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Complete Car
Finance Guide

Our complete car finance guide covers everything you need to know about car finance

What Is Car Finance

✅ Advantages of Car Finance

  • Car finance allows you to spread the cost of your car over a specified period, making it more affordable and manageable. This enables you to drive the vehicle of your dreams without straining your finances.
  • Car finance often requires a lower upfront payment than purchasing a car outright. This frees up your capital for other essential expenses or investments.
  • Car finance provides flexibility in terms of repayment options. You can choose a loan term that suits your financial situation: a shorter term with higher monthly payments or a longer term with lower monthly instalments.
  • Car finance allows you to upgrade to a newer model more frequently. With certain financing options, you can trade in your vehicle and begin a new finance agreement, granting you access to the latest car technologies and safety features.

❌ Disadvantages of Car Finance

  • You will be paying interest on the loan, which adds to the overall cost of the vehicle. It’s essential to compare interest rates and terms different lenders offer to ensure you secure the most favourable deal.
  • You are committed to making regular payments for the agreed-upon term. If your financial circumstances change or you encounter unforeseen difficulties, it may become challenging to meet your repayment obligations.
  • With certain car finance options, such as Personal Contract Purchase (PCP), there may be mileage limitations and wear-and-tear restrictions. Exceeding the agreed mileage or failing to maintain the car adequately may result in additional charges at the end of the agreement.

Get in touch to get a personalised car finance quote →

Exploring Different Car Finance Options


  • Straight-forward finance option and easy to apply
  • Own the car once the finance is paid off
  • fixed interest rate and monthly payments
  • No annual mileage restrictions

  • Returning the vehicle
  • Purchasing it by paying the deferred amount (balloon payment)
  • Trading it in for a new car


  • Reduce your monthly cost
  • Change your car every couple of years
  • Fixed interest rate and monthly payments
  • Protection against Depreciation

  • Own the car once the finance is paid off
  • fixed interest rate and monthly payments
  • Potential savings if the interest rate decreases over the agreement term

  • Own the car once the finance is paid off
  • Lower monthly payments
  • Fixed interest rate and monthly payments
  • No annual mileage restrictions

  • Low monthly payments
  • Get a new car every few years
  • No maintenance and repair costs
  • No need to worry about depreciation

  • Get a lower interest rate
  • Reduce your monthly payments
  • Release equity


How To Refinance a Car

Frequently Asked Questions about Car Finance

What credit score is needed for car finance?

Lenders typically consider credit scores ranging from fair to excellent for car finance approval. While a higher credit score increases your chances of securing favourable terms, options are also available for individuals with lower credit scores.

How long does the car finance process take?

The duration of the car finance process depends on various factors, such as the lender’s efficiency and the completeness of your application. Generally, it can take a few hours to a few days for approval and finalizing the paperwork.

Can I finance a used car?

Yes, car finance is available for both new and used vehicles. However, interest rates and terms may vary based on the used car’s age, mileage, and condition.

What happens if I can’t keep up with car finance payments?

If you’re unable to make your car finance payments, it’s crucial to contact your lender immediately. They may provide options like payment rescheduling or refinancing to help you manage the situation. Failure to communicate and rectify the issue may result in repossession of the vehicle.

Can I pay off my car finance early?

Yes, it is possible to pay off your car finance early. However, you should review your finance agreement and consult with your lender to understand any potential early repayment fees or charges.

How does car finance affect insurance?

Car finance does not directly impact your insurance; however, informing your insurance provider that the vehicle is financed is essential. This ensures appropriate coverage and compliance with the lender’s requirements.

What should I consider when choosing a car finance deal?

When selecting a car finance deal, consider the interest rates, loan terms, monthly payments, additional fees, and any limitations or restrictions outlined in the agreement. Comparing offers from different lenders will help you secure the most favourable terms.

The Process for Buying a Car on Finance

Why Use a Finance Broker

1. Save You Money

A car finance broker has access to a wide range of lenders and financial products, which means they can find the best deal for you. This fact gives you a greater chance of securing a loan with more favourable terms and interest rates.

2. Save You Time

In addition to saving you money, you can save the time you would have spent researching your options and the different rates. A broker will do the research and shopping around for you, which saves you time and effort.

3. Minimise the Impact on Your Credit File

Working with a finance broker will allow you to apply to several lenders with just one application, so there will be minimal impact on your credit score.

Get in touch to get a personalised car finance quote →

Understanding Total Cost of Ownership (TCO)

  1. Depreciation: Vehicles generally depreciate over time, meaning their value decreases. Some cars depreciate faster than others, impacting the vehicle’s resale value.
  2. Insurance: Car insurance is a necessary expense for car owners. Insurance premiums can vary based on the car’s make and model, the driver’s age and driving history, and the location.
  3. Maintenance and Repairs: Car ownership includes regular maintenance and occasional repairs. These costs can vary depending on the vehicle’s age, mileage, and make.
  4. Fuel: Fuel costs are a significant ongoing expense, especially for vehicles with lower fuel efficiency.
  5. Taxes and Registration Fees: Car owners are required to pay taxes and registration fees, which can vary depending on the location and value of the vehicle.

Tips for Negotiating Car Finance Terms

  1. Research Interest Rates: Research current interest rates for car loans in your region before entering negotiations. With this knowledge, you’ll be better positioned to negotiate competitive rates with lenders or dealerships.
  2. Check for Incentives: Some dealerships offer special financing incentives, such as low or zero-percent interest rates for specific models or promotions. Ask about any available incentives that could benefit your financial situation.
  3. Be Prepared to Walk Away: Feel free to walk away if you feel uncomfortable with the terms offered or sense that the deal is not in your best interest. Many financing options are available, and it’s essential to find one that aligns with your needs.
  4. Negotiate the Price Separately: When negotiating, focus on the purchase price of the car first before discussing financing terms. Separating these discussions allows you to evaluate the overall cost better.
  5. Be Mindful of Add-Ons: Dealerships may offer additional services or products, such as extended warranties or protection packages. Evaluate these add-ons carefully and consider their actual value before accepting them.

Assessing Your Financial Readiness

  1. Check Your Credit Score: Request a copy of your credit report from the credit bureaus and review it for accuracy. A higher credit score can lead to better loan terms, including lower interest rates.
  2. Calculate Your Debt-to-Income Ratio (DTI): DTI measures your monthly debt payments compared to your monthly income. Lenders use this ratio to evaluate your ability to manage additional debt.
  3. Set a Realistic Budget: Analyze your monthly income and expenses to determine how much you can comfortably allocate to car payments. Be sure to leave room for other essential expenses and unexpected emergencies.
  4. Consider Down Payments: A larger down payment can reduce the loan amount and lower monthly payments.
  5. Shop for Pre-Approved Loans: Get pre-approved for a car loan before visiting dealerships. This will help you set a budget and avoid being influenced by potentially higher financing rates at the dealership.

Car Finance Regulations and Consumer Rights

  1. Consumer Protection Laws: These laws vary by region and may include regulations on interest rate caps, disclosure requirements, and unfair lending practices.
  2. Cooling-off Periods: Some regions offer a cooling-off period during which buyers can cancel a car finance agreement without penalty.
  3. Early Repayment Rights: Know your rights regarding early loan repayment and associated fees.
  4. Credit Reporting: Understand how car finance affects your credit score and how timely payments can positively impact your credit history.



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We have a network of over 40 finance lenders and, as such, have access to funds and finance options designed to purchase luxury, sports and classic cars. Whilst we prefer you buy through a dealer, we can often support you through a private purchase where required.

Our experienced, professional staff can swiftly arrange the most suitable finance option to meet your needs.

We deal with various financial institutions to give our customers more competitive options. For your protection, we are authorised and regulated by the Financial Conduct Authority to sell consumer credit.

If you want to finance an asset for your business, try our asset finance calculator.

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