car finance calculator Archives

How to Avoid Common Pitfalls on Your Car Finance Application

The car finance application process might not be as exciting as picking out your make, model and trim level. But trust us, it’s just as important.

What’s at stake?

Get it wrong, and you could face higher interest rates, unfavourable terms and in a worst-case scenario, flat-out denial of your application.

Get it right, and you can secure a deal that fits your budget, with manageable payments, fair interest rates and best of all, the coveted ‘your application has been approved’ letter.

The key to success? Avoiding online car finance application pitfalls. Whether you’re completely new to auto finance or are a bit of an old hand, here’s your definitive guide to avoiding the most common mistakes.

Know your budget before applying

Get your financial ducks in a row before starting the car finance application process. The sticker price of the car is important but don’t forget to factor in the boring bits. Extras like insurance, maintenance, fuel and repairs should all be written into your final budget. A good understanding of your overall financial picture will help you set a budget that won’t leave you eating beans on toast for the next three years.

Tools like a car finance calculator are your best mates here. In a few clicks, you can estimate how much you can borrow, what your monthly payments might look like and how different terms affect the overall cost. Why crunch your numbers now? It’s simple. So you can make sure you’re not biting off more than you can chew.

Check your credit score

Lenders don’t know you personally, so a simple “I’m good for it” won’t suffice for a car finance application. Instead, they scrutinise your credit score. This numerical reflection of your financial reliability is like a vehicle maintenance log, except for your personal finances. Things like your payment history, outstanding debts, length of credit history and new credit enquiries can all affect your credit score.

Don’t stress if your score’s less-than-perfect though, there are ways to get back on track.

Play it smart with lenders

Sending off online car finance applications to multiple lenders might seem like a good way to increase your chances of approval. The reality? Too many “hard searches” on your credit file can make you seem like a risky borrower. Stick to soft searches or pre-approval tools that let you check your eligibility without leaving a mark.

Use credit check tools

Check your credit score with tools like Experian and Equifax before you apply. These will show you what lenders see and give you a chance to tidy up any issues.

Explore options for bad credit

Credit score looking a little worse for wear? Specialist lenders, like the ones we work with at My Car Credit, offer tailored finance options for auto finance applicants with poor credit.

Consider any additional costs

Monthly payments aren’t the whole story when it comes to car finance. Forgetting about the extra costs is one of the most common mistakes – don’t let it catch you out.

Beware the balloon payment

There’s likely a balloon payment waiting at the end of your term if you’ve gone for a PCP agreement. It can be a nasty surprise if you’re not prepared. Check out our balloon payment guide for a full rundown on what this is.

Work with the experts

The easiest way to avoid car finance application roadblocks? Work with someone who knows the ropes. We lay out all the costs upfront at My Car Credit, so you know exactly what you’re signing up for. No smoke, no mirrors. Just clear, honest advice from professionals who know their stuff.

Make sure your car finance documents are in order

Nobody loves paperwork, but when it comes to car finance, it’s non-negotiable. Missing documents can bring your application to a grinding halt, even if your credit score is best-in-class.

Your essential checklist

Here’s what you’ll need to have ready for your car finance application:

ID – Passport or driver’s licence
Proof of address – Recent utility bill or bank statement.
Proof of income – Payslips or tax returns if you’re self-employed.
Bank details – For setting up payments.

How My Car Credit can help

Worried you’ll miss something? This is where we come in. At My Car Credit, we know our way around the car finance application process. We’ll guide you through the paperwork step-by-step and make sure you’ve got everything sorted before your application’s sent off. With the right preparation, there’s no reason you can’t get it right the first time.

Next steps for a smooth car finance application

With your budget set out, your credit score checked and your documents in order, you’re ready to hit send on your car finance application.

Here are a few final tips to keep things stress-free:

Stay organised

Create a folder (digital or physical) for all your car finance application documents. Having everything in one place saves time and keeps headaches at bay.

Ask for help when you need it

Confused about anything? Don’t suffer in silence. My Car Credit is just a click or call away. We’re here to answer your questions about the car finance application process and help you get it right the first time.

Use online tools

From the My Car Credit budget calculator to free online credit checks with agencies like Experian, online tools are a fantastic resource. Use them – they’re designed to make your life easier.

Getting your car finance application approved isn’t rocket science. Success is all about preparation, attention to detail and working with the right team. By knowing your budget, checking your credit score, factoring in all costs and getting your documents in order, you can give yourself the best possible shot of an ‘approved’ verdict.

Don’t forget, My Car Credit is here to help every step of the way, so fill out an online car finance application and let’s get started.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

How to Strengthen Your Eligibility for Car Finance

Love the idea of car finance but worried you might not be eligible? We’ve got you. Whether your score is showroom shiny or could use a bit of panel-beating, these tips on how to strengthen car finance eligibility will get you in the fast lane to approval.

Am I eligible for car finance? Here’s the thing. A strong application isn’t just a box-ticking exercise. It’s the key to unlocking better deals, lower interest rates and ultimately, the car you’ve been dreaming of. Putting in the groundwork now means fewer obstacles, more options and a better shot at driving away on terms that work for you.

And the best part? Car finance eligibility isn’t complicated. With the right moves and a decent understanding of how eligibility works, you can boost your chances of approval.

This is where My Car Credit comes in. We’re all about making car finance accessible for everyone. Yes, even applicants with less-than-perfect credit. Ready to take the first step? Let’s get stuck into those tips so you can stop wondering “will I get accepted for car finance”.

How you can check and improve your credit score

Your credit score is the financial equivalent of your driving record. A few bumps? Sure, they happen. But lenders might think twice if your score looks like the aftermath of a demolition derby.

Credit scores typically range from 0 to 999 in the UK, depending on the credit reference agency (CRA) running the check. A score above 700 is considered good, while anything below 500 could mean extra hoops to jump through.

Not sure where you stand? Checking your credit score is simple. Services like ClearScore and credit agencies like Experian let you peek under the bonnet for free.

If you do have a rough idea of your credit score, or you just want to play around with different car finance eligibility scenarios, plug your details into our car finance calculator. It’s a nifty tool that gives you a no-strings-attached estimate of what you could borrow.

Want to give your credit score a bit of extra horsepower? Here’s the blueprint:

Get on the electoral roll – Registering to vote is an easy way to improve your credentials with lenders.

Pay bills on time – Late payments leave marks lenders don’t love. Treat your bills like a pit stop – timing is everything. For example, paying a utility bill a week late might not feel catastrophic at the time, but it could knock a few hard-earned points off your score. This could ultimately mean the difference between approval and rejection.

Trim unused credit cards – A wallet full of credit cards isn’t impressive to lenders. It’s nerve-wracking to them. Keep the essentials and ditch the rest.

Dispute errors – If your credit report’s showing dents that aren’t yours, get them polished off. Every point counts towards car finance eligibility.

Save for a bigger deposit

The maths is simple for this one. Bigger deposits = happy lenders.

Am I eligible for car finance if my credit score is lacking? Yes, and a hefty deposit can help win over lenders. For example, a 20% deposit compared to 10% says, “Hey, I’m serious about this” and ready to commit. Beefing up your down payment can often lead to better deals and lower monthly payments.

Start by tracking your monthly expenses and cutting out non-essentials. Skipping your daily takeaway coffee might feel negligible but over six months, it could add up to a significant boost to your deposit.

Padding out your deposit isn’t just about strengthening your car finance eligibility. A larger down payment reduces the total amount you need to borrow. This means you’ll pay less interest over the life of the loan.

But what if you’re in a rush? Here’s a tip – consider a more affordable car. That way, your saved-up deposit goes further, and you’re still motoring in style. Just maybe not in a brand-new coupe… for now.

Avoid applying to multiple lenders simultaneously

Scattergun applications? That’s a hard pass.

Applying for finance with every lender under the sun might seem like a good idea. Especially if terms like ‘guaranteed car finance’ are dangled in front of you. But here’s the thing. It’s not. Every application adds a hard search to your credit report which lenders can see. Too many at once can make you look desperate for borrowed cash.

Let’s say you apply to five lenders in a month. Each one leaves a mark on your credit report and when the sixth lender sees this, they might think, ‘Why didn’t the others say yes?’ Suddenly, you’ve got a problem.

My Car Credit simplifies this. We do the legwork and submit applications on your behalf without turning your credit score into Swiss cheese. We also go the extra mile to match you with the best options for your unique situation, without the credit score bruising that comes from multiple applications.

What does this mean for motorists like you wondering will I get accepted for car finance? Less hassle, no damage to your credit score and a higher chance of getting the deal you want.

Be honest about your financial situation

Honesty is the best policy when applying for car finance. You wouldn’t claim your Fiat Panda can outpace a Bugatti, so don’t overstate your income or underplay your expenses. Lenders are smart and fibbing will only slow you down. Or worse, derail the whole process.

Am I eligible for car finance if my finances aren’t in great shape? High street banks might not approve your application, but you might be pleasantly surprised with the response from alternative lenders.

The bottom line? Be transparent. No smoke, no mirrors. It works both ways. Being upfront about your situation helps lenders tailor a deal that works for you.

Your next step to a stronger car finance application

Improving your eligibility for car finance isn’t just about meeting the minimum requirements. It’s about doing everything you can to unlock better options. The right preparation now could mean cruising into approval instead of idling in uncertainty.

Ready to fast-track your way to car ownership? At My Car Credit, we’re here to help boost your eligibility for car finance and get you behind the wheel. Apply now and let us help you secure a finance deal that works for you, no matter what your financial history.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Much Does Car Finance Cost? Check Now!

Check for car finance without affecting your credit score

7 Advantages of Used Car Hire Purchase

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance car finance calculator car finance eligibility eligibility for car finance

Tips for Securing Affordable Used Car Finance Monthly Payments

A bit of strategic thinking goes a long way when it comes to keeping monthly car payments manageable. Financing used cars is a great start but it’s not the only way to save. Here’s a mix of tried-and-true methods and lesser-known hacks to help you lock in affordable monthly payments while still securing the car you need.

Why Buying a Used Car Can Be the Smart Choice

No surprises here – keeping monthly payments affordable is usually a top priority for Brits interested in car finance for used cars. After all, your budget needs to cover more than just the vehicle itself. It has to balance against rent, bills and the unexpected costs that come with day-to-day life. Not to mention the costs associated with car ownership in general.

Buying used can make a lot of sense when monthly payments are a priority. Why? Lots of reasons.

Used cars are priced lower than new models which makes it easier to find finance terms that fit within a realistic budget. Even better, they’ve already bypassed the dreaded depreciation phase. Just how bad is depreciation? A new car can lose around 20% of its value within the first year. In comparison, a used car has already absorbed most of this hit. Financing a used car means you’re essentially paying closer to the vehicle’s real, lasting value. This translates to a better deal over the life of your loan.

Wondering if used cars can be purchased on finance? Absolutely.

Finding the right used car finance plan can make all the difference and allow you to enjoy car ownership without stretching yourself too thin. This is exactly what we specialise in at My Car Credit. We ditch the cookie-cutter method and use a personalised approach to help you find the right finance plan. A tailored plan can be the difference between struggling with payments and owning a car that feels right at home in your budget.

Understand Your Budget Before Applying

Select your weapon of choice – your smartphone’s budgeting app, a simple spreadsheet or good old-fashioned pen and paper – and get real about your budget. You want to find out how much can you spend each month without tightening your belt too many notches.

Start with the essentials – rent, bills, groceries and whatever else keeps your household running. What’s left over? That’s your baseline for a comfortable car finance payment for used cars.

If you’re the number-crunching type – or if maths just isn’t your thing – the My Car Credit’s affordability calculator has your back. It helps you plug in your numbers and get a realistic look at what fits.

Poor Credit? Not to Worry

Maybe your credit history’s not sparkling? Join the club. Poor credit doesn’t mean you can’t finance a used car. It just means you might need a slightly different playbook. Sure, you could see higher interest rates, but affordable monthly payments aren’t off the table.

Good lenders will look beyond your credit score and consider factors like steady income and a decent deposit, to gauge the bigger picture. Some plans are built with flexibility in mind for people in this exact situation. This makes it possible to balance your car payments alongside everything else life throws your way.

Curious what’s possible with your situation? Use the My Car Credit affordability calculator to get a tailored view of what’s realistic. When you have your figure you can start the fun part – looking for a used car to finance!

Consider a Larger Deposit to Lower Monthly Payments

Got some cash stashed away? Using it to pay down a chunk of your car finance deal can be a smart move. A larger deposit lowers the amount you’ll need to borrow and as a result, shrinks your monthly payments. Plus, it earns you a big, shiny gold star with lenders.

The best part? You’ll continue to enjoy the benefits month after month, for the duration of your contract.

Want to see the impact? Try adjusting the deposit amount in My Car Credit’s finance calculator and watch how those monthly payments respond. You’ll likely find that even a small boost can ease the financial pressure and give you some breathing room.

Looking for a deal that fits your budget? Our team is here to help you find an auto finance agreement that works for you. Get in touch with an advisor today to chat about options for financing used cars.

Opt for a Longer Finance Term

Maybe a big deposit isn’t on the cards right now. If this is the case, it might be worth extending your finance term. By spreading the loan over a longer period, you can lower each monthly payment and make your loan easier to manage.

But there’s a trade-off. A longer term means you’ll pay more interest overall. It’s not necessarily a bad thing, if your priority is getting your monthly payments as low as possible. But it’s something to be aware of with car finance for used cars.

The key is finding a term that doesn’t stretch your budget now or hit you too hard in the long run.

Improve Your Credit Score for Better Terms

Down to play a longer game? Let’s talk about credit scores.

They have their quirks, but there’s no doubt they impact what you’ll pay in interest when financing used cars. A higher score generally unlocks lower interest rates, which brings down your monthly payments. If you’re not in a rush, take a few months to tidy up your credit. Small changes can make a big difference so don’t underestimate the potential.

The below tips aren’t just effective but are easy to action:

Clear up any lingering debts – High-interest debts (especially credit cards) are worth tackling first. And regular bill payments are non-negotiable if you want to keep that score healthy.
Skip new credit applications for now – Each application can give your score a bit of a ding, so it’s best to avoid new credit in the months leading up to your car finance application.
Stay on top of your current accounts – It sounds obvious, but consistent, timely payments on your existing accounts can build your score bit by bit.
Join the electoral roll – This one’s a quick win. Registering to vote in the UK is a simple way to boost your credit score. Lenders look for stability and being on the electoral roll helps verify your identity and ultimately, add a bit more weight to your credit profile.
Keep credit utilisation low – Aim to use only a small portion of your available credit. For instance, if you have a credit limit of £1,000, try to keep your balance below £300. This shows lenders you’re not maxing out your accounts.
Regularly check your credit report – Errors do happen. Reviewing your report every few months can help you spot and dispute any inaccuracies. We’re talking anything from outdated information to mistaken identities. It’s also a good way to keep an eye on anything that might need attention.

The goal is to make your credit profile look as healthy as possible, so you qualify for better finance terms when financing used cars. If you’re interested in more tips, check out our guide to improving your credit.

Choose a Car That Fits Your Budget

The car itself is a big factor when it comes to monthly payments. It’s easy to be tempted by hyped models like the revamped Tesla Model Y and Mini Aceman all-electric crossover SUV. But if affordable payments are your goal, buying second-hand can be a practical move.

Looking for a used car to finance? The UK market is packed with options that balance value and reliability. Ford Fiesta, Nissan Qashqai and Renault Clio – These aren’t just bestselling models (though their popularity does ensure there’s plenty of stock on the second-hand market). Used models all promise solid performance without draining your wallet.

Our advice? Do your homework, shop around and you’ll find a used car to finance that ticks all your boxes.

Get Personalised Support With the My Car Credit Team

Financing a used car doesn’t have to be a solo mission. And it certainly doesn’t have to be stressful. At My Car Credit, our team is here to guide you through the ins and outs of securing a finance plan that fits your budget. Whether it’s deciding on a deposit amount, weighing the pros and cons of different terms or figuring out what car fits best, we’re here to help you with personalised advice, every step of the way.

Ready to drive your next car on your terms? Start with our online application. It only takes a few minutes, and it’s designed to keep things simple so you can get behind the wheel faster.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Do Balloon Payments Work?

How to Finance a Car in 4 Easy Steps

Check for car finance without affecting your credit score

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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What to Look for in a Car Loan Quote

Most UK drivers just don’t have the cash to pay for a car upfront.

That’s where car finance comes in. Car finance is a catch-all term referring to a type of credit agreement. With car finance, you’ll borrow a pre-agreed amount of money from a lender. You then use this cash to purchase a vehicle and pay the loan back through a series of affordable monthly repayments, plus interest.

Car finance is an affordable, accessible, and flexible way to get behind the wheel of your dream car. In this article, we’ll examine what to look for in a car loan quote.

6 things to look for in a car loan quote

When shopping around for a car loan quote, you’ll likely come across a lot of jargon. You can use our car finance jargon buster to break down the kinds of terms that you might face in your search.

APR

An abbreviation of annual percentage rate, an APR refers to the full cost of your annual borrowing for a car loan. The higher the APR, the more you’ll pay overall.

An APR differs from an interest rate because it includes all standard fees and charges, as well as any interest you’ll be expected to pay. Therefore, it gives you an indication of the true cost of your car finance.

The APR must be disclosed before an agreement is signed, so you should always check this out when shopping for a car loan quote.

Comparing the APR offered by different lenders is a good way to compare car finance deals. Remember that the representative APR advertised is a benchmark – not all borrowers will receive it, so you need to check the APR that you’re offered.

Type of finance agreement

When shopping around for a car loan quote, consider what kind of car finance might best suit you.

One of car finance’s main draws for motorists is its flexibility. Different types of car finance agreements are available to suit different drivers.

Not all finance packages will work for everyone: your unique circumstances and needs will determine the right type of car loan quote.

Remember that the length of the loan term will also impact how much you pay in interest. The longer the term, the more you’ll pay back.

Any conditions or terms of the agreement

Different drivers have different priorities, so don’t opt for a ‘one-size-fits-all’ car loan quote.

Some motorists may be happy with mileage restrictions. Others might want to own the car outright, whilst some drivers are happy with the option to own the vehicle at the end of the agreement, or even to hand it back. Alternatively, you can find agreements which don’t require a deposit. It’s also worth knowing that you can face fines with some car finance agreements if you cause undue wear and tear on the vehicle.

When you’re looking for the right car loan quote for you, be realistic about your needs and circumstances, as well as the kinds of terms that will work for you. For example, if your work requires you to make long journeys frequently, choosing a car finance agreement with mileage restrictions may not be suitable.

Poor credit car finance

If you’ve got a poor credit score, you may not be eligible for certain car loan quotes.

Look for a lender like My Car Credit. We offer poor credit car finance to drivers with less-than-perfect credit scores. We combine a wide panel of trusted lenders with a sensible approach to help you get approved for a finance agreement that works for your circumstances.

Used car finance

Purchasing a ‘new to you’ vehicle is a great way of getting on the road without forking out for the sizeable outlay of a more recent car make and model.

If you’re looking for a car loan quote for a used or nearly new vehicle, check if your lender has used car finance available.

There are plenty of options for financing a used or nearly new car, with different agreements available to suit your unique situation and preferences.

Plus, if you’re looking for both your car and car finance in one go, check out if your lender or broker can help you with both. At My Car Credit, we’ve established excellent relationships with a large number of reputable car dealers across the UK, helping you to source your next nearly new car and car finance in one go.

Reputability and size of lender

It goes without saying that you should always establish the reputation of any lender offering you a car loan quote before signing a contract.

At My Car Credit, we’re part of the UK’s largest motor finance broker, Evolution Funding. This gives us access to the largest panel of car loan companies, meaning you’re more likely to find a car finance deal that suits your circumstances.

We’ve also got a friendly and experienced team of Car Credit Specialists who can offer any advice and guidance that you need throughout the process.

Plus, we’re also the ‘Best Broker’ winner for the ninth year running at the Car Finance Awards 2024, so you know you’re in good hands.

Find a car loan quote to suit you today

My Car Credit is dedicated to helping you find the best car loan quote for your needs and circumstances.

We pride ourselves on our speedy, hassle-free online application process. With us, you’ll receive a no-obligation quote in minutes, and any rate you see is the rate you get.

Do the maths today with our free online car finance calculator and get on the road to your next car.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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How Much Car Finance Do I Qualify For?

Is there such a thing as guaranteed car finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance car finance calculator car finance options car loan Jan24 used car

How to Get a Car Finance Quote Online

Man with headphones getting a car finance quote online

Gone are the days when prospective buyers had to visit brick-and-mortar car dealerships to secure a car finance quote.

It’s easier than ever to find a car finance quote online that works for your unique needs and circumstances. Read on to find out how to find an online car finance quote and discover the variables you need to consider when shopping around.

How to get a car finance quote online in three steps

With My Car Credit, finding a car finance quote online can be done in three easy steps:

1. Complete an application

Use our car finance application to crunch the numbers on your next set of wheels.

We’ll ask you to enter details like your loan amount, repayment term, and credit rating, as well as providing some personal information. From there, we’ll give you an instant breakdown of your expected monthly repayments, along with the typical rate and total payable. You’ll receive a no-obligation quote in mere minutes, benefitting from an instant online decision based on the information you give us.

If you’re happy with your rate, you can hit ‘apply now’ to complete your application. With us, the rate you see is the rate you get – it’s inclusive of all fees and costs, so you won’t face any nasty surprises down the road.

Plus, our initial credit check is only ever a soft search, so it won’t impact your credit score. However please note that should you progress, some lenders may perform a hard search on your credit file.

2. Go car shopping

If you choose to advance your application, you’ll be assigned a Car Credit Specialist. Our team are friendly, experienced professionals, and they’ll be on hand to answer any concerns or queries you might have throughout the process.

Now you’ve got a sense of your budget, you can crack on with the fun part – shopping for a car! If you’re looking for advice, your assigned Car Credit Specialist will be able to help you find a perfect car from one of our trusted dealers. Alternatively, let us know if you’ve found a vehicle, and we’ll check the dealer is top notch.

3. Get behind the wheel

You sign all documents from the comfort of your own home, and we’ll coordinate any last-minute liaison between the dealer and lender. Once all parties are happy, funds are typically transferred to your dealer the next working day. You can then collect your car keys and take to the road in your new to you, or used vehicle.

Factors to consider when searching for a car finance quote online

With My Car Credit, securing a car finance quote online is a stress-free process achieved in three easy steps. That said, there are a number of things to keep in mind when you’re shopping around for a quote.

Type of finance agreement

The right kind of car finance agreement for one driver might not be the best agreement for another. Understanding the difference between alternative car finance agreements means you’re more likely to find one that accommodates your unique needs and circumstances.

At My Car Credit, we appreciate that no two drivers are the same. Some motorists may want to pay a sizeable deposit to lower their overall monthly repayments. Alternatively, other drivers may want to pay back more affordable monthly instalments and have the option of returning the car at the agreement’s end.

We pride ourselves on the flexibility, accessibility, and affordability of our car finance agreements, and can help you find the right deal for your priorities.

Terms of finance agreement

It’s worth paying attention to the terms of a finance agreement in order to establish the right one for you.

Drivers looking to own their car at the end of their finance agreement might not benefit from the same terms as drivers looking to hand the vehicle back. Equally, whilst some motorists are happy facing mileage limitations, others need the flexibility of minimal restrictions.

Determine your priorities before shopping around for your car loan quote online to ensure you secure the best finance agreement for your needs.

Credit checks

If you’re a driver with a less-than-perfect credit score, you may feel like car finance won’t be made available to you.

In fact, My Car Credit offers poor credit car finance designed specifically for applicants with less-than-ideal credit ratings.

We consider all circumstances and will look at each case individually and without judgement. Our initial credit check is also only a soft search, but please note that should you progress, some lenders may perform a hard search on your credit file.

Plus, because we combine a wide panel of trusted lenders with a sensible approach, we’ll help you find the most appropriate car finance lender for your circumstances. As such, we may be able to approve you for car finance where others haven’t.

What’s more, by making your monthly repayments in full and according to schedule, you’ll be building up your overall credit rating. This could potentially make you a more attractive candidate for future loans.

Securing a vehicle and finance agreement in one

If you’re a fan of multi-tasking, you may want to secure both your car and online car finance quote in one.

My Car Credit has established excellent relationships with a large number of reputable car dealers across the UK. We’ve got a reliable pool of trusted dealers who can help you source your next used car and car finance agreement in one go!

Get a car finance quote online with My Car Credit

With the largest panel of car finance lenders out of any UK broker, My Car Credit will help you get a car finance quote online that works for your needs and circumstances.

Use our online car finance calculator to kickstart your application today.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Can I Give My Car Back to the Finance Company?

How Do Balloon Payments Work?

Leasing vs Finance: What’s the Difference and Which is Better?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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What Checks Are Done for Car Finance?

Car finance is a way of making the process of purchasing a new or nearly-new vehicle easier, allowing you to spread the cost of your car over a series of affordable repayments.

In order to secure car finance, you may need to provide important personal information, so it’s useful to have certain documents and information to hand. Read on as we outline the checks that are usually done for car finance.

What checks are done for car finance?

The most important checks for car finance tend to be a financial assessment, where lenders will ascertain your employment history and income status, including a credit check. But there are other pieces of information that car finance providers will often ask for in order to gauge whether you’re a responsible borrower or not.

Driving licence

It’s essential that you have a valid driver’s licence when applying for car finance. Without this, you will most likely be rejected.

The car finance provider may contact the DVLA in order to check the authenticity of the driver’s licence. They will also contact the DVLA if you have lost your driving licence, and will usually ask for other proof of identity at the same time.

Proof of identity

For some car finance providers, your driver’s licence will qualify as enough proof of identity. They can cross-reference it with the personal details you’ve provided, as it shows your name, address and date of birth. Others may require alternative documentation. Typically, this may be a passport. If you haven’t entered it as part of your car finance application already, supplementary information like your full name, date of birth, residential and marriage status may also be requested.

Other personal details you may be asked include your current job title and employment details, like whether you’re employed or self-employed. Marital status is another box you may have to fill, though it isn’t going to be a deal breaker in any lender’s criteria.

Address and history of address

Your car finance provider needs to ensure that you’re not making a fraudulent application, and that you’re unlikely to attempt to evade repayment. Asking for your proof of address is one step in the process of confirming this, as it makes you traceable.

You’ll usually be asked for your proof of address history for a minimum of the past three years. This can be in the form of utility bills, council tax and bank statements. You’ll also need to demonstrate your current address, too.

Employment history and proof of income

Expect to be asked about your employment and provide details of your salary and job title. A bank statement will usually be asked for, but payslips and the details of your employment may suffice. If you’re self-employed, you’ll need to provide further documentation.

If your lender feels that you may miss repayments, then your application will likely be rejected.

Credit report

If you have a history of making repayments in a timely fashion, then you’ll have a better credit history and a higher score. Your application is, therefore, more likely to be greenlit.

That said, there are ways of getting car finance even with a poor credit score – you just need to determine whether your finance provider will do so.

What is your finance company checking for?

We’ve covered what checks are done for car finance. But why are they being done? In short, car finance companies need to make sure your car finance application meets their own criteria.

Checking your identity

First and foremost, there are basic checks to ensure nobody is committing fraud. Car finance companies want to know you are who you say you are, for obvious reasons. That’s why they’ll ask for your driving licence and other proof of identity. You’ll also need to provide your address and typically prove that with bank statements or utility bills.

Assessing your reliablity

Other checks are done to assess your reliability for car finance. In other words, how likely are you to keep up with monthly car finance payments? This is primarily done through your credit report, which assesses your credit history.

A car finance company can complete a soft credit check or hard credit check to do so. Soft credit checks provide an overview of your credit report, such as a poor credit score. On the other hand, hard credit searches provide a more in-depth look at your credit history, such as missed payments.

Reliability is also assessed through employment history and address history. If a car finance company sees that you’ve been in and out of jobs, it indicates an unstable financial history. Similarly, looking at the past few years’ address history make raise some flags if you’re constantly moving home, as some people do this to avoid debt.

Looking into affordability

Your credit report isn’t the only thing finance companies use to decide whether you’re accepted for car finance. Another key factor is affordability. Put simply, can you afford the loan repayments on your finance application?

Naturally, an important check here is employment. Your finance company will want to see stable income to ensure you can make monthly payments over the course of your agreement. Additionally, they’ll look at other financial commitments you have. Somebody could be earning a great wage, for example, but already paying out big sums for their mortgage, phone contract, and an existing personal loan.

Checks completed for over a large panel of lenders

There are a number of checks that need to be done when processing car finance. But they don’t have to be a hassle. At My Car Credit, we aim to make the process as simple as possible, with fast and easy online applications.

As a trusted car finance broker, we compare car finance deals from a large network of lenders. That gives you the best of both worlds – the ability to compare deals for your new car without having to provide proof of identity and complete various checks with different lenders.

Additionally, we’ll only perform a soft credit check initially. That means you don’t have to worry about a hard credit check leaving a mark on your credit file, only to be rejected when you apply for car finance. We only use hard credit checks when applications reach the later stages, so you’re much less likely to be rejected.

If you have any questions about the application process and documentation required for car finance, visit My Car Credit and check out our handy online finance calculator to begin your car buying journey.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Understanding How Far Back Lenders Look into Your Credit History

Tips for Car Finance Recovery After a CCJ

How to Strengthen Your Eligibility for Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

apr calculator car finance calculator car financing car loan credit rating credit score finance checks identity interest rate Jan24

Try Our Classic Car Financing Calculator

Are you dreaming of a James Bond moment in a gleaming Aston Martin DB5? Maybe you love the boxy silhouettes of Series Land Rovers, or the retro feel of first-generation Volkswagen Beetles. Whatever makes you tick, classic car finance can help you secure the keys to your very own piece of motoring heritage.

Like standard auto loans, budget is front and centre when financing a classic car. This is where the classic car financing calculator from My Car Credit steps up. Designed to make the budgeting process simple and straightforward, our purpose-built calculator takes the headache out of number crunching. Use it to finetune your budget, estimate monthly payments and explore financing options tailored to you.

Want to know more? Read on for a closer look at our car financing calculator and how it can help you secure a loan for a vehicle as unique as you.

How the classic car financing calculator works

Using our classic car financing calculator is easy. Simply input a few pieces of information to generate an instant estimate of your monthly payments. This includes:

Loan amount

The total amount you wish to borrow to fund your classic car purchase.

Repayment terms

Select the repayment term that best suits your financial situation, typically three to five years.

Personal credit rating score

Provide your personal credit rating to help us calculate what financing options you may be eligible for.

Once you’ve entered this information, our calculator will use a representative APR to calculate an estimate of your monthly payments. It’s a quick, easy and transparent way to find out what to expect in terms of classic car financing.

Crunch your numbers with My Car Credit

In the market for a classic car? Use our classic car financing calculator to crunch your numbers and gain valuable insight into your auto loan options. Play around with loan amounts, explore repayment terms and generate instant estimates for different APRs. Whatever your goals, our classic car financing calculator can help you find the right balance for your budget.

Why use the classic car financing calculator?

Quick and easy

Our calculator is fast, easy to use and generates instant estimates.

Customised solutions

Generate personalised financing options to match your individual circumstances.

Transparent pricing

We use representative APR to provide you with clear and transparent estimates of classic car financing costs.

The next step: a soft search

What’s the next step after using our classic car financing calculator? We’ll take your information and use it to run a soft search. Unlike a hard search, it doesn’t leave a mark on your credit file and isn’t visible to other lenders. It’s a risk-free way to find out if you’re eligible for car finance without compromising your credit score. Please note that should you progress, some lenders may perform a hard search on your credit file.

Don’t let financing stand in the way of classic car ownership. Head to the My Car Credit website to check out the classic car financing calculator to find out more and explore your classic car financing options.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Understanding How Far Back Lenders Look into Your Credit History

Tips for Car Finance Recovery After a CCJ

How to Strengthen Your Eligibility for Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

apr calculator car finance calculator car financing car loan classic car credit rating credit score Jan24

What is the Average Car Loan Interest Rate?

Flexible and affordable, auto finance is one of the most popular ways to purchase a car in the UK. A good understanding of the average car loan interest rate is one of the best ways to make smart and informed decisions when choosing a lender.

In this article, we’ll take a closer look at benchmark car loan interest rates in the UK, as well as exploring the difference between the Bank of England rate, cash interest rate and APR (annual percentage rate).

Britain’s relationship with car loans

Brits love to borrow. According to the Finance and Leasing Association (FLA), over 90% of all cars are bought on finance in the UK, and in the twelve months leading to May 2024, over two million cars were purchased on finance.

With so many benefits on the table, it’s no surprise auto finance is such a popular option in the UK.

What is the average car loan interest rate in the UK?

Different lenders will offer different interest rates for car loans – you can compare between the lenders My Car Credit works with to find the right rate for you.

Bank of England interest rate

The Bank of England interest rate – also known as the Bank Rate – affects the industry rates that lenders charge for different types of credit, including car finance.

It’s reviewed eight times a year to reflect the UK economy. As of February 2025, the Bank of England interest rate is 4.5%.

Most lenders take this base rate, then add to it based on a variety of factors. It’s rare to find any type of loan, whether it’s a home mortgage, cash loan or auto finance agreement, that uses the base interest rate stated by the Bank of England.

Cash interest rate

This is the interest rate the lender chooses to use on the principal loan amount. For example, if you borrow £10,000 at an interest rate of 6%, you’ll be paying an additional £600 in the first year. It describes the cost of borrowing the money itself and doesn’t include any fees or charges added by the lender. Using a car finance calculator is a quick and easy way to crunch the numbers.

Annual percentage rate (APR)

APR offers a more comprehensive view of the total cost of your loan. As well as the cash interest rate it also includes extra fees and charges. For example, if you’re offered a car loan with a cash interest rate of 7%, but the APR is 12%, you’ll be paying 5% in fees.

APR is designed to provide transparency to borrowers and make it as easy as possible to calculate the total cost of your loan. Comparing APRs offered by different lenders is one of the best ways to secure a good deal on car finance.

What is a good APR rate for a car?

APR varies significantly between lenders. That said, it must be disclosed prior to signing any paperwork, so you can shop around and compare these rates when you’re looking for car finance.

Remember that there’s a difference between representative APR and exact APR.

In the UK, borrowers with excellent credit scores should aim for an APR of 10.9%. This is considered a good average car loan interest rate, allowing you to enjoy the benefits of auto finance without absorbing too many extra fees or charges.

That said, this rate will be determined by your individual circumstances, especially your credit score. The lower your credit score, the higher your APR is likely to be. There are other ways to reduce the APR on a car loan too, including applying with a guarantor and choosing a shorter repayment term.

If your credit score is less than ideal, don’t forget that My Car Credit helps with poor credit car finance.

Fixed vs variable interest rates: What’s the difference?

A fixed interest rate remains constant for the entire term of a loan, meaning your monthly payments stay the same. Most auto loans in the UK come with a fixed APR.

A variable interest rate means your monthly interest payments can change, so they’re less predictable.

Choose an auto loan with a fixed interest rate if you want to know how much you’ll pay each month and don’t want to be affected by fluctuating interest rates. Be aware that fixed rates tend to be a bit higher than variable interest rates.

A variable interest rate makes it easier to switch deals or providers early compared to a fixed interest rate. However, your payments will be less predictable, making it harder to budget.

Is a low APR always the best deal?

Low APR means you’ll pay lower average percentage rates compared to the rates on standard auto loans. It’s ideal for buyers with higher credit scores.

However, always do your diligence and read the fine print before jumping for low APR auto finance. Sometimes these offers can come with hidden fees like a minimum deposit requirement, or even vehicle usage restrictions.

You should also understand your total loan cost and ensure your lender is totally trustworthy before agreeing to a low APR deal.

If you have questions about whether a low APR deal is right for you, you can always contact our friendly team of Car Credit Specialists with your questions and concerns.

Get a great car loan deal with My Car Credit

Why settle for an average car loan interest rate when you could unlock an even better deal?

At My Car Credit, we’re committed to helping Brits secure best-in-class APR, with a representative rate of 10.9% – though rates will vary depending on your unique circumstances.

Unsure what kind of APR you might benefit from? Fill out our online form to get a no-obligation quote in minutes and discover the kind of rates and terms you can secure with a car loan from My Car Credit.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Understanding How Far Back Lenders Look into Your Credit History

Tips for Car Finance Recovery After a CCJ

How to Strengthen Your Eligibility for Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

apr calculator car finance calculator car financing car loan credit rating credit score interest rate

What is a Good APR for Car Finance in the UK?

Whether you’re in the market for a budget-friendly Kia Sportage or an all-electric Tesla Model Y, Annual Percentage Rate (APR) is one of the most important metrics to consider when buying a car in the UK. So, what’s a good APR for car finance and why does it matter for British motorists?

It doesn’t matter what kind of car you’re looking to purchase on finance – brand new or used, the annual percentage rate (APR) of a car is one of the most important things to consider.

The APR on car finance represents the total cost of borrowing per year. That makes it a useful metric to compare different car finance agreements for affordability.

Still confused? My Car Credit likes to make things as simple as possible when it comes to car finance. Consider this your guide to all things APR – we’ll help you understand what makes a good APR for car finance in the UK and how to achieve it.

What does APR mean in car finance?

The annual percentage rate (APR) is the total cost of borrowing for car finance per year. It’s inclusive of interest and lender fees, and is expressed as an annual percentage. The lower the APR, the less you’ll pay over the lifetime of a car finance agreement.

APR differs from the interest rate of car finance. The interest rate on a car finance agreement will be included in the APR as well as other lender fees and charges. That’s why the APR reflects the total cost of borrowing.

APR is one of the best ways of comparing car finance deals. If you’re looking for the most affordable agreements for your circumstances, you can use the advertised APRs of different lenders as a metric to compare different deals on a like-for-like basis. The higher the rate, the more you’ll pay back over the term of the agreement.

How APR works and an example

Lenders calculate APR by taking the total loan amount, adding any additional fees (such as processing charges), calculating the total interest payable over the loan term and dividing that total sum by the loan amount. The result will be expressed as a percentage, which represents the APR.

Remember, the lower the APR, the lower the overall loan cost. Alternatively, higher APRs mean you’ll pay more over the loan term.

Here’s an example of APR.

If you’re looking for a £10,000 loan over 5 years with a 6% APR, you can expect to pay approximately:

Monthly repayments: £193.33

Total repayment: £11,599.68

Total cost of borrowing: £1,599.68

Alternatively, if you’re borrowing the same amount over the same time with a 12% APR, you can expect to pay approximately:

Monthly repayments: £222.44

Total repayment: £13,346.67

Total cost of borrowing: £3,346.67

Remember, these figures are approximate. However, they’re a clear indication of how a lower APR can significantly reduce your overall payments.

Differences between representative APR and personal APR

A representative APR is the rate advertised by lenders that’s applicable to at least 51% of successful applicants.

In essence, it means that nearly half of customers will be given a higher rate than the representative APR.

An exact or personal APR is the rate tailored to an individual’s financial circumstances. These include credit score, loan term and the lender’s own criteria. The healthier your credit score, the lower your personal APR.

What is considered a good APR for car finance in the UK?

APR varies between lenders, but a good APR for car finance in the UK is around 10.9% for a borrower with an excellent credit score.

My Car Credit offers rates from 9.9% APR and a representative rate of 10.9%. You can establish what kind of rate you might benefit from by using our car finance calculator.

Factors that influence an APR include a lender’s personal credit score, loan terms, loan amounts, type of finance, and lenders themselves.

A ‘good’ APR will therefore depend on your personal circumstances.

What’s an average APR for a first-time car buyer?

First-time car buyers often have limited credit history, which can mean they face higher APRs.

Generally, APR rates for first-time buyers range based on varying credit scores from 9% to 20%.

You can check our tips below to learn how to maximise your chances of securing a good APR.

How new and used cars affect APR

New cars often qualify for lower APRs. This is because of higher residual values, reduced lender risk and occasional manufacturer incentives.

Alternatively, used cars typically come with slightly higher APRs. This higher rate reflects lender concerns over depreciation and higher risk.

Factors that influence APR for car finance

Credit score

Your personal credit score can have a significant impact on the APR you’re offered, as lenders use it to assess your credibility as a borrower. Higher credit scores benefit from lower APR, and vice versa.

Loan amount

Generally, larger loans come with lower APRs – but exceptions do apply depending on the lender.

Loan term

Shorter loans generally have lower APRs. Longer terms increase risk for lenders and therefore have higher APRs.

Deposit amount

A larger deposit can reduce your APR – so consider a large down payment.

Lender practices

Different lenders assess and offer different rates, so it’s worth shopping around before committing to a deal.

How to get a good APR for car finance

The APR of car finance must be disclosed prior to the signing of any paperwork.

As such, comparing different lenders’ APRs is a good way of securing the best possible deal for your circumstances.

There are also steps you can take to increase your likelihood of securing a competitive APR:

Check your credit score

The higher your credit score, the more likely you are to benefit from a lower APR. There are plenty of ways to improve your credit score, including registering to vote, paying your bills on time and avoiding too many simultaneous hard credit checks.

Compare lenders

Different lenders offer different rates, and you may even be able to negotiate to lower the APR.

With a broker like My Car Credit on your side, you can benefit from the expertise and knowledge of our team to find the best APR for your circumstances. Our large panel of lenders means we may be able to reduce APR compared to other car finance companies. Use our car finance calculator to establish the kind of APR you could benefit from.

Adjust loan terms

Shorter repayment terms will have lower APRs (although you will end up paying more on your monthly repayments). You can help to reduce these repayments with a higher initial deposit.

Choose the right agreement for you

The kind of car finance you choose can impact your APR. For example, PCP finance generally has lower APRs than HP finance.

Unlocking competitive APRs with My Car Credit

At My Car Credit, we are committed to helping customers find the best rates for their personal circumstances.

As part of the UK’s largest motor finance broker, we’ve established relationships with a wide panel of trusted lenders nationwide. This improves your chances of being accepted for car finance at an APR rate you’re happy with. We may even be able to secure you a lower APR than you’ve been quoted elsewhere.

We can also help drivers with poor credit scores to secure car finance.

Use our form and apply now to get a no-obligation quote in minutes. Alternatively, get in contact with our friendly team to benefit from their professional advice.

FAQs about APR and car finance

Does a low APR guarantee the cheapest deal?

The lower the APR, the less you’ll pay in interest and other charges. Some car finance deals are advertised as 0% APR. You should investigate whether these rates are best for you, as you’ll face higher monthly repayments, and they can be difficult to secure.

What APR can I expect with bad credit?

Individuals with higher credit scores will benefit from better APRs. However, it’s more than possible to secure a rate that works for you even if your credit profile is less than healthy. My Car Credit offers poor credit car finance for individuals of all circumstances.

Can I negotiate a lower APR on car finance?

It’s possible to negotiate a lower APR on car finance, but this will depend on the lender and their criteria. Having a team like My Car Credit on your side can help you find the right deal for your circumstances and may be able to help you find lower overall rates.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Understanding How Far Back Lenders Look into Your Credit History

Tips for Car Finance Recovery After a CCJ

How to Strengthen Your Eligibility for Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

apr apr calculator car finance calculator car financing credit rating credit score Jan24

Car Loan APR Explained

Annual Percentage Rate (APR) is one of the most important factors to consider when calculating the total cost of your car loan. Whether you’re shopping for a peppy Volkswagen Golf, an eco-friendly Mini Electric or a luxurious Audi A1, understanding the intricacies of car loan APR is critical when it comes to making smart and informed financial decisions.

In this comprehensive guide, we’ll take a deep dive into APR, explain how it affects your car loan repayments, and provide handy tips on how to unlock the best deals.

Understanding car loan APR

APR stands for Annual Percentage Rate and reflects the total borrowing costs associated with the loan. It includes the interest rate you’ll pay on cash borrowed, as well as additional fees and charges imposed by the lender. The goal is to provide borrowers with a clear idea of the total cost of the loan, including fees. This transparency makes car loan APR one of the most important metrics to consider when crunching your numbers and calculating how much to borrow.

Is APR the same as interest rate?

While car loan APR does factor in interest charged on the cash amount borrowed, it also includes other fees and charges associated with the loan. This makes it a different and more comprehensive metric than a traditional cash interest rate.

Why is APR important?

Car loan APR is one of the best ways to compare loan offers quickly, easily and accurately from different lenders. As mentioned above, APR not only factors in the cash interest rate but includes additional fees and charges. It offers borrowers a glance at the total cost of the loan, expressed using an easy-to-interpret percentage rate. A low APR means you’ll pay less in interest and additional fees over the lifetime of the loan. A high APR means you’ll pay more.

What is a typical APR rate?

In the UK, a typical car loan APR rate offered by a reputable lender should sit at around 10.9% for an applicant with excellent credit. It’s important to understand that most reputable brokers and lenders use representative APR as an example. The actual percentage will vary depending on the applicant. We’ll cover representative APR in more detail below.

Fixed vs variable APR

Most auto loans in the UK come with fixed APR. This means the APR remains constant for the lifetime of the loan and monthly payments stay the same. For borrowers, this provides stability and makes it easy to budget and plan ahead. Car loans with variable APR are less common and can be difficult to manage.

Factors that can influence car loan APR

APR can vary significantly depending on the applicant. Here are a few factors that can influence what APR you’re eligible for:

Personal credit score

Your personal credit score can have a big impact on what car loan APR you are offered. Lenders use your score to assess your credibility as a borrower and calculate risk. Borrowers with high credit scores are generally rewarded with lower APR, and vice versa.

Preferred loan term

The total length of your car loan can affect your APR. Lenders typically offer lower APR for shorter loan terms. Longer terms can result in higher overall APR, though monthly payments are lower which appeals to many borrowers.

Loan amount

The total amount borrowed is another factor that can influence APR. To lower your car loan APR, consider putting together as much cash as possible for your down payment.

What is representative APR?

When researching car loans, you’ll see the term representative APR used by brokers and lenders. This is the rate that at least 51% of customers will receive. Of course, some customers will enjoy lower rates while others will receive higher rates.

Representative APR takes this fluctuation into account and offers borrowers a general idea of what to expect. Ultimately, it’s a transparent way to compare rates offered by different brokers or lenders. The bottom line? Use representative APR as a guide, not a guarantee.

How do I find out the exact APR of a car loan?

You’ll need to continue with your application to get an exact car loan APR quote. Also called a ‘real’ or ‘personal’ rate, the figure is tailored to match your unique credit profile, financial history and personal circumstances.

Ideally, brokers should be able to calculate an exact car loan APR using a soft search. This type of search doesn’t leave a permanent mark on your financial history and won’t affect your credit score or future applications.

Tips for lowering your APR

APR can have a big impact on the total cost of your car loan. So, it makes sense to be proactive when it comes to lowering your APR. Here are some strategies to help you secure the best rates:

Boost your credit score

From paying off outstanding debts to registering on the electoral role, there are a few quick and easy ways to boost your credit score.

Increase your down payment

A larger down payment can reduce the amount you need to borrow, which can help bring down your car loan APR.

Choose a shorter repayment term

While it can be tempting to stretch out your loan for as long as possible to bring down your monthly payments, opting for a shorter repayment term typically reduces APR. In the long run, you’ll pay less.

Score the best APR with My Car Credit

One of the best ways to secure a good car loan APR is to work with an experienced broker. At My Car Credit, we specialise in helping Brits secure finance on all kinds of cars, from zippy Ford Fiestas to adventure-ready Range Rovers. Whatever your budget, financial history or credit score, we can help you unlock the best possible APR from trusted lenders.

Use our handy car finance calculator to get the ball rolling, or get in touch with a friendly member of the My Car Credit team today to find out more.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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The car finance application process might not be as exciting as picking out your make, model and trim level. But trust us, it’s just as important.

Know your budget before applying

Check your credit score

Play it smart with lenders

Use credit check tools

Explore options for bad credit

Consider any additional costs

Beware the balloon payment

Work with the experts

Make sure your car finance documents are in order

Your essential checklist

How My Car Credit can help

Next steps for a smooth car finance application

Stay organised

Ask for help when you need it

Use online tools

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Save for a bigger deposit

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Be honest about your financial situation

Your next step to a stronger car finance application

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Get Personalised Support With the My Car Credit Team

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