Car Finance UK
- No Deposit
- We help find you the perfect car
- PCP and HP from 8.9% APR
- Free car history and dealer quality check
Purchasing a car, whether new or used, is a significant investment
That’s why finding the right finance deal is vital. You shouldn’t just concentrate on car finance near me. While it may offer the convenience of being able to visit the finance companies office, you could be missing out on much better online deals.
At CarMoney, we understand why “car finance near me” is one of the biggest search terms in the industry. People like the reassurance of dealing with a local business, as well as the ability to have face to face meetings if need be. This is particularly true when significant sums of money – like the cost of a car – is involved.
Wherever you are based, CarMoney will work to find the right car finance options for you. That’s why we work with finance companies all across the country. Car finance near me doesn’t necessarily mean car finance that saves you money. And we will work hard to save all our customers on interest and monthly payments.
Representative Example: Borrow £7,000 with £1,000 deposit over 48 months with a representative APR of 17.9%, monthly payment would be £171.83, with a total cost of credit of £2,247.83 and a total amount payable of £8,247.83. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender.
Car Finance in Your City
Car Finance in London
Looking for car finance in London? We’ll help you find the very best deals on HP and PCP
Car Finance in Birmingham
We will find you the best car finance in Birmingham for whatever car you want
Car Finance in Sheffield
Our team of specialist ninjas can find car, motorbike and van finance in Sheffield
Car Finance in Bristol
At CarMoney, we want to continue that automotive legacy by helping you find car finance in Bristol
Car Finance in Glasgow
Whether you want an electric, hybrid or fuel car, we can help you find car finance in Glasgow
Car Finance in Leicester
At CarMoney, we will work hard to find car finance in Leicester that is right for you
Car Finance in Edinburgh
Our car finance ninjas work to slash interest rates on car finance in Edinburgh
About Car Finance
What car finance deal?
The first step to choosing the right car finance deal is to learn about the options that are available. The two main types of car finance are:
Hire Purchase: With hire purchase, you hire a vehicle from a finance company for an agreed time period. Once you have made the final monthly payment, will own the vehicle outright.
The lender can repossess the car if you miss payments.
Personal Contract Purchase: With PCP you only the depreciation of the value of the vehicle, rather than the full value. The monthly payments will be lower. However, at the end of the agreement, if you would like to own the vehicle, you’ll have to pay a lump sum. With PCP it is generally easier to change cars.
The lender can repossess the car if you miss payments.
How we find the best deals
At CarMoney, we’ll use your details to find the car finance companies that are most likely to accept your application.
This means you can compare lenders easily. You’ll want to consider:
Interest Rates: Interest rates can significantly impact the total cost of the loan. It’s essential to compare rates from different lenders to secure the most competitive option.
Deposit: While some lenders offer deposit free options, a deposit can reduce the total amount financed and lower monthly payments.
Loan Term: The loan term affects monthly payments. While longer terms result in lower monthly payments, they can also lead to higher overall interest costs.
Additional Costs: Consider other expenses associated with car ownership, such as insurance, maintenance, and fuel.
What to consider when looking for car finance
Car finance companies will also look at many different things when deciding if they will approve your application, such as:
Credit Score and History: One of the most critical factors in determining car loan eligibility is the applicant’s credit score. A higher credit score indicates a lower risk for the lender, making it more likely that the loan application will be approved.
Income and Employment Stability: Lenders assess income to ensure you can afford the loan. A steady and reliable source of income provides assurance to the lender that the borrower can meet their monthly payments without undue financial strain. Even if you are on benefits, lenders will still consider you – as long as you can show you can make the repayments.
Deposit: The deposit is the initial amount paid by the borrower towards the purchase of the vehicle. A higher deposit can improve the chances of loan approval, as it reduces the overall loan amount and demonstrates the applicant’s commitment.
Debt-to-Income Ratio: Lenders evaluate the applicant’s debt-to-income ratio, which is the percentage of the applicant’s income that goes towards paying off existing debts. A lower ratio indicates better financial stability and an increased likelihood of loan approval.
Loan Amount and Term: The amount of the loan requested and the proposed term are crucial factors. Lenders consider the loan amount in relation to the applicant’s income and financial capacity. Additionally, longer terms may result in higher interest rates, impacting eligibility.
Guarantor: Depending on the lender’s policies, having a guarantor with a strong credit history can improve the chances of loan approval, especially for applicants with lower credit scores. The guarantor agrees to make the loan payments if you are unable to.
Employment History: A stable employment history demonstrates financial stability and the ability to meet financial commitments. Lenders may consider factors such as the length of employment, type of employment, and any recent job changes.
Outstanding Loans: Existing loans and credit card balances can affect eligibility. Lenders assess the applicant’s total debt burden and how it relates to their income.
Insurance: Some lenders may require the applicant to have comprehensive insurance coverage for the vehicle, providing additional security for the loan.
Frequently Asked Questions
How does car finance work?
The mechanism of car finance involves making monthly payments over a predetermined duration. The choice of finance option will impact the payment amount. It is essential to possess a favourable credit score for approval and carefully review the loan agreement before signing it.
How does HP car finance work?
HP car finance is a loan structure where you repay the borrowed amount through monthly instalments. You become the car’s owner by the end of the agreed term. However, an arrangement fee might be applicable, and the interest rate can be relatively high.
How does PCP work?
PCP car finance entails a loan structure involving monthly payments. Upon reaching the term’s end, you can purchase the car, return it, or trade it in. It’s worth noting that additional costs like an arrangement fee and potential charges for excess wear and tear may apply. When considering PCP car finance, it is essential to compare various lenders and terms to secure the most suitable arrangement. Moreover, assessing your financial capability to afford the monthly payments is crucial before committing to the contract.
How to be eligible for car finance
To meet the eligibility criteria for car finance, you must be 18 years or older, possess a favourable credit score, have a stable income, provide a deposit, and demonstrate the ability to afford monthly payments. Exploring multiple options and comparing different lenders is advisable to secure the most suitable car finance arrangement.
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Our customers love our CarMoney Ninjas
CarMoney Ninja Sean
“Great service, Sean Davidson was great and was always trying to help and give me the easiest experience possible. Thank you very much Sean.”
CarMoney Ninja Alan
“Alan, who I spoke with on the phone, was amazing! He sorted everything out for me, it was so easy and was able to get my car the very next day. Fantastic!”
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“Sophie who sorted my finance out for car was amazingly nothing was too much trouble for her always kept me up to date. Five stars Sophie. Thanks for everything”
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