What is car finance?

Car finance is a way of funding your car and it involves regular payments as opposed to paying in one chunk. There are different types of car finance and they all have their own merits. Here's a little more detail...

Car finance is an increasingly popular way to fund a car. Once upon a time, the only way to afford a new car was to save and save until you had a lump sum to pay but nowadays, you can split the payments over a series of months or years which is often more convenient and more affordable. Personal contract purchase is one of the most-chosen options. Often abbreviated to 'PCP' it is the process of paying for a car in instalments. Typically you will pay a deposit at the start of the agreement and then a regular payment each month for the length of the term. At the end, you will usually have a few options such as handing the car back to the finance company, paying a balloon payment to own the car or using it as a deposit on your next car.

Hire purchase is another popular type of finance, which you will often see referred to as ""HP'. Hire purchase is similar to PCP but you own the car at the end of the agreement and the monthly payments are often more.

Bad credit car finance is a particular type of finance often available to those with poor credit. There are a number of reasons why this could be the case, such as lack of credit history, problems with finance or repayments in the past or CCJs.

The world of finance is large and we are here to make it as simple and easy as possible. We are experts in the finance field and will work hard to find a deal that works for you. If you would like to find out more, please get in touch.

Finance Calculator

Applying for finance is quick and easy, if you want to see what the figures could look like, you can use our finance calculator. Simply pop in the amount you wish to borrow and how long you would like to spread the payments over, then you can get a picture of what your finance deal could look like.

Please enter your vehicle price:

Car finance is a great way to afford the car you want without having to pay a lump sum upfront. You spread the cost of the car over a series of months or years and repay it through regular instalments. There are different types of finance available and your application will be looked at on an individual basis.

How it works

If you are considering car finance you may be wondering how it works. It's quick and easy, here's how to go about applying for car finance.


The first step is to apply for finance. You may have a car in mind already at this point but whether you do or not, this part of the process is still the same. You will enter your details and we will build a profile on what you will be like as a customer. We may ask about your earnings and your outgoings and look at your credit score too, so we can see what your financial present and past look like.


There may be a range of different options available to you and when you have chosen one, we will complete the process of your acceptance. This may be in the form of a hard search once the soft search has been completed.


The paperwork will detail the amount you wish to borrow, how much it is going to cost per month, how long the agreement is over and, of course, the APR. The APR is the annual percentage rate and determines the interest you will be paying on the borrowed amount of money.

Drive away

We are going to guess you will have fallen in love with a car by this point, if not don't worry we can help with that! Once it is all signed and sealed, you get to drive your car away and enjoy it.

Car finance is a great way of affording a car without paying for the whole thing upfront. There are many benefits and it can be a brilliant way of driving away in a nicer and newer car. However, car finance is not for everyone and there is no such thing as guaranteed car finance. If you would like to explore car finance with us then please get in touch with a member of the team.

What documents do I need?

If you are applying for car finance, there are a few things you need to know. One of them is what documents you will need in order to apply…

When applying for car finance, the lender will build a picture of you as a person and as a customer, they will want to know about your financial history and what you currently earn and spend, so they can see if you will be reliable with your repayments. Another thing they will want to know is that you are who you say you are, they will work this out through some documentation.

Driving license

You will need to show and share your driving license or some other proof of your identity. This is for the simple reason that you are the person who is applying for finance as it is not permitted for you to apply for car finance in someone else's name.

Proof of income

Usually this will be in the form of three months of payslips or your bank statements. This is so that the amount you say you earn can be seen in reality as it is important that you have the funds to repay the finance each and every month.

Proof of address

Being able to show your address is key as the lender will want to know where you reside and how long for, to see if you are a risk when it comes to lending. If you haven't long been in the UK or you have a new place of residence, you may need to provide proof and the address of where you lived previously.

When applying for car finance there are lots of things you should consider and we would always recommend having a chat with one of our finance experts. You can get in touch online or give us a call to find out more.


Got a question about car finance? Take a look at our answers below and if you have one that you cannot spot, please get in touch with a member of the team.

Can I apply for finance if I am self employed?

Yes, you can! As long as you can provide proof of your income in the same way you would if you were employed, that shouldn't be a problem. Every application is different and we would encourage you to et in touch.

Can I apply for finance if I have bad credit?

Yes, of course.

Having good credit is not the be all and end all, we also work with bad credit car finance specialists.

Can I apply for finance multiple times?

You can do, but be careful how many times you apply. A soft search will not show on your credit file but if it is a hard search, it will show up and can harm your credit rating. Try not to apply multiple times over a short space of time and limit your finance applications to a handful a year at most.

Can I apply for finance in someone else's name?

No. Finance agreements have to be in your own name.

What is guaranteed car finance?

There is no such thing as guaranteed car finance as there are so many variables involved. No one can guarantee acceptance in car finance.

How easy is it to apply?

So easy! Apply online or get in touch and see how we can help. You apply, get an answer and we sort the paperwork, then you can drive away.

How much can I borrow?

It depends on the individual. If you have a car in mind, fill in the finance form to see what could be possible.

Do I need a deposit?

Not always. It is possible to take out car finance without a deposit although having one can lower the monthly payments.

What will the APR be?

Every lender and agreement is different. It is best to do a soft search and see what the numbers could look like. If you have questions please get in touch.