Bad Credit Car Finance
As a trusted intermediary, we partner with the UK's most reputable bad credit lenders to provide you with
excellent financing options, regardless of your credit history.
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Save money on your car finance
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ChooseMyCar specialises in helping individuals with bad credit secure car finance. As a credit broker, not a lender, we offer a range of finance options tailored to different needs, including popular plans like Hire Purchase (HP), as well as services designed specifically for those with less-than-perfect credit. Our mission is to make car financing accessible for everyone, regardless of credit history. Interest rates start from 9.9% APR. For example, borrowing £7,000 over 60 months with a REPRESENTATIVE APR of 19.9% and no deposit would result in a monthly payment of £184. The total interest paid would be £4,040, making the total amount payable £11,040.
What is Bad Credit Car Finance?
Bad credit car finance is a specialised type of auto financing designed for individuals with poor credit histories or low credit scores. It allows people who might otherwise struggle to secure traditional car loans to purchase a vehicle.
Watch our Detailed Guide on Bad Credit Car Finance
Video Transcript:
A Quick Guide to Bad Credit Car Finance
Introduction
Don't despair if you've been refused a loan because of bad credit. With Choose My Car, you can still get a car that fits your life and your budget quickly and easily with our financing options.
Bad Credit Car Finance
Our bad credit car finance lenders specialize in products for people who have a poor credit history or a low credit score. They focus on your current financial situation and ability to pay while acknowledging past factors that may have affected your credit score.
Key Considerations When Choosing a Lender
When selecting a lender for bad credit car finance, there are five main factors to consider:
1. Interest Rates
Bad credit car finance can come with higher interest rates, leading to higher overall costs. It's crucial to compare lenders to ensure you're getting the best possible rate.
2. Upfront Deposit
You might be wondering, "Do I need a deposit?" The answer is no—most lenders will fund up to 100% of the car's cost. However, putting down a deposit can offer benefits such as:
- Lower monthly payments
- Better chances of loan acceptance
- More financing options
3. Loan Terms
Check the length of the loan agreement and be aware of any early repayment fees that may apply.
4. Total Cost
Ensure you understand the total cost of the loan, including interest and any additional fees.
5. Repayment Options
Make sure the monthly payments fit within your budget. Failure to make payments could result in your car being repossessed and further damage to your credit score.
Vehicle Requirements
In addition to being financially prepared, you'll need to ensure the car you're purchasing meets the lender's minimum requirements:
- The car must have less than 120,000 miles.
- The car must be no older than 15 years by the end of the agreement.
- The price of the car should be at least £3,000.
- The car must be purchased through a reputable and approved dealership.
How Choose My Car Can Help
Choose My Car can help you secure the right lender and car for your financial circumstances. We're fully authorized by the Financial Conduct Authority and certified by specialist automotive finance organizations, so you can rest assured you're in safe hands.
We compare options from over 17 specially selected car finance companies that we know are reputable. This helps you make the best decisions and find competitive rates, allowing you to get back in the driving seat regardless of your credit score.
Conclusion
Why not apply today? The process is quick and simple. If you have any burning questions, our expert team is on hand and happy to help.
Choose My Car—Click. Save. Drive.
Why would I need Bad Credit Car Finance?
Bad credit car finance is ideal for you in the following scenarios
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You've Been Rejected by Traditional Lenders
Mainstream lenders often have strict credit requirements. If you've been turned down, our bad credit car finance options provide an alternative path to vehicle ownership.
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Your Credit Score is Low
A low credit score can make it challenging to secure standard car loans. Our bad credit finance is designed to work with less-than-perfect credit histories.
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You Have Little or No Credit History
Limited credit history can be as much of a barrier as bad credit. Our finance options cater to those who haven't had the chance to build a robust credit profile yet.
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You Need to Rebuild Your Credit
Bad credit car finance can be a stepping stone to improving your credit score. Regular, timely payments on your car loan can demonstrate financial responsibility and help rebuild your credit over time.
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You Require More Flexible Terms
Traditional car loans may not offer the flexibility you need. Our bad credit options can provide more adaptable terms to suit your financial situation.
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You Want to Avoid High-Interest Payday Loans
While bad credit car finance rates may be higher than prime loans, they're often a more affordable and responsible choice compared to short-term, high-interest alternatives.
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You Need a Car for Essential Purposes
Whether it's for work, family responsibilities, or medical needs, a car is often a necessity. Bad credit car finance ensures you can meet these essential needs despite credit challenges.
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You're Self-Employed or Have Irregular Income
If your income doesn't fit traditional lending criteria, our specialised finance options can take your unique situation into account.
No-Stress Bad Credit 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
Why Choose Us for Bad Credit Car Finance?
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Bad Credit SAF Approved
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No Upfront Fees
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High Approval Rates
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Access to 20 Lenders
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No Judgemental Service
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Same Day Pay-outs
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 | Moneybarn | AutoMoney | Billing Finance | 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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Let’s Get StartedReputable 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.
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