Car finance agreements are an accessible way to own the motor of your dreams. As well as being easy to set up with the help of online car credit specialists, you don't need thousands of pounds saved to get on the road. That’s especially helpful in a post-COVID-19 world where money may be tight.

However, despite their benefits, it’s important to remain vigilant when signing an agreement. This will ensure you understand exactly how your car finance deal will work. To avoid unnecessary charges and stress, read the contract thoroughly and watch out for the following stipulations.

1. Mileage limit

From the get-go, the contract will outline a mileage limit, meaning you may have to restrict the amount you travel each year. If you exceed this, expect charges anywhere between 3p to 70p per mile.

Before committing to a cap, work out what a realistic mileage looks like for you and anticipate how it could change over time. Ask yourself how much you travel each year on average, how often you commute to work via car and whether you’re planning to switch jobs or move house.

Ideally, allow for all possibilities by choosing a contract that provides more mileage than you’re expecting to do, even if this means paying a small additional fee upfront.

2. Service requirements

Some car finance agreements ask you to service the car on set dates at specific dealerships alongside general car maintenance. If the contract is unclear, ask your lender exactly what they expect from you and put any dates in your diary as soon as possible.

3. Damage charges

Most lenders allow for reasonable wear and tear, but the definition of “reasonable” varies. For peace of mind, make sure you’re on the same page when it comes to damage – what’s passable, what’s chargeable and how much will those charges be?

4. Payment schedule

Prepare to meet monthly repayments by double-checking the payment plan and, if possible, negotiating an arrangement that suits your income stream. Can you arrange a fixed repayment rate with your lender? If necessary, could you adjust your payment dates further down the line?

Try to get these details settled before signing the contract. It’s much harder to do so once the agreement is active.

5. Late payment policy

While lenders are sympathetic towards a change in circumstance, there are still penalties for missing repayments. It’s best to find out what these are so you can factor them into your final decision.

6. Insurance policies

Some agreements sound too good to be true, offering insurance policies that appear to be free. If you come across this, scrutinise the terms and conditions as it’s more likely you’ll be asked to cover the insurance as part of your monthly repayments.

Do you need help finding a fair car finance agreement?

That’s where My Car Credit comes in. We’re experts in securing the most preferable market rates for car financing through our panel of lenders – the largest panel out of any UK broker.

To learn more, call us on 01246 458 810 or drop us an email at – one of our specialists will get back to you as soon as possible.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • 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


  • 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


  • 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


  • 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


  • 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

Typical rate

Loan amount

Total payable




*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!