Bad Credit Car Finance
Rates from 7.9% APR. Representative 21.4 APR
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We’re Bad Credit Car Finance Specialists
As car finance specialists, we understand that it’s not always possible to have the perfect credit score, whether you’ve not taken out credit before, or have experienced credit problems in the past. Bad credit doesn’t have to mean you can’t buy a car.
We know how difficult it can be to secure the right deal for bad credit car finance. That’s why we always go the extra mile to find the best deal for your individual circumstances. We’ll start by conducting a ‘soft search’ rather than a full credit check, so the initial application won’t affect your credit score. This will give us a clear indication on whether we can source credit for you and the kid of credit we can get. If what we initially offer seems right for you, only at this point, we will progress onto the full credit application.
Bad Credit Car Finance Calculator
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 can I 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:
Yes. While your Credit Score is important for Lenders when they decide on your eligibility, it doesn’t dictate it. While a good Credit Score could get you a better deal, specialist Lenders and Finance Arrangements (like Guarantor Loans or Joint Purchase) can get you behind the wheel even if you have very poor credit. You just need to talk to the right Lender. Find out how low scores affect car finance?
Yes. There is no minimum Credit Score for securing Car Finance but a lower Score can put add additional costs to the interest rate al you are offered. Lower scores often come with higher charges and interest rates (APR), meaning you pay more over the full term of your Loan. So long as this fits within your monthly finances, you can drive away in the car you need, even with a Credit Score of 500.
There is no minimum Credit Score for securing a loan of any kind, including Car Finance. A score as low as 200 will impact the charges and interest (APR) you’ll be offered on you loan, however. This means that you could pay much more over the length of the loan than someone with a higher score. Some Lenders might refuse a score this low but you could still be accepted by Poor Credit specialists.
We work with accredited and approved Low Credit Lenders from across the UK to find you the best deal even if you have a very low credit score and looking for car finance.
Yes. While a new car is more expensive, with higher monthly repayments, the technicalities of finance for New and Used cars are near-identical. If you can demonstrate that you can afford the deposit and monthly payments, Bad Credit needn’t prevent you getting finance on a New car, though it might make it a more difficult and expensive. See some tips on how to buy the best cars with bad credit
Any dealership registered with the Financial Conduct Authority can work with lenders or brokers to offer any legal Car Finance solution, including deals for those with poor credit. If a dealership knows they’ll be paid by the lender, there’s a good chance they’ll sell you the car: the risk is with the Lender.
We work with trusted Lenders all over the UK to offer Affordable Car Finance deals to our customers, no matter what their credit history. Choose a car from one of our dealers and we’ll find you the finance to buy it.
- If a lender cannot validate your income digitally, we’ll need your last 2 months payslips. Some newer banks are hesitant to share dates on earning, which is why we may ask.
- A copy of your driving licence or a provisional copy, if you’re a new driver.
- You may be asked to share open banking details if you have a lot of gambling alerts on your file or evidence that you have recently take out more credit.
- Some lenders have restrictions on the age and mileage of the car you want to buy – generally a car that has traveled less than 120,000 at purchase, and is not older than 10yrs old at the start of the agreement.
The process of securing your car through us varies depending on the lender you choose and your personal circumstances. We work hard to ensure the process is as quick, easy and painless as possible by taking care of as much of the paperwork as we can on your behalf.
As a broker, we don’t have direct control over the exact timing of the finance and delivery but you’re always welcome to talk to us about your purchase, every step of the way.
Unless your Credit Rating is particularly high, Dealerships and Lenders will want to look at your employment status. In most cases this means showing them up to three months of payslips as proof of earnings. These can be either paper payslips or digital payslips.
Yes. A big deposit helps in two ways: firstly, it proves that you’re good with your money and have been earning enough to save. Secondly, a higher deposit means that the amount you’re actually financing can be much lower. This means that monthly payments can be lower, as will your interest payments, saving you money in the long run. Read more about deposit contribution.
Car Finance must, by law, be in the name of the owner of the car being purchased. There are ways for you to purchase a car on finance for another person but the money must always come from their bank account.
You can become a co-signatory on the finance with certain finance deals. You can also set up a direct debit from your bank account to theirs for an identical amount. You can’t, however, have the money taken directly from your account on their behalf.
If a lender cannot validate your income digitally, we’ll need your last 2 months payslips. Some newer banks are hesitant to share dates on earning, which is why a Lender may ask. A copy of your driving licence, or a provisional copy, if you’re a new driver might also be requested.
You may be asked to share open banking details if you have a lot of gambling alerts on your file or evidence that you have recently take out more credit. This might show up when they perform a Credit Check – don’t take it personally: there are many reasons that your Credit Score may be Low and many ways to improve it.
Some lenders have restrictions on the age and mileage of the car you want to buy – generally a car that has traveled less than 120,000 at purchase, and is not older than 10yrs old at the start of the agreement.
Bad Credit Car Finance
If you’re looking to get yourself a new car, one of the major options to consider is car finance, which you’ve probably already encountered frequently as you search for the best deals for bad credit. When you’re looking for cheap car finance deals, you’ll want to be sure that you’ve got a good understanding of the type of car finance that’s in front of you – it isn’t always the same and each different type of finance works differently, with some more tailored to certain people than others. To help you to navigate your way through the car finance maze, we’ve put together our comprehensive guide to bad credit car finance, where you’ll be able to find all the information you might need to make an informed purchase decision. Read on to learn more about the deals available here at ChooseMyCar!
First, let’s take a look at the different types of car finance that are available.
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.
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
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.
Personal contract purchase
Similarly to HP and PCH deals, you will spread the cost over a number of years and repay the credit amount over a series of monthly payments. The factor that sets PCP aside is the lower monthly payments and option to buy at the end of the contract. Should you wish to purchase the car once the agreement is over, you’ll be able to pay a pre-arranged balloon payment.
This is just a brief overview of the different types of car finance that are available to those who suffer with poor credit, but you’ll be able to read more about each of these further down the page.
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
If you’d like to chat to our team regarding our deals or any questions that you may have, you can contact us online or by phone today!
How ChooseMyCar can help customers with bad credit
As car finance specialists, we understand that it’s not always possible to have the perfect credit score, whether you’ve not taken out credit before, are reliant on no credit checks, need help with debt management,or perhaps you have even filed for bankruptcy. Bad credit doesn’t have to mean you can’t buy a car.
We know how difficult it can be to secure the right deal for bad credit car finance. That’s why we always go the extra mile to find the best deal for your individual circumstances. We’ll start by conducting a ‘soft search’ rather than a full credit check, so the initial application won’t affect your credit score. This will give us a clear indication of whether we can source credit for you and the kind of credit we can get. For example, you might be in need of a guarantor loan or a specific PCP (personal contract purchase) or HP (hire purchase) car finance option. If what we initially offer seems right for you, only at this point, we will progress onto the full credit application.
Here are just some of the other ways we can help:
CCJs, defaults and arrears
Our network of trusted lenders can help you find finance, even if you have CCJs, arrears, IVAs or a debt management plan. It may be that you’re self-employed. Whatever your situation, we could help you to secure car finance.
Applying won’t affect your credit score
Approved, reputable dealerships
All our trusted dealerships are handpicked by our experts. That means quality cars, from quality dealerships. So, you can feel safe in the knowledge that your experience will be smooth from beginning to end.
Representative 21.4% APR
We’re always transparent with our finance deals. Plus, we always find you the best rate. For starters, our representative APR is just 21.4%. Because putting you first is what we do best.