Bad Credit Car Finance

Compare lender quotes and you could save money on your monthly repayments.

  • Save money on your car finance
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Get a Quote No impact on your credit score

Rates from 9.9% APR. Representative APR 19.9%.
ChooseMyCar is a credit broker, not a lender.

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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


4 Years

48 monthly repayments

Best available rate 6.9%

Total cost of credit £1,140.16

Total repayment £9,140.16

Get a quote No impact on your credit score

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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Pros and Cons of Car Finance with Bad Credit

Pros of Bad Credit Car Finance

  • You can buy a car quickly without paying 1 the full amount upfront: Work, family, holiday: the world’s your oyster!

  • It can boost your credit score: Making regular payments on any loan can improve your Credit Score – Car Finance is no different.

  • 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

  • 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

  • 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

  • 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 Advantage Finance Moneybarn Moneybarn AutoMoney MoneyBarn Billing Finance MoneyBarn MoneyWay MoneyBarn
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
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.

Frequently Asked Questions

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.