Bad Credit Car Finance
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Rates from 7.9% APR. Representative 21.4 APR

Bad Credit? No Problem
Get the car you want and the financing you need, easily and without any hassle – even if you have a less-than-perfect credit score. Don’t let bad credit stand in your way of buying a car. We understand this, which is why our dedicated team of car buying experts partners with the most reputable bad credit lenders in the UK to provide you with excellent financing options, regardless of your credit history.
Bad Credit Car Finance Calculator
Representative example:
Borrowing £6,500 over 48 months with a representative APR of 21.4%, an annual interest rate of 21.4% (Fixed) and a deposit of £0.00, the amount payable would be £196.24 per month, with a total cost of credit of £2,919.52 and a total amount payable of £9,419.52
How to get car finance if I have bad credit?
One of the easiest ways to find cheap car finance it to compare quotes with us. We’ll show you the best deals from a variety of the UK’s most trusted car finance providers. You can compare hire purchase agreements based on, APR, deposits, term and age of vehicle.
There are plenty of things you can do to ensure you get the best deal:
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Choose your car wisely. See the best cars to buy.
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Make sure you buy your car from a reputable dealership. We will handle this for you.
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Make sure your car meets the minimum lenders requirements.
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A slightly newer car with less mileage may be a bit more expensive initially, but could save you money in the long run on vehicle maintenance and insurance premiums.
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Consider the lender you choose. Its important you not only get the lowest payment but you choose a lender that will help you if your circumstances change.
Pros and Cons of Car Finance with Bad Credit
Pros of Bad Credit Car Finance
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You can buy a car quickly without paying 1 the full amount upfront: Work, family, holiday: the world’s your oyster!
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It can boost your credit score: Making regular payments on any loan can improve your Credit Score – Car Finance is no different.
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Specialist support: Our Bad Credit Car Finance Lenders are specialists. They understand that your circumstances are unique, making it more likely to secure the car you need when you need it.
Cons of Bad Credit Car Finance
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Higher Interest Rates and Fees: Because you have poorer credit, you carry a higher risk for lenders and they’ll charge higher fees and interest to cover it. This means your finance may cost you more in the long term
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Risk of Repossession: If you can’t help keep up with your payments your lender could repossess you car – just like with any car loan. Always ensure you can cover your repayments or you could be out of pocket with no car on your drive
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An Impact on your Joint Hirer’s Credit Score: If you have any trouble paying off your finance, any Joint Hirer, or Guarantor, supporting you could be hit with a lowered Credit Score
Types of Bad Credit Car Finance
There are three main forms of payment options that you’’ll find. Each of these forms of car finance enables drivers to get back on the road in a safe, comfortable vehicle that’s available at a more affordable price than they would be to buy with a single up-front payment. By utilizing a finance deal, you will be able to spread the cost of the vehicle over a number of years, with a monthly payment plan in place to help you manage to cost over the course of the contract.

Hire purchase (HP)
This is a type of car finance where the full cost of the vehicle is spread across the duration of the contract. There is no large balloon payment at the end of the contract – you’ll either become the owner of the car automatically after the last payment, or after paying a small final fee, which can be as low as just £1.

Personal contract hire (PCH)
With this type of car finance, your monthly repayments tend to be much lower than with other deals such as HP car finance, however you will not own the car at the end of the contract. Instead, you’ll have the option to either hand the car back or select an upgrade – this is an ideal type of car finance for those who want to ensure they’ve got a new set of wheels on a regular basis.

Conditional sale
Conditional Sale agreement is another popular way of funding motor purchases. Your customers payments are spread equally over the agreed term at a fixed rate of interest and after the final repayment the customer owns the vehicle outright. Your customer won’t need to pay a “option to purchase” fee and will have full use of the vehicle and it will be registered in their name; however, they will not own the vehicle until all payments are made
Our top 5 bad credit car finance lenders
Advantage Finance
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Moneybarn
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AutoMoney
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Billing Finance
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MoneyWay
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Product Type | Hire Purchase | Conditional Sale | Hire Purchase | Hire Purchase | Hire Purchase |
Age Min-Max | 22-67yrs old | 21-75yrs old | 18-70yrs old | 18-80yrs old | 21-80yrs old |
Benefit Only Income | |||||
Joint Hirer | |||||
Provisional License | |||||
Self-employed | |||||
Gross Min Salary | £1000 pcm | £1000 pcm | £900 pcm | £1000 pcm | £1000 pcm |
Loan Value Min-Max | £2,000 - £15,000 | £4,000 - £35,000 | £4,000 - £25,000 | £2,000 - £25,000 | £3,000 - £25,000 |
Max Age of Vehicle at end of term | 15yrs | 15yrs | 14yrs | 15yrs | 15yrs |
Zero Deposits |
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Reputable bad credit car finance specialists
At ChooseMyCar, we’re not just a trusted car buying service in the UK, but also your reliable ally in securing bad credit car finance. Fully authorised by the Financial Conduct Authority and SAF approved, our proficient team is committed to empowering individuals with bad credit through tailored financial solutions. We compare options from over 17 different secured car finance companies, ensuring you make informed decisions and find competitive rates to get back on the road with confidence.