Depending on whether the connection is still active, it may be possible to submit a disassociation request and remove the person from your Financial Associations list.

Employment status and salary

The ability to repay your loan is a major factor considered by lenders. They won’t hesitate to follow up on employment and salary information stated in your application, and if the numbers don’t match up, your loan may be declined. This means that even with a stellar borrowing history, you may be denied a car loan with good credit if your employment status and income can’t be verified.

Another issue in this respect comes when you’re self-employed. While it’s great to work for yourself, this can negatively impact your ability to get car finance because it’s less secure than income from an employed position. Working for yourself, your salary can fluctuate month to month and year to year, making it harder for finance companies to assess affordability – which brings us onto…

Affordability

One of the most important factors for any finance company is affordability. Lenders want to know whether you can afford the repayments based on your current circumstances. While your credit rating reflects your history with finance companies, it’s also important to consider your incomings and outgoings.

As well as your salary, they’ll look at existing financial commitments like mortgage payments, utility bills and personal loans. If you’re already in financial difficulty, regardless of your credit history, you could be refused car finance.

Inconsistency in applications

Lenders don’t just check your current application. They may also cross-reference it with previous applications. Inconsistencies can raise instant red flags and may explain why you’ve been denied a car loan with good credit. For example, an application that states a £100,000 salary preceded by an application that states a £30,000 salary may be flagged.

Existing debt

Current debt isn’t factored into your personal credit score. However, it may be considered by lenders when assessing car loan applications. Ultimately, they want to be sure you can repay the amount you borrow. For example, if you apply for a £50,000 car loan but have credit card debt of £10,000 and a home mortgage of £300,000, your application may be flagged as high risk. It doesn’t necessarily mean you’re ineligible for a car loan, but it is something to consider when investigating why you’ve been denied a car loan with good credit.

What to do if you’ve been refused car finance

At the end of the day, no application is guaranteed, regardless of how high your credit score is. Lenders will always scrutinise applications and consider a variety of criteria. It’s important to understand exactly what goes into the decision making process to maximise your chances of success.

Review your application

If you’ve been refused car finance, the simplest thing you can do is review your car finance application. Look for any inaccuracies such as your address, salary and other financial information. Many lenders may point these out to you to help you get car finance.

Apply for a cheaper deal

Another simple trick is to apply for a cheaper deal that suits your personal circumstances. You could find a cheaper car, which would mean lower monthly payments.

You can also check the different types of car finance available.

Pay off existing debt

If you have lots of existing credit agreements, you might want to consider paying some off before applying for car finance – if you have the means to do so, of course. This could reduce the risk for lenders, as you’ll be in a better position with fewer outgoings and only one lender (or a select few) to repay.

Denied a car loan with good credit? We can help!

Being denied a car loan with good credit is frustrating. The good news is, we’re here to help. At My Car Credit, we have access to one of the largest and most diverse lending panels in the UK. This helps us to match your application with a wide range of trusted lenders, instead of the usual high street banks.

My Car Credit is fronted by a dedicated team of experts who can help you understand more about car finance eligibility and get to the bottom of why you’ve been denied a car loan with good credit. It’s this commitment to success that helps our customers get behind the wheels of their dream cars faster.

To discover how My Car Credit can help you obtain the right car finance, check out our online calculator to crunch the numbers on financing your next car.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

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 Get a Car Loan Instantly Online?

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

Can I get a car loan online?

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

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

How long does it take to secure a car loan?

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

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

Your credit score

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

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

Lack of documentation

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

Not doing your homework

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

Car loan or car finance?

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

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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

How Long Does It Take to Buy a Car?

How Does Auto Finance Work?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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

Is car finance easier to get than a loan?

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

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

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

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

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

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

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

A personal loan

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

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

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

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

Car finance

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

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

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

Start your car finance journey today

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

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Advantages and Disadvantages of PCP Car Finance

Financing a Second-Hand Car: 4 Options

7 Advantages of Used Car Hire Purchase

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

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

What Does ‘Finance’ Mean When Buying a Car?

When it comes to car finance, there’s a lot of jargon and acronyms, and it’s easy to find yourself questioning what each finance agreement really means.

This post aims to help you get to grips with what different types of finance actually mean when buying a car, and how they work. Once you’ve understood the different kinds of agreements available, you’ll be on your way to securing a car loan quote that will work for your circumstances.

So, what does ‘finance’ mean when buying a car? Read on to learn more…

What does ‘finance’ mean when buying a car?

In essence, car finance makes the purchase of a car more affordable. It’s a credit agreement between you and the lender, allowing you to make full use of the vehicle whilst paying it off in cost-effective monthly instalments according to a pre-agreed schedule. The amount you pay off will also include additional interest on top.

What are the different kinds of car finance?

The right car finance for you will depend on the kind of agreement and terms that you’re looking for, as well as your own driving preferences and needs.

Car loan

A car loan is a type of personal loan but is specifically designed for use on vehicles.

With a car loan, you borrow the money from either a bank or building society. Once you’ve bought the car, you are its outright owner. You’ll repay the car loan over time via instalments, with added interest. Typically, a car loan is more likely to be granted to those with a good credit score – there are other kinds of car finance available for those with poor credit ratings.

Personal Contract Purchase (PCP)

Do you like mixing up the vehicles you drive? Are you happy sticking to mileage caps or paying excess fees for any vehicular wear and tear? Would you like flexibility in choosing whether or not to own the vehicle at the termination of the agreement? Then PCP is potentially the car finance for you. In fact, PCP is the most popular kind of car finance because of its low monthly repayments and flexibility.

With PCP car finance agreements, you’ll pay a deposit and monthly instalments (plus interest). The larger your deposit is, the lower these payments will be. These payments are typically lower than other kinds of car finance as you’re only paying for the car’s depreciation in value during the time that you’re using it.

You can also choose whether or not you want to own the car once you’ve fully paid off the finance. If you do, you’ll pay a final balloon payment to make up the remaining value of the car. If not, you can hand the car back to the dealer with nothing more to pay. Be aware that you won’t own the car unless you opt to do so at the agreement’s termination.

Hire Purchase (HP)

Hire purchase car finance is similar to PCP, but a little more straightforward. You’ll typically make a deposit of around 10% with HP finance, then make fixed monthly payments according to a pre-determined schedule. Repayment terms can be relatively flexible, and there are often competitive interest rates with HP finance.

Like with PCP, you won’t own the vehicle until you’ve made the final repayment of your agreement, but you can opt to do so with a final balloon payment. After this, you can choose to part exchange, sell or keep the car. However, unlike PCP, you won’t usually face mileage caps, so HP finance may be preferable for you if you’re regularly making long journeys.

Personal Contract Hire (PCH)

PCH car finance is when you lease the car, which is why it’s also known as a car leasing agreement. You will never be its outright owner – you’re essentially hiring it until the end of your finance agreement. In this way, PCH differs from either HP or PCP. Though it’s technically not car finance, as you’re not borrowing money, you’ll still see this term frequently used when discussing car financing options.

With PCH, you’ll typically pay a non-returnable deposit as well as your monthly repayments. At the agreement’s end, you’ll hand the car back. If you’ve gone over the mileage cap or have made unreasonable vehicular wear and tear, you’ll pay a penalty fee.

Find the right car finance for you with My Car Credit

Shopping around for car finance can seem stressful, but it needn’t be. My Car Credit aims to make the process of securing your dream deal stress-free and streamlined. Contact our expert team today on enquiries@mycarcredit.co.uk to start your car finance journey.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

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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Car Loan Early Repayment – Is It Worth It?

There are many reasons why people consider paying off their car finance early. But whether you are eligible to do so depends on your personal circumstances, as well as the details of your car finance agreement.

You should expect to pay a settlement fee if you opt for early repayment of your car loan. As such, whether or not early repayment is worth it will vary from person to person, but you do need to think hard about whether you can afford to do so.

What is an ERC?

An ERC (early repayment charge, also known as a settlement figure or resettlement fee) is a penalty charge that you’ll likely have to make if you opt for early repayment of your car loan. This charge typically amounts to two months’ worth of interest, depending on your lender. Whether or not your car finance lender will charge you an ERC, depends on their policies and the type of car finance agreement you have.

Before you decide on an early repayment, it’s essential to know whether you may be liable to pay an ERC, so check with your finance provider first. Once you’ve asked them for this figure, you usually have around 28 days to decide if you want to proceed with the early repayment of your car loan.

How does car loan early repayment impact your credit score?

You may think that making an early repayment of your car loan would improve your credit score, but this isn’t necessarily the case.

If you pay off your car loan early, the account will show as closed within your credit report. It’s only open accounts that have an impact on your credit score, and other lenders sometimes like to see these accounts, so they can gauge how timely you are with repaying your debt. However, once your car finance account is closed, any benefit on your overall finance management won’t be evident on your credit report.

If you need your credit report to work in your favour – for example, if you’re applying for a mortgage or re-mortgaging – then you may be better off keeping your car finance open on your credit report.

Is it worth early repayment of a car loan?

Whether or not the early repayment of your car finance is worth it depends entirely on your situation and the terms of your agreement. You need to ask yourself whether you can truly afford the early repayment or settlement fees, and whether it might be beneficial to stay in the finance deal for the sake of your credit score.

Other factors to consider include whether you’re in negative equity. Essentially, if the settlement figure that you’ll have to make for early termination is higher than the value of the car, it’s probably worth waiting out your car finance term in full until you’re in positive equity.

Similarly, if you’re already close to the end of your finance term, it’s likely cheaper to stick to your current finance deal and finish all of your repayments, rather than face the settlement (ERC) fee.

Returning the vehicle

Another factor to consider if you’re on either HP or PCP finance is whether you want to return the car at the end of the finance term. Under the Consumer Credit Act of 1974, you can opt for ‘voluntary termination’ of the agreement, provided you’ve already paid half the cost of the car or will make up the difference between what you’ve paid and that number. However, if you do so, you won’t be able to return the car to the finance provider – you will be its legal owner.

This may be beneficial if the car’s value is higher than that of your remaining payments, as, once you’ve paid any settlement fee, you can then sell the car on and make a profit. But you may still be charged by your lender if you opt for voluntary termination. This amount is capped by law, but it’s still worth considering. Companies may also react badly to frequent voluntary terminations on your credit file, too.

Discuss your car finance needs today

If you want to get a car finance quote, discuss early repayment of your car loan, or have any further questions about the process, you can email My Car Credit on enquiries@mycarcredit.co.uk today.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

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

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

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

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

Require more help?

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

or call 01246 458 810

car finance options car loan credit score early repayment Jan24

Instant car loan – myth or reality?

How instant car finance works

Easy online application

Instant decision

Digital documents

Final approval and funding

Reality check: understanding the fine print

Your instant car loan: the final steps

The role of brokers

Instant car finance – a road worth exploring

Hit the road with My Car Credit

Rates from 9.9% APR. Representative APR 12.4%

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Car finance is a way of making the process of purchasing a new or nearly-new vehicle easier, allowing you to spread the cost of your car over a series of affordable repayments.

What checks are done for car finance?

Driving licence

Proof of identity

Address and history of address

Employment history and proof of income

Credit report

What is your finance company checking for?

Checking your identity

Assessing your reliablity

Looking into affordability

Checks completed for over a large panel of lenders

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Related articles

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How the classic car financing calculator works

Loan amount

Repayment terms

Personal credit rating score

Crunch your numbers with My Car Credit

Why use the classic car financing calculator?

Quick and easy

Customised solutions

Transparent pricing

The next step: a soft search

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Require more help?

At My Car Credit, we understand that when it comes to purchasing your dream set of wheels, budget can be a barrier. This is where Personal Contract Purchase (PCP) finance comes in. Flexible and affordable, the auto finance option is one of the most popular ways to purchase a car in the UK.

What is PCP finance?

Here’s how it works:

The benefits of PCP finance explained

Lower monthly payments

Flexible choices

Newer cars

Lower upfront costs

Fixed interest rates

Warranty cover

PCP vs. other auto finance options

Hire Purchase (HP)

Personal Contract Hire (PCH)

Personal loan

Hit the road with PCP Finance

Why choose My Car Credit for PCP finance?

Rates from 9.9% APR. Representative APR 12.4%

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