• Low rate car finance

    Low rate car finance

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    No deposit options

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    Decision in minutes

Frequently Asked Questions.

Car finance doesn’t have to be confusing! But if you’ve never had a car on finance before you may have many questions about how it works and how it’ll affect your finances. Below is a list of Frequently Asked Questions we’ve had from REAL car finance customers!

If you need to know anything else, pop us a message on our Facebook page and we’ll get back to you!

commonly asked questions

#1. What is car finance? 

Car finance is the process of borrowing money to buy a car or having a lender buy a car on your behalf. If you’re approved for finance, you then make monthly payments until the end of an agreed term. Instead of having to pay one lump sum of cash, you’ll take out finance with a lender and pay for it over a number of years. Some lenders require you to put down a deposit for finance but when you apply with us, all our finance deals come with no deposit to pay. At the end of the agreement, your options are varied depending on which form of finance you choose. You could have options to keep the car, hand it back to the dealer or pay a balloon payment (PCP) and keep the car.

#2. How does car finance work? 

UK Car Finance is one of the best car finance brokers in the UK. As a broker, we won’t lend you any money. Instead, we will help to find you the best finance package from the UK’s most trusted lenders. We act as the middleman and our services are free to use. If you take up finance with one of our lenders, we’ll charge them a commission for the introduction. Broker car finance means we help you compare multiple deals at once and help you select the one with the lowest APR rate. We have lenders on our panel who can offer Hire Purchase finance, PCP deals, refinancing and even part exchanges. 

Find out more about how car finance works

#3. Which type of car finance is best? 

There are multiple car finance agreements to choose from but the most common tend to be hire purchase, personal contract purchase and personal loans. We have lenders on our panel who can offer all three of these agreements, but we primarily deal in Hire Purchase car finance. HP is an easy and straightforward way to finance a car which splits the value of your used car and interest into equal payments over the term. The finance lender buys the car on your behalf, and you make monthly payments back to the lender. At the end of the deal, there’s just a small option to purchase a fee to pay and you’ll own the car.

Find out more about both Hire Purchase and PCP below.

Hire Purchase.

✅ Secured loan with no deposit.
✅ Flexible repayment terms.
✅ Own the car at the end of the deal.
✅ Fixed interest rates.
✅ No mileage restrictions.
✅ No large balloon payment at the end.

> Explore Hire Purchase. <

Personal Contract Purchase.

✅ Secured loan with low monthly payments.
✅ You don’t need to own the car.
✅ More options at the end of the deal.
✅ Low motivation.
✅ Trade in your old car for a newer model.
✅ Fixed monthly payments.

> Find out more about PCP. <

#4. Do I need to have a deposit? 

To put it simply, no. You don’t need a deposit for car finance.

All of the lenders on our panel offer car finance with no deposit to pay. However, if you do have a deposit to put down, you can do so. When you put money down at the start of your finance deal, you are reducing the overall loan amount, and it could even lower the interest rate you are offered or make your monthly payments smaller.

7 questions to ask yourself before car finance

#5. How much will my car finance repayments be? 

Car finance repayments will be different for each and every person who gets approved. Your car finance monthly payments will be calculated by your budget, credit score and loan term. It can also vary depending on which car finance agreement you choose. For example, PCP finance can offer lower monthly payments because there is a large balloon payment at the end of the deal if you wish to keep the car.

If you want to get an idea of how much you could borrow, use our FREE car finance calculator to do exactly that.

#6. Will I be approved for car finance? 

Unfortunately, the lenders on our panel can’t offer finance to everyone who applies. It would be irresponsible for lenders to lend money to someone who couldn’t afford to pay it back so they will assess the creditworthiness of an applicant before giving them a decision. When you apply for finance with us, we’ll run a soft credit check on your credit report which won’t harm your credit score. Using your credit score and your personal information, our lending panel will then decide if they wish to offer you finance or not. Usually, finance deals are secured by those with good credit scores, a full-time, permanence job, a UK driving license and a good level of affordability.

#7. Does car finance affect credit score? 

When you apply for car finance with us, we only provide a soft search credit check on your credit file. This won’t harm your credit score, nor will it be recorded on your credit report. Some of our lenders may want to run a hard credit check on you but we will always let you know before doing so. When you first take out finance, the amount of credit you owe increases, and your credit score may take a slight know but it should return to normal once you start making payments. If you miss any payments along the way, your credit score can decrease. It’s essential you are able to meet every finance payment until the very end of the deal.

man monitoring credit score

#8. Which cars can I get on finance? 

One of the biggest benefits of using a car finance broker like us is the ability to get the car you want! We only deal in used cars but once you’ve found the perfect finance deal from our panel, you can get a car within your budget. You can use any car dealership in the UK to get a car that suits your needs. All we ask is for you to choose a dealership that is verified by the Financial Conduct Authority. This helps to protect both us and you and ensures you’re getting a good deal. Your car finance expert will also do checks on the dealership to make sure everyone is happy with the situation. 


“Got myself in a pickle looking for a new car as my credit score is terrible. UK car finance got me a car for a great deal that was perfect and had everything I asked for. Any trouble with the car and they sorted it out straight away. I can’t fault them. The team are so hard working and friendly. Thank you to Sean and all the UK car finance team.” – Marianna Robson (Via Google Reviews)

#9. What happens if I can’t pay? 

Car finance deals like Hire Purchase and Personal Contract Purchase are secured loans. This means the ownership of the car lies with the finance lender. If you fail to repay your car finance or fall behind on payments, the lender has the right to repossess the car. If something changes in your situation and you can no longer afford the repayments, please do not simply miss the payment and bury your head in the sand. Get in touch with the lender who provides your car finance and see what your options are. If you’re not sure who your lender is and you are a UK Car Finance customer, get in touch and we’ll be able to find out for you. 

#10. Can I cancel a car finance agreement early? 

In theory, you can end your car finance agreement at any time by settling the remaining balance. Ending your car finance early can incur fees and charges though and you may end up paying more than what is due. Usually, ending a car finance agreement early works best once you have paid around 50% of the total loan value and you could even return the car to the dealer with no additional payments to pay. Find out more about ending a car finance agreement earlier than expected

Get a free finance quote.

See how we can help you today! Secure a used car finance deal with the freedom to get the car you want. No obligation, no harm to your credit score and no waiting around for a decision.

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