So, how does car finance work?
You may have seen the term ‘car finance’ thrown around online or advertised at a local dealership, but what does it actually mean? Whether you’re a first-time buyer, wanting to upgrade your current model or just browsing, we’re here to demystify the world of car finance.
As leading experts, we know a thing or two about financing a car. And it’s a lot simpler than some would make it out to be. Oftentimes, the process can be long and complicated, with some applicants being rejected due to adverse credit histories.
Not with us!
At We Finance Any Car, we have a wide range of flexible car finance solutions to explore. Whatever your financial situation, we’ll do our best to help.
Can’t wait to get behind the wheel? Our process is quick and easy – apply today.
For many, owning a car is an everyday essential. However, not everyone will be able to buy a car in full and upfront.
The solution?
Car finance is becoming an increasingly popular way of buying a car, whether brand new or second-hand. In a nutshell, you borrow the money needed to pay for the car from a specialist lender and then repay it in a series of monthly instalments. This makes it much more affordable and manageable with your budget.
With us, you don’t even need to put down a deposit. If you have the funds for an initial deposit, it can help to reduce the total amount you’ll need to pay. However, we understand that this simply isn’t feasible for everyone and can make securing a finance agreement difficult. That’s why we offer no deposit car finance.
For more information on how it works with We Finance Any Car, explore our 3-step process here.
As a credit broker, we can’t actually supply car finance. However, we work as the bridge between you, the applicant, and our extensive network of lenders, the ones who offer the finance agreements.
Our role is to understand your unique needs and connect you with the most suitable lender. It’s as simple as that.
This is essentially a contract between you and the lender. Once signed, you are committed to making regular monthly payments until the loan term comes to an end.
The agreement will include the loan amount, interest rate, repayment schedule and any other details.
In simple terms, the interest rate is the cost of borrowing money. As a percentage, it represents the extra amount you’ll need to pay back on top of your loan amount.
This will be based on a few factors, including your credit loan, the length of the repayment period and the type of finance agreement. If you have a healthy credit score, you are more likely to receive a lower interest rate.
At We Finance Any Car, we work with an extensive lending panel to ensure our applicants get the best rate possible.
Once you’ve submitted your application, our lenders will perform a quick credit check. Although this is an important step in the approval process, it isn’t anything to worry about.
While you may have experienced a rigorous investigation in the past, our lending panel only needs a snapshot of your profile to ensure you’re eligible for a finance agreement. This will be done through an initial soft credit search, protecting your credit score from any damage.
This is a 3-digit number that can be found on your credit report. It can be affected by multiple factors, including your payment history, how much available credit you are currently using and how long you have had a credit account.
To be able to offer you a finance deal, the lender needs to be confident that you are financially responsible and have the means to meet the monthly deadlines. Otherwise, both you and the lender could be at risk of financial difficulties.
The higher the credit score, the more likely you are to fulfil the agreement. Well, that’s the idea…
We recognise that it’s not always as straightforward as that and your creditworthiness isn’t a reflection of whether you deserve to buy a car or not.
Life can be tough and often beyond your control. That’s why we have a human-first approach, offering a wider range of options for a wider range of credit backgrounds.
This inclusive approach enables us to increase your chances of approval, whether you’ve missed payments in the past or you have a low income and affordability is an issue.
Because car finance should be an option for everyone.
This is the most common type of car finance, giving you the lowest total cost, fixed interest rates and no mileage restrictions. You can use it on pretty much any new or used vehicle, making it a versatile option.
Looking for a tailored finance deal? Explore our HP car finance.
Who can apply?
As long as you’re 18 or older, have proof of identification and a stable source of income, you should be able to apply for Hire Purchase. More specific criteria can vary from lender to lender, however, this is an accessible car finance option for most individuals.
How does HP car finance work?
Once you’ve chosen your car and been approved for a finance agreement, you’ll start making fixed monthly payments to the lender over the agreed loan term. These payments will be based on the total loan amount, as well as the interest rate and any additional fees.
Because the loan is secured against the value of the car, you are effectively hiring it from the lender until you’ve fulfilled the agreement.
What happens at the end of the agreement?
As long as you’ve met all the payment deadlines, you will have full ownership at the end of the contract. Keep it, customise it or even sell it – the car is entirely yours!
This is a slightly more complex way to buy a car, but it gives you a little extra flexibility.
Alongside Hire Purchase, Personal Contract Purchase is one of the most popular types of finance and is great for those who like to change their car on a regular basis. It offers less commitment to car ownership and more freedom to explore different makes and models.
Looking for a tailored finance deal? Explore our PCP car finance.
Who can apply?
The standard criteria, including age and income, will be similar for PCP. However, because of the flexible nature of this type of agreement, having a strong credit profile is preferable. If your credit score has been affected by past financial difficulties, Hire Purchase may be a better route to go down.
How does PCP car finance work?
Because the total amount will be based on the car’s predicted depreciation (its decrease in value), the monthly payments tend to be lower. An optional final payment, known as the balloon payment, will also be determined at the beginning of the contract. This is based on the car’s predicted value at the end of the term.
Sounds a tad complicated, but don’t worry, we’ll be there to answer any questions or queries along the way.
What happens at the end of the agreement?
You’ll have a few options. Once you’ve come to the end of your contract, you can either pay the final amount and keep the car, return it or swap it for another model.
Did you know that you can refinance the balloon payment of your PCP car? This is ideal for those who have found their perfect match but haven’t been able to budget for that optional lump sum.
Our team will work hard to find the best solution for your individual circumstances. Remember, if you have a less-than-perfect rating, securing a finance deal is by no means impossible!
For those who are struggling to get approval, those who have had their confidence knocked or those who are hesitant to even apply, we offer a bad credit car finance service.
Our job is to help you secure a suitable finance agreement. Your job is to get a few things in order before submitting an application. The more prepared you are, the smoother the process will be.
Here are some key considerations:
Take a look at our affordable car finance options to begin your car-buying journey. Whether you’ve just passed your test, you’re in need of a reliable daily driver or you’re ready to make the leap and buy an electric car, you’re in the best hands.
Once you’ve found the right fit, submit an application and we’ll take care of the rest.
Mon to Fri: 08:00 – 19:00
Saturday: 09:00 – 16:00
Sunday: 10:00 – 16:00
