is a broker, not a lender.

Rates from 8.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £7,500 over 48 months with a representative APR of 18.9%, an annual interest rate of 18.9% (Fixed) and a deposit of £0.00, the amount payable would be £223.86 per calendar month, with a total cost of credit of £3,245.06 and a total amount payable of £10,745.06.

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Bad Credit Car Finance

When buying a car (used or new), researching the car is only part of the car-buying journey. It’s just as important to consider the best way to pay. With a bad credit score, two main financing options exist.

Personal Contract Agreement (PCP)

A Personal Contract Agreement can provide lower monthly payments because a chunk of the depreciation value is deferred until the final payment. This is known as a balloon payment. How much the final payment will be is based on the estimated annual mileage you use. From that figure, lenders can calculate a “Guaranteed Future Value”. At the end of the finance agreement, you can keep the vehicle, return it, or renew it. This option is generally best suited to those traveling locally. Not suitable for high mileage drivers. 


Hire Purchase Finance Agreements 

HP agreements differ from PCP because after you make the final payment, you become the owner. During the HP contract, you’ll be the registered keeper. Think of HP as being similar to a secured loan. From the moment you sign the HP agreement, you become the registered keeper but the vehicle is the security against the loan. Once you make the final payment, you become the owner. 


Bad Credit Car Finance Lenders: Direct Vs Brokers & Lending Panels 

It is possible to skip the potential commissions car dealerships get as an introduction fee to a lending firm by getting finance arranged with a lender directly. Similar to bad credit direct lenders, there are specialist firms dealing exclusively in bad credit car finance. 


Check the eligibility criteria before applying. For many car finance firms, the eligibility criteria is to be aged over 25, have lived in the same address for 3+ years, earn a net income of at least £1,500 monthly, hold a full driving license, and not have an active bankruptcy, IVA, or a Debt Relief Order (DRO).


An advantage of bad credit car finance direct lenders is you can get finance agreed before you go to a showroom. The advantage is that you can tell the dealer what you can buy. A used car that’s no older than 7 years old with a max 70,000 miles on the clock. The terms should be outlined on your conditional loan agreement. 

Bad Credit Finance Considerations for Affordability

As with all responsible lenders, loans are subject to affordability assessments. As part of your research into a car, van, or a motorbike that suits your needs, don’t neglect the additional costs that’ll eat into your affordability: fuel, MOT insurance, road tax, vehicle servicing and the maintenance costs. 


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At, we could help you get the loan you need faster and with less effort. We quickly analyse our panel of lenders for you and present you with the best match, making the whole loan process of securing a loan easier and giving you significantly better odds of being approved.

Quick lender decisions

Our group of lenders use cutting-edge technology to process applications quickly, which can lead to super fast approvals and even same-day funding from some lenders. But remember, approval speed and funding times might be different depending on the lender you’re matched with, so we can’t guarantee you’ll be funded on the same day.

Soft search technology

We work with a wide range of lenders and brokers, and we compare them without performing a hard credit check on your file. Our panel carries out a soft search, which only you can see on your credit report. We use the information you provide to pinpoint the lowest cost lender in our network who’s likely to approve your application.

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When you request a quote from, we use your information to connect you with a credit provider likely to accommodate your credit needs. Your data is protected using encryption on our SSL-secured website, and we neither store nor share your information with third parties, except for the lender or broker you are matched with.

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Skip the phone calls and paperwork – simply fill out our form with the required details to match you with the ideal provider. Once submitted, you’ll instantly see your personalised loan and credit options tailored to your needs.



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Unlike some of the larger comparison websites that are owned by product providers, who often push their own products first, is entirely independent and unbiased. Our dedication to impartiality ensures that we focus solely on providing you with the most suitable options for your unique financial needs, without any hidden agendas.



Frequently asked questions (FAQ)

How do I get car finance with bad credit?

Regardless of your credit score, there are a range of car finance options available to suit your needs. In fact, there are many lenders who specialise in supporting low credit score holders in search of car financing.

These lenders may offer lower amounts at higher interest rates, as well as feature additional rules like an initial deposit that enable them to make what is – on paper, at least – a higher-risk lending.

Securing car finance with bad credit is simple with us – just use the quote tool from our partners at CreditPlus to discover the car financing option from their panel that best-suits your unique financial situation! Note: CreditPlus is a broker and not a lender.

Pros and Cons of Car Finance with Bad Credit

The first and foremost pro is a big one – you are able to obtain the vehicle you need to meet your family’s needs, reach your place of work and enjoy basic travel capabilities!

In addition, every timely payment made may contribute positively to your credit score. By the time your vehicle’s paid off, you may have unlocked access to credit at lower rates which are available to those with stronger credit scores.

In terms of cons, the main risk is affecting your credit score negatively by not meeting the payment requirements of your agreement. 

You may also need to agree to higher interest rates, receiving a lower amount, making an initial deposit and other, stricter terms than for those applying for car finance with a stronger credit score.

Types of Bad Credit Car Finance

There are a range of options for those with bad credit in search of car finance, including:

Personal contract purchases: Pay an initial deposit then make monthly repayments. At the end of your contract, return the car or purchase it outright following a final payment.

Hire purchase: Pay an initial deposit then make a specified number of monthly payments, after which you will become the vehicle’s outright owner.

Personal loan: Purchase the car outright using the cash from your loan, then make monthly payments to the loan provider until your debt is cleared. 

Leasing: Pay a monthly fee to use the car without ever owning it. The amount due monthly will depend on factors including car type and value, personal or business use, length of lease and estimated mileage.

Can I get car finance with no credit history?

Of course, it is possible to get car finance with no credit history! 

Similar to car financing for those with bad credit history, securing car financing with no credit history will likely feature stricter terms, higher interest rates and greater initial deposits. They may also need to engage a co-signer to feature in their approval process. 

Many lenders recognise the needs of those with no credit history to secure car financing, and will work with individuals to secure the agreement terms they need.

How long does it take to get a car with bad credit?

There is no set timeline for obtaining car finance if you have a low credit score. The time taken will depend on variables regarding a specific lender’s terms as well as your unique financial situation. It could be anywhere from the same day to a week or longer!

To ensure your car financing application process goes smoothly and as quickly as possible, take a look at the lender’s requirements and gather all documentation needed ahead of making your application.

Does car finance affect my credit score?

Yes, car financing will have a significant impact on your credit score. 

If you make payments on time and adhere to every term in your lending agreement, then your car financing process will likely affect your credit score positively.

However, if you miss payments, default on your loan or encounter any negative financial events during your car financing payments, it is likely that your credit score will be affected negatively.

To ensure that your car financing leaves your credit score in a better state than before you started, take some time to chat with a financial advisor to ensure that car financing is the right choice for you.

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Page last updated: May 29, 2024 | Author: