Car finance
Buying a car is a significant investment that can put a strain on your finances. Car finance can be an excellent option for those who want to buy a vehicle but don't have the cash up front. With different types of car finance available, it can be a challenge to understand which option best suits your needs.
xx.x% APR Representative
Calculate monthly car finance payments
Calculate monthly car finance payments
Calculate monthly car finance payments
The world of car finance can be a confusing one – but we’re here to help simplify things. Use our car finance calculator to help you decide whether car finance could be a good option for you, without affecting your credit rating. The calculator will give you a good idea of what your monthly payments could look like based on how much you’re looking to borrow.
Don’t worry, you’re not committing to anything; this tool is simply a useful guide to help you figure out a budget that suits you best before you complete a full application for car finance.
The world of car finance can be a confusing one – but we’re here to help simplify things. Use our car finance calculator to help you decide whether car finance could be a good option for you, without affecting your credit rating. The calculator will give you a good idea of what your monthly payments could look like based on how much you’re looking to borrow.
Don’t worry, you’re not committing to anything; this tool is simply a useful guide to help you figure out a budget that suits you best before you complete a full application for car finance.
The world of car finance can be a confusing one – but we’re here to help simplify things. Use our car finance calculator to help you decide whether car finance could be a good option for you, without affecting your credit rating. The calculator will give you a good idea of what your monthly payments could look like based on how much you’re looking to borrow.
Don’t worry, you’re not committing to anything; this tool is simply a useful guide to help you figure out a budget that suits you best before you complete a full application for car finance.
What is car finance?
Car finance is simply the process of taking out a loan to buy a car. It's a way to spread out the cost of a vehicle over a period of time rather than having to pay for it all up front. This can be really helpful for people who can't afford to pay the full price of a car at once.
How does car finance work?
Car finance spreads out the cost of a car purchase over a set period of time. When you opt for car finance, you borrow money from a lender to pay for the vehicle. You then repay the car finance in instalments over an agreed-upon timeframe, which is typically a few years.
The amount you can borrow and the interest rate you'll pay will depend on various factors, such as your credit score, income, and the price of the car. If you have a good credit score and a stable income, you're more likely to be approved for a loan with favourable terms, such as a lower APR.
Types of finance
There are different types of car finance, like car loans, hire purchase and personal contract purchase (PCP), so you'll want to do some research to figure out which one is best for you.
Car finance is simply the process of taking out a loan to buy a car. It's a way to spread out the cost of a vehicle over a period of time rather than having to pay for it all up front. This can be really helpful for people who can't afford to pay the full price of a car at once.
How does car finance work?
Car finance spreads out the cost of a car purchase over a set period of time. When you opt for car finance, you borrow money from a lender to pay for the vehicle. You then repay the car finance in instalments over an agreed-upon timeframe, which is typically a few years.
The amount you can borrow and the interest rate you'll pay will depend on various factors, such as your credit score, income, and the price of the car. If you have a good credit score and a stable income, you're more likely to be approved for a loan with favourable terms, such as a lower APR.
Types of finance
There are different types of car finance, like car loans, hire purchase and personal contract purchase (PCP), so you'll want to do some research to figure out which one is best for you.
Car finance is simply the process of taking out a loan to buy a car. It's a way to spread out the cost of a vehicle over a period of time rather than having to pay for it all up front. This can be really helpful for people who can't afford to pay the full price of a car at once.
How does car finance work?
Car finance spreads out the cost of a car purchase over a set period of time. When you opt for car finance, you borrow money from a lender to pay for the vehicle. You then repay the car finance in instalments over an agreed-upon timeframe, which is typically a few years.
The amount you can borrow and the interest rate you'll pay will depend on various factors, such as your credit score, income, and the price of the car. If you have a good credit score and a stable income, you're more likely to be approved for a loan with favourable terms, such as a lower APR.
Types of finance
There are different types of car finance, like car loans, hire purchase and personal contract purchase (PCP), so you'll want to do some research to figure out which one is best for you.
Car loans
A car loan is a type of finance arrangement that helps car buyers cover the cost of their purchase. The buyer borrows a lump sum of cash up front and then makes monthly payments over a set amount of time (which can vary depending on the agreement type).
A car loan is a type of finance arrangement that helps car buyers cover the cost of their purchase. The buyer borrows a lump sum of cash up front and then makes monthly payments over a set amount of time (which can vary depending on the agreement type).
Hire purchase
Hire purchase is a type of car finance where you make fixed monthly payments over a pre-arranged period of time until you’ve paid off the full cost of the car, plus any interest. During the hire purchase agreement you essentially hire the car from the lender until you’ve paid off the full amount owed. After all payments have been made, including the final ‘option to purchase’ fee, you will own the car outright.
Hire purchase is a type of car finance where you make fixed monthly payments over a pre-arranged period of time until you’ve paid off the full cost of the car, plus any interest. During the hire purchase agreement you essentially hire the car from the lender until you’ve paid off the full amount owed. After all payments have been made, including the final ‘option to purchase’ fee, you will own the car outright.
Personal contract purchase
Personal contract purchase (PCP) is a type of car finance that allows you to make lower monthly payments on a vehicle by deferring a significant portion of the cost to the end of the agreement. With PCP, you won’t own the car until you’ve made the final lump sum payment, known as the ’balloon’ payment.
Personal contract purchase (PCP) is a type of car finance that allows you to make lower monthly payments on a vehicle by deferring a significant portion of the cost to the end of the agreement. With PCP, you won’t own the car until you’ve made the final lump sum payment, known as the ’balloon’ payment.
Personal contract hire
Personal contract hire (PCH) is a type of car finance that allows you to lease a vehicle for a set timeframe, typically between two to four years. With PCH, you don't own the car, but you have the right to use it for the duration of the contract in exchange for monthly payments. At the end of the agreement, you simply return the car to the leasing company and have the option to start a new lease on a different vehicle.
How to finance a car with Oodle
01
Apply online
Find out if you're pre-approved in seconds
01
Apply online
Find out if you're pre-approved in seconds
01
Apply online
Find out if you're pre-approved in seconds
02
Get accepted
You’ll have the money in your account the next working day
02
Get accepted
You’ll have the money in your account the next working day
02
Get accepted
You’ll have the money in your account the next working day
03
Shop anywhere
Shop online or in a dealership
03
Shop anywhere
Shop online or in a dealership
03
Shop anywhere
Shop online or in a dealership
Am I eligible for car finance?
When you apply for car finance, you’ll be subject to credit checks and certain eligibility checks by your lender to help them decide whether they’re able to offer you a finance agreement.
You will need to provide:
Proof of age (all applicants must be aged 18 years or over to be considered for car finance)
Proof of address (typically you’ll have to show where you’ve lived for the past three years)
Proof of earnings (personal, and household if you have dependents such as children)
Employment status
A full or provisional, valid UK driving licence
A guarantor (if requested by your lender)
Although not everyone will get a finance deal with Oodle, there are other options out there; even if you have a lower credit score, it is worth checking to see what might be available.
FAQs about car finance
Can I get car finance if I have a bad credit score?
You don’t necessarily have to have a good credit score to be approved for car finance – but it helps! Some lenders are willing to help borrowers with a poor credit score, and a few even specialise in poor credit history finance.
So, if your credit score isn’t great, it doesn’t necessarily mean that you won’t be able to finance your car. It just means that you might have to shop around to find the right lender for you.
Be careful though: if you’re struggling to pay off your existing debts it’s always best to get on top of these first before borrowing more. Talk to your lenders to make a plan to get your finances back on track. This will help to improve your credit score.
Can I get car finance if I have a bad credit score?
You don’t necessarily have to have a good credit score to be approved for car finance – but it helps! Some lenders are willing to help borrowers with a poor credit score, and a few even specialise in poor credit history finance.
So, if your credit score isn’t great, it doesn’t necessarily mean that you won’t be able to finance your car. It just means that you might have to shop around to find the right lender for you.
Be careful though: if you’re struggling to pay off your existing debts it’s always best to get on top of these first before borrowing more. Talk to your lenders to make a plan to get your finances back on track. This will help to improve your credit score.
Can I get car finance if I have a bad credit score?
You don’t necessarily have to have a good credit score to be approved for car finance – but it helps! Some lenders are willing to help borrowers with a poor credit score, and a few even specialise in poor credit history finance.
So, if your credit score isn’t great, it doesn’t necessarily mean that you won’t be able to finance your car. It just means that you might have to shop around to find the right lender for you.
Be careful though: if you’re struggling to pay off your existing debts it’s always best to get on top of these first before borrowing more. Talk to your lenders to make a plan to get your finances back on track. This will help to improve your credit score.
Will applying for finance affect my credit score?
When you apply for car finance, many lenders will start with what is known as a ‘soft credit check’ as part of the application process. This type of credit check won’t impact your credit score.
If you’re unsure about your credit score and would prefer to know before applying, you can check your credit score for free on these sites:
● MoneySavingExpert Credit Club
Not all lenders offer a soft credit check, but those who do should make it clear at the beginning of the process – as we do at Oodle.
We will only register what is known as a 'hard search', which is visible by other lenders, if you are approved for finance with us and you decide to take up that finance. This is done once you have signed your agreement with us.
Will applying for finance affect my credit score?
When you apply for car finance, many lenders will start with what is known as a ‘soft credit check’ as part of the application process. This type of credit check won’t impact your credit score.
If you’re unsure about your credit score and would prefer to know before applying, you can check your credit score for free on these sites:
● MoneySavingExpert Credit Club
Not all lenders offer a soft credit check, but those who do should make it clear at the beginning of the process – as we do at Oodle.
We will only register what is known as a 'hard search', which is visible by other lenders, if you are approved for finance with us and you decide to take up that finance. This is done once you have signed your agreement with us.
Will applying for finance affect my credit score?
When you apply for car finance, many lenders will start with what is known as a soft credit check as part of the application process. This type of credit check won’t impact your credit score.
If you’re unsure about your credit score and would prefer to know before applying, you can check your credit score for free on these sites:
● MoneySavingExpert Credit Club
Not all lenders offer a soft credit check, but those who do should make it clear at the beginning of the process – as we do at Oodle.
We will only register what is known as a 'hard search', which is visible by other lenders, if you are approved for finance with us and you decide to take up that finance. This is done once you have signed your agreement with us.
Can you part exchange a car on finance?
Yes, it’s possible to part exchange your car if there’s still some finance left to pay on it – although this should always be discussed with your lender before you do.
The process would involve repaying the amounts outstanding under the existing car finance agreement. If the amount remaining on your finance agreement is more that your current car is worth, then you are in negative equity.
Can you part exchange a car on finance?
Yes, it’s possible to part exchange your car if there’s still some finance left to pay on it – although this should always be discussed with your lender before you do.
The process would involve repaying the amounts outstanding under the existing car finance agreement. If the amount remaining on your finance agreement is more that your current car is worth, then you are in negative equity.
Can you part exchange a car on finance?
Yes, it’s possible to part exchange your car if there’s still some finance left to pay on it – although this should always be discussed with your lender before you do.
The process would involve repaying the amounts outstanding under the existing car finance agreement. If the amount remaining on your finance agreement is more that your current car is worth, then you are in negative equity.
What checks are done for car finance?
When applying for car finance, lenders will typically carry out several checks to assess your creditworthiness and determine whether you're a suitable candidate for a loan. These checks may include:
Credit check: Lenders will check your credit history and credit score to determine your creditworthiness. This includes looking at your payment history, outstanding debts, and any defaults or missed payments.
Affordability check: Lenders will assess your income and outgoings to determine whether you can afford the monthly payments on the loan. This includes looking at your employment status, salary, and any other sources of income.
Identity check: Lenders will verify your identity to ensure that you are who you say you are. This includes checking your name, address, and date of birth against public records.
What checks are done for car finance?
When applying for car finance, lenders will typically carry out several checks to assess your creditworthiness and determine whether you're a suitable candidate for a loan. These checks may include:
Credit check: Lenders will check your credit history and credit score to determine your creditworthiness. This includes looking at your payment history, outstanding debts, and any defaults or missed payments.
Affordability check: Lenders will assess your income and outgoings to determine whether you can afford the monthly payments on the loan. This includes looking at your employment status, salary, and any other sources of income.
Identity check: Lenders will verify your identity to ensure that you are who you say you are. This includes checking your name, address, and date of birth against public records.
What checks are done for car finance?
When applying for car finance, lenders will typically carry out several checks to assess your creditworthiness and determine whether you're a suitable candidate for a loan. These checks may include:
Credit check: Lenders will check your credit history and credit score to determine your creditworthiness. This includes looking at your payment history, outstanding debts, and any defaults or missed payments.
Affordability check: Lenders will assess your income and outgoings to determine whether you can afford the monthly payments on the loan. This includes looking at your employment status, salary, and any other sources of income.
Identity check: Lenders will verify your identity to ensure that you are who you say you are. This includes checking your name, address, and date of birth against public records.
How much car finance can I get?
The amount of car finance you'll be offered can depend on a number of factors, including your credit history, income, and expenses. Generally, lenders need to be sure that you’ll be able to repay the loan when deciding how much to lend you.
To get an idea of how much car finance you can get, you can use a car finance calculator. Keep in mind that this is just an estimate, and the actual amount you're offered may be different depending on the lender's criteria.
How much car finance can I get?
The amount of car finance you'll be offered can depend on a number of factors, including your credit history, income, and expenses. Generally, lenders need to be sure that you’ll be able to repay the loan when deciding how much to lend you.
To get an idea of how much car finance you can get, you can use a car finance calculator. Keep in mind that this is just an estimate, and the actual amount you're offered may be different depending on the lender's criteria.
How much car finance can I get?
The amount of car finance you'll be offered can depend on a number of factors, including your credit history, income, and expenses. Generally, lenders need to be sure that you’ll be able to repay the loan when deciding how much to lend you.
To get an idea of how much car finance you can get, you can use a car finance calculator. Keep in mind that this is just an estimate, and the actual amount you're offered may be different depending on the lender's criteria.
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