Finance with Car Credible

You could get into a newer car and finance deal

Whether you wish to upgrade, downsize or just fancy a change, a newer car and finance deal could be available to you.

Discover the finance options handpicked for you and choose the car you want based on your affordability.

Get my quote

Get your Quote

Fill out our form to get your free, no-obligation quote that has no impact on your credit score. Our finance partner will hand-pick the best deals available to you based on the information you provide.

Pick your Car

While you wait for the finance checks to be complete, it's time to pick the car you would like. If you already have one in mind, you can let the team know and they will help you source the vehicle and ensure you are eligible to finance it based on your affordability.

Sign and Drive

Once all checks have been completed, you are ready to sign your new car finance agreement and hit the road in your new dream car.

How Does Car Finance Work?

Car finance works by applying for a loan from a lender to purchase a new or used vehicle which you repay in affordable, manageable chunks each month. Before applying for a loan, you should have an idea of how much you wish to borrow and the length of time you want to pay back the loan.

You can also put a deposit down to help reduce the loan and the amount required to pay monthly. Alongside the amount you borrow, you should expect to be charged interest on top of that.

How Does Car Finance Work?

What Types of Car Finance are Available?

Car finance is the broad term used to describe the many varieties of loan available. The three most popular loan types are Personal Contract Purchase (PCP), Hire Purchase (HP), and Personal Loan.

Hire Purchase (HP)
HP loans are secured against the car, but once you have made the agreed number of payments, you will own the car outright. The monthly payments are typically higher than on a PCP deal because there is no optional final balloon payment left at the end.
Personal Contract Purchase (PCP)
PCP loans are also secured against the vehicle but you won't have the option to own it outright unless you pay the balloon payment. If you decide that you don't want to own the car, you can hand it back to the lender or use any positive equity you have in the vehicle to use as a deposit on something new. You will pay fixed monthly payments throughout the course of the agreement.
Personal Loan
Personal loans are when you borrow the full amount of money to pay for the vehicle and own it outright from the start. Then like PCP and HP, you will make fixed monthly payments to repay the loan borrowed. As you own the car, you can sell it at any time you like while making the repayments.
What Types of Car Finance are Available?

Which Type of Car Finance is Best for me?

The car finance type you choose will depend on the amount you wish to borrow, the length of time you want to repay the loan and whether you want to own the car.

PCP finance typically offers the more flexible option with the lowest monthly repayments but you may have to agree on annual mileage limits and be liable for any wear and tear on the car.

On an HP, you'll own the car outright at the end and as a result, you should expect your monthly repayments to be slightly higher. You'll also have less flexibility to change or sell your car.

With a personal loan, you will own the car from the start so it is yours to do whatever you want with it, though your monthly payments may be higher than on a PCP or HP.

Which Type of Car Finance is Best for me?

Can I Get Car Finance With Bad Credit?

Having bad or no credit can make obtaining car finance challenging, but Car Credible works with a panel of lenders, giving you more options when it comes to choosing the right deal for you. While some lenders don't offer finance to those with bad credit, others do, and we can help you discover lenders fit for you, even if you've been rejected before. Having a finance loan with bad credit is a great way to help boost your credit score, giving you more options in the future.

Can I Get Car Finance With Bad Credit?

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Finance FAQs

What are the Pros of Car Finance?

Get a better, more expensive car - You're not having to pay for it outright with cash.

The cost is spread out - You can buy that £20,000 car you've been eyeing for months over the course of several years rather than in one go.

Payments are fixed on a monthly basis - You can plan and budget in advance, knowing exactly what you can expect to pay.

Drive a car on a tight budget - If you know exactly what you can afford, you can make it work easily so you don't feel like you're out of pocket at any time.

Improve your credit score - Providing you are able to make the payments each month without any issues. This can in turn help you out when applying for further loans, including a mortgage.

No hassle selling it on - You simply hand it back to the finance company at the end of your agreement on a PCP or PCH. If you are on an HP you would have already made the decision that you wanted to own the car outright at the end of the deal.

Use your current car as a deposit or part-exchange - When you do wish to get a new car, you won't have to pay any of your own cash out of pocket.

What are the Main Differences Between PCP and HP Finance?

The main differences between PCP and HP finance are once you make all of the agreed monthly repayments on an HP deal, the car automatically belongs to you. Once you make all of the agreed monthly repayments on a PCP deal, you don't automatically own the car.

What Options Do I Have at the End of my PCP Finance Deal?

You can hand the car back to the lender and walk away.

You can pay the optional final balloon payment to own the car outright.

You can use any positive equity as a deposit get into a new car and finance deal.

You can refinance the balloon payment, keep the car and continue making smaller monthly repayments until you can afford to pay the balloon payment outright.

What is a Guarantor Loan?

Guarantor car loans are a type of car finance where you nominate someone with a good credit score - typically a close family member - to make your loan repayments for you should you be unable to, for whatever reason.

What is Part-Exchanging?

Part exchanging is the process of trading in your old car when buying a car, using any equity you have in your current vehicle to put towards the value of the new one you are purchasing.

What Deposit is Required on a Car Finance Deal?

The amount of deposit you're required to put down is dependent on the dealer but typically, the recommended amount is around 10%.