Car finance

It usually takes between one to two days to get car finance approval in the UK.

If you apply for car finance with Car Finance 247, you could get a decision in principle within the same working day.

No, you don’t need to know what car you want to buy before applying with Car Finance 247.

If you’re not sure what you want, and need help finding the right car for you, your account manager at Car Finance 247 could help. Have a chat with them and let them know what sort of car you’re looking for.

The cheapest way to finance a car for you will depend on the type of loan, the term length and the interest rate.

For example, one deal might offer a cheaper monthly repayment, but the loan term is two years longer. This means you’d likely pay more overall, because you’re paying more in interest.

PCP car finance could provide a cheap finance option. This is because you’re only borrowing the difference between the current price and the lender’s predicted future valuation – the Guaranteed Minimum Future Value (GMFV).

However, if you want to keep the car at the end of your PCP agreement, you’ll need to make a large balloon payment. Bear in mind that this will be much higher than your regular monthly payments.

No, there are no fees or costs when you compare car finance and car loan options through Car Finance 247. Instead, they get a fee or commission from the lender for arranging your car finance with them.

In some cases, car dealers or lenders may charge an administration fee. If this is the case, Car Finance 247 will show this to you.

If you’re struggling to meet your monthly repayments, talk to your lender as they may be able to help restructure your payment plan to make it more affordable.

If you continue to miss HP or PCP payments, the finance company could take the car back and use the proceeds to repay your debt.

With a personal loan, the lender will expect you to repay whatever you still owe. But you wouldn’t be under any obligation to sell your car.

Whichever car finance option you have, late or missed payments will hurt your credit score and could affect your ability to get finance in the future.

In some cases, you can end your contract early and hand the car back to the finance provider without having to pay a penalty. If you bought your car on PCP or HP, you can return it if you’ve already paid off 50% of the loan, including any interest and fees. This is known as voluntary termination.

If you lease your car, you could return it, but you’ll probably have to pay back anything you still owe on the contract.

A typical car deposit is usually 10% of the loan amount.

Generally speaking, the bigger the deposit you can afford, the cheaper your car finance will be. This is because you’re borrowing less and could be paying less interest on a shorter loan term.

However, a good deposit is simply one you can afford comfortably. Make sure you don’t leave yourself short, because you’ll have other things to pay for with a new car. For example, car insurance, tax and more.

APR stands for annual percentage rate, and it tells you the cost of borrowing money for a year.

As well as the interest, APR also includes any additional fees. This can be useful to know when comparing different loan and finance deals.

Lenders will advertise a representative APR. This is what must be offered to at least 51% of customers. The APR you are offered will depend on several factors, including your credit score.

Yes, as long as you’re comfortable with the repayments, buying a car on finance can be a great way to pay for a car that you otherwise wouldn’t be able to afford. Buying a car outright can be expensive, so car finance deals help make buying a car more accessible.

However, buying a car on finance can be more expensive than buying outright. Unless you get a 0% finance deal, you’ll likely be paying interest over several years and there’s a cost to that.

Make sure you’re fully aware of the costs involved and only commit if you’re confident you can pay the car off.

Yes, you can usually repay a car loan early.

To do this, you’ll need to pay the contract’s settlement figure. This is an agreed amount that will end your finance agreement with the lender.

The settlement figure will include the remaining balance outstanding but will exclude the interest you’d have paid on it. This could save you money overall, but look out for additional fees included in the settlement figure.

You should be able to find your settlement figure in your contract. If you’re not sure, it’s best to contact the lender and request a settlement figure from them.

When you apply for car finance with a lender, they’ll run a hard credit check on you. This is recorded on your credit report and may impact your credit score.

When you’re first applying with Car Finance 247, they’ll run a soft credit check on you. This shouldn’t affect your credit score. A soft credit check is used to match you with lenders from their panel that are likely to approve you for car finance.

Once you’ve submitted a formal application to a lender, the hard credit check is carried out.

A soft search is a type of credit check that doesn’t affect your credit score. When comparing quotes for money products or insurance, providers will do a soft search, which is used to check your details are accurate.

A soft search will only appear on your credit file to you and won’t impact your score. Car Finance 247 will never carry out a hard credit search without the customer’s prior consent. Simply applying to get a finance quote does not impact your credit score.

Whether or not you need a deposit depends on your lender.

Most lenders available through Car Finance 247 don’t require a deposit. However, if you can afford it, paying a deposit or part-exchanging will reduce the cost of your loan and your monthly repayments.

To apply for a car loan with Car Finance 247, you must be over 18 years old and have a minimum of three years’ address history in the UK.

When comparing car loans with Car Finance 247, you can get a decision in minutes.

Simply fill out the online application and they’ll quickly assess your eligibility. Once you’ve been approved in principle, one of their dedicated account managers will call you to check through your details and discuss the next steps.

Yes, getting a used car on finance is very similar to buying a new car on finance.

Car Finance 247 can help you search and compare different finance options for buying a used car.

Yes, Car Finance 247 can accept part-exchanges.

You can use a part-exchange as a deposit towards a new car. Depending on how much your part-exchange is worth, it could reduce your total loan amount. This could mean you’re paying less each month.

Yes, you can buy a car from any UK dealership.

To help you get started, our partners at Car Finance 247 have more than 100,000 cars available to view. Once you’ve found the car you want, just let your account manager know and they’ll make the arrangements.

No, it’s illegal to knowingly sell a car with outstanding finance still on it.

You can sell a car you’ve bought with a personal loan because you will own the car straight away. But if you have outstanding HP or PCP finance to pay off, the car isn’t yours to sell. You can only sell the car once your finance contract comes to an end, or if you settle the outstanding finance first.

It might be possible to part-exchange your financed car with another one, but this could cost you more than the car is worth, especially if you’re in the early stages of your finance agreement.