covid-19 Archives - My Car Credit

Commuter Cars – The Future of Commuting Post Lockdown

Now that increasing numbers of people are being vaccinated, companies are starting to reconsider the return to office working. But what does this mean for commuting and commuter cars?

Well, the post lockdown commuting landscape could look different in a number of ways which are as-yet undetermined. However, it’s worth being aware of what commuting might look like in the coming months. With this in mind, you can make a decision on whether or not to keep hold of your commuting car, or make the move to other forms of public transport.

Changing peak travel on public transport

In response to the coronavirus pandemic, public transport across the UK has had to spring into action. Trains, trams, buses, and underground networks have continued to work for essential workers who’ve had to attend jobs throughout the pandemic. This has resulted in a dramatically intensified cleaning schedule so that commuters have felt and continue to feel safe.

As office workers anticipate a return to at least some in-office working, public transport will have to adapt to remain an environment that people feel safe using. The impact of changes to standard working practice have already been felt by these networks. Due to workers attempting to spread the travel time out to maintain social distancing, peak travel hours have moved from 7am to as early as 5am

Flexible working hours have also been implemented as a post lockdown work strategy. This is in order to manage rush hour on roads and public transport.

Moving away from public transport

Public transport has been a lifeline for some during the pandemic. However, Motor One reports that 76% of those who had used public transport pre-pandemic are now keen to use different methods of travel to get into work. This may result in increased commuters using personal vehicles to make their commute. The importance of a comfortable commuting car will therefore increase. Consequentially, drivers are more willing to splash extra cash on a vehicle that will get them to work in comfort – and avoid public transport.

Alternatively, commuters might avoid the perils of public transport by turning to cycling in order to get to work. This is particularly likely in larger cities like London. These are consistently undergoing huge infrastructural changes to ensure the city is as cycling-friendly as possible. Reuters reports that city planners are becoming increasingly focussed on diversifying ways of commuting. For example, introducing e-scooters to planning smart roads so as to prevent CO2 levels from soaring. If increased numbers of commuters opt to use these diverse methods of travelling to work, a commuting car will become a less important feature in these commuters’ lives.

The commuting car: downsize or upsize?

While many people are aiming to avoid public transport post-lockdown, there’s also the issue that commuting as a whole may remain at lower levels. As reported by City AM, recent research by Transport Focus has shown that commuters believe their jobs will become increasingly home-based with limited travel into offices. With a greater number of people working from home, the commuting car could become a less important feature in some workers’ lives.

It’s possible that drivers will look to downsize their vehicle as a result. After all, there’s no point in paying premium on policies or regularly upgrading your car’s model if you’re less likely to be driving it regularly.

People Management has even floated the possibility of employers lending cars. This would allow employees to travel to and from work safely if they are neither able nor willing to commute via public transport. The discussion also included the suggestion that employers provide facilities such as free parking. As a result, the commute would be less stressful for workers who choose or have to drive into work.

A note on car insurance

If you’re planning to make the move to commuting via car, don’t forget to check your car insurance policy. You need to be clear that you’re covered for commuting journeys, even if your travel is as short as driving to the nearby station.

Talk to My Car Credit today

Whether you’re looking to downsize to a fuel-efficient vehicle for commuting, or just invest in a new car so you don’t need to get public transport, My Car Credit is on hand to help. Our car finance calculator can give you a clear estimate of how much commuting car finance will cost based on the amount you want to borrow, the timeframe and a broad idea of your credit rating.

Try it today and don’t hesitate to contact our team if you have any questions at all

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

Why Are Used Car Prices Going Up?

According to an old adage, cars decrease in value as soon as you drive them off the forecourt. That’s especially true for new cars, many of which lose 40% of their value in the first year alone. But it’s also true for used cars, which generally depreciate the older they get. Or at least that was the case.

In recent weeks, we’ve seen something of a buzz in the used car trade, with prices going up following a quiet few months under lockdown. Despite the depreciation we’ve become used to, we are seeing used cars going up in value week-on-week once they’ve been bought, and it hasn’t gone unnoticed.

Rumours of used cars on driveways going up thousands of pounds in value are buzzing round the internet. Industry insiders have seen a sudden acceleration in used car prices from May 2021 onwards. But why exactly are used car prices going up? Are they going to keep going up? For many drivers, the main question will be ‘can I afford to buy a car?’ Read on as we answer all of these questions and more.

How much are used car prices going up?

For the first time since the economic recovery started in 2009, used car dealers are seeing staggering price increases in stock. Reports in Car Dealer Magazine and Auto Express, reveal used car prices rose by 6.5% in May 2021 alone, following a 2% rise in April.

“Average price increases are around 6% per month. We’ve not seen anything like it. They’re likely to be up by 6.5% in June, but they usually drop by 0.5%,” according to Derrin Martin of Cap HPI, a firm used by motor trade professionals for extensive dataset and their unique understanding of the automotive market.

He continues, “Used car prices are going up 8% over 2 months, whereas usually prices would drop by 0.5% per month. Used cars are now an investment, but we don’t know how long this unforeseen change of circumstances will last. It’s difficult to forecast what will happen next.”

Why are used car prices so high?

Used car prices are so high, partly because of lockdown. There is now pent-up demand because forecourts were closed for months and customers had limited civil freedoms to go out during the most recent lockdown of 2021. There was a similar surge in used car sales in the summer of 2020 following that lockdown.

Supply and demand economics

Not only that, but supply levels are low because of the latest lockdown, so for the first time, supply is less than the demand. This makes pricing more competitive because normally supply outweighs demand. As there are fewer cars to choose from, this makes used cars more desirable and allows vendors to increase their asking price. It’s supply and demand economics.

There were fewer new car registrations in March and April, which is likely having a knock-on effect for used car sales, as more people seek cheaper alternatives. Customers who would have bought a new car may be looking to the used car market instead.

What is the semiconductor issue?

At the same time, there is a semiconductor issue affecting the car industry. Modern cars use semiconductor chips for displays and safety systems. Leading car makers have had to scale back production because of a global lack of supply of these semiconductor chips, meaning there are fewer new cars on the market, driving up the demand for used cars.

Semiconductors are in unusually short supply because plants were closed during lockdown. Derrin Martin believes the semiconductor issue will hit harder in Q3, and dealers may switch buyers to alternative models.

Should I buy a car now?

With cars going up by hundreds or even thousands of pounds sat on driveways or forecourts, the main question for most drivers is whether they should act now and buy a car today – or stick with their existing car until it all blows over.

Well, the UK PM announced this week that the 21 June end of lockdown is to be delayed four weeks because of the increase in the Delta variant of coronavirus. There are still millions of people in the UK alone without the vaccination. Put simply, it looks like lockdown measures are here to stay. So, what does that mean for the value of used cars?

If you’re thinking “should I buy a car now?” the answer is a bit unclear. Because we truly don’t know how much longer used car prices are going to go up, you could buy now before the price goes up further. If the used car price trend continues over June to July, we could see another 6.5% increase month on month in used car value.

We cannot forecast how long the lockdown will continue, nor can we forecast how long prices will continue to increase. We are seeing used car prices increase week-one-week, so if you’re looking for a good value deal, it could be best to buy now.

Buying a car now

If you want to buy a used car before prices continue to rise, My Car Credit can help. We compare deals from our large panel of trusted lenders to find you affordable car finance, which helps you spread the cost of a new or used car.

Use our car finance calculator to see how much you can borrow or get in touch with our team for more information.

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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How Has COVID-19 Impacted Car Sales?

Since the initial UK outbreak at the start of 2020, COVID-19 has affected our lives in various ways. People have had to work from home, many have been furloughed or even lost their jobs, and we’ve all had to adapt to a more remote way of living.

Needless to say, this has had some direct and knock-on effects for car sales, as this post will explore.

The direct impact on car sales

The initial impact of COVID-19 on car sales came through the forced closure of dealerships. In the first lockdown, imposed from 24^th March 2020 onwards, dealerships were deemed non-essential and forced to close. This brought car sales to a halt, with many dealerships not prepared for non-contact and online sales.

Over time, car sellers have adapted their processes so they can provide plenty of information online and offer click and collect services or deliver cars to customers’ homes. That minimised the impact of following lockdowns, including the national one imposed at the start of 2021.

Knock-on effects of COVID-19

While the ability to buy cars and apply for finance from the comfort of your home has minimised the direct impact of COVID-19 on car sales, there have also been some indirect effects.

People being furloughed or losing work has naturally led to fewer people being able to afford a new car – or at the very least, they’re looking at more affordable cars.

Some borrowers may have been forced to miss payments or make late repayments on their loans, which will have a knock-on effect for their credit score. Fortunately, some providers have offered ‘holidays’ on loan and mortgage repayments, which has minimised the impact on those who have been affected – at least in the short term.

Post-COVID car finance

If you’ve been left with a poor credit score in the wake of COVID-19, My Car Credit is on hand to help. We provide car finance for poor credit score applicants, so you can still spread the cost of a new or used car. To find out more, email enquiries@mycarcredit.co.uk or call us on 01246 458 810.

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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Should I Start Driving Lessons During or After COVID?

young woman taking driving lessons during covid

The COVID-19 pandemic has affected almost every aspect of our lives. Things are no different for those learning to drive, many of whom have put their plans on hold for the time-being or even had lessons and tests cancelled.

The good news is, there is a light at the end of the tunnel. December saw the first doses of the Pfizer vaccine administered, which means we can start to get our lives back on track in 2021.

However, for those who have stopped their driving lessons or are yet to have their first, the question still remains – should you start or restart your lessons during COVID or wait until everything is completely back to normal?

Are you allowed to take driving lessons during COVID?

The first consideration is simply whether you’re allowed to take driving lessons and the eventual test in light of the current COVID tiered system. From 2^nd December, the government put around 99% of the population of England into tier 2 or 3 – the highest level of restrictions.

Fortunately, the Driver & Vehicle Standards Agency (DVSA) confirmed they would be resuming all lessons and tests, including theory and practical, from 2^nd-3^rd December. Of course, things have been changing at a rapid pace over the last year, so it’s always worth checking local regulations to see whether driving lessons and tests are still permitted.

Making driving lessons COVID-safe

If you do choose to start or restart your lessons, it’s worth considering the precautions you can take to minimise the risk of transmission. In Scotland, it’s mandatory for both pupils and instructors to wear a face covering during driving lessons. While that’s not specifically outlined for the rest of the UK, it’s certainly recommended.

According to the DVSA guidelines, all candidates will need to wear a face covering for their test. Refusal to wear one without exceptional circumstances being pre-notified and agreed upon could result in the test being cancelled.

All of the other COVID car sharing advice still applies too. This includes ventilating the car by keeping windows open, avoiding contact with people from other households and washing your hands before and after any lessons. It goes without saying that you should cancel or postpone your lesson if you’re self-isolating after a positive test or experiencing symptoms without yet receiving a negative result.

Start now or wait?

Ultimately, the decision of whether to take driving lessons during COVID is down to you. With the second wave past its peak in most areas and the vaccine slowly being rolled out, it’s much less likely that tests will be cancelled and lessons put on hold again in the coming months. However, for some, the unease of wearing a mask while doing something you’re already quite nervous about, could be enough to put you off.

It’s worth bearing in mind that, even though the vaccine is being administered, measures like face masks and social distancing could remain in place for the foreseeable future. With that in mind, it might be better to bite the bullet and take some lessons rather than holding off for months on end.

Planning ahead

Buying your first car might seem a world away when you’re taking lessons and tests during COVID or otherwise. However, it doesn’t do any harm to plan ahead and get a better idea of what kind of car you’ll be able to buy.

At My Car Credit, we make it much easier to get your first set of wheels, with fast and fair car finance from over 27 trusted lenders. Using our car finance calculator, you can get a clear idea of how much you can borrow and what it would cost, so you’ll be ready to spread the cost of your first car once you’ve passed your test.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Bank Loan or PCP: Which is Right for You?

How Does PCP Work at the End of the Term?

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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How to Car Share Safely: COVID Rules & Precautions

Car sharing is a common practice for people who want to minimise the cost, hassle and emissions involved in getting to and from work. However, with COVID-19 social distancing restrictions advising no contact with people from other households, there are several questions raised about whether it’s still an option.

In this post, we’ll discuss the rules around car sharing and how to make it as safe as possible.

Is car sharing allowed?

First and foremost, car sharing is still allowed during the current COVID-19 restrictions depending on the tier you’re in and why you’re sharing a car. In tier 1 areas, the government recommends avoiding car sharing with anyone outside your household or support bubble wherever possible, to reduce the risk of spreading the virus.

However, in tier 2 and tier 3 areas which make up the majority of England, car sharing is not permitted with people outside your household or support bubble unless there is an exempt reason. Fortunately, this includes car sharing “for work or providing voluntary or charitable services.”

Gov.uk highlights car sharing being “reasonably necessary as part of your work”, as an example of an exempt reason. In other words, if it’s unreasonable to walk or cycle to work, or work from home – and car sharing would avoid crowded public transport – then it’s reasonable to share a car as long as you take precautions.

All that said, it’s important to note that you shouldn’t share a car for any reason, in any tier, if you’re self-isolating after a positive test or experiencing COVID-19 symptoms without having tested negative.

COVID car sharing precautions

If you have a valid reason for car sharing, the Government has highlighted a number of measures you can take to minimise the risk of transmission while travelling.

Share with the same people

Firstly, if you need to share for work or another reasonable purpose, try to share with the same people each time. This will reduce the number of people you’re mixing with and minimise the chance of being exposed to the virus.

Cover your face

You should also wear a face covering whenever possible. Respiratory droplets are the most common way the virus is spread, and face coverings are a simple and effective way to stop them spreading when you speak, shout, sing, cough or sneeze. Needless to say, you should avoid shouting or singing when car sharing too.

Keep the car ventilated

When travelling, you should keep the car windows open and face away from each other. This will keep the space well ventilated, allowing any airborne infection to escape the vehicle. Facing away from each other simply means any respiratory droplets will have a harder time moving from person to person.

Avoid touching

Once you’re inside the car, avoid touching things wherever possible. You should also avoid touching any other people unless they are in your support bubble. With that in mind, it’s best to minimise the number of people in a car when sharing, so they can still maintain a decent distance. Having someone in the driving seat and a passenger in the back, left passenger seat will keep them as distanced as possible.

Wash your hands

Using your hands is unavoidable when car sharing. You’ll need to open the door and put on your seatbelt as a minimum. This is why washing your hands is still very important. You should wash your hands using the 20 second guidance before and after every journey.

Clean the car

If it’s your car being used for journeys, make sure you clean it after every use. You’ll need to use an effective household disinfectant and a clean cloth, making sure you clean key areas such as:

Door handles – inside and outside
Wheel and dashboard
Seats and everything around them including seat belts
All storage areas like the glove box, central storage compartment and cupholders

Plan your route

As well as the COVID car sharing advice above, the general rules for travelling during the pandemic still apply. This includes planning your route to avoid any disruption when travelling.

Road works, road closures, accidents and stand-still traffic will all lengthen the time you’re sharing a car with someone outside your household or support bubble. By planning ahead, you may be able to avoid these with an alternative route and minimise the journey’s duration.

You should also avoid making stops wherever possible, driving directly to and from the destination like your workplace.

What about breakdowns?

With any car journey comes the risk of a breakdown. If this happens while you’re car sharing, it’s important that you don’t compromise the precautions you’ve already taken. While it may be tempting during something as stressful as a breakdown, try to avoid close contact with other passengers.

By this point, mechanics and break-down teams are all well-versed on social distancing and COVID-safety. However, it’s also important that you act safely to protect them. Keep some hand sanitiser in your car so you can wash your hands before and after they’ve been.

You should also wear a mask while interacting with them. Many drivers won’t feel comfortable or safe driving with a mask – because of glasses steaming up, for example. But this highlights why it’s important to still have one on hand in your glove compartment.

Car sharing made easier

When you’re car sharing during the COVID-19 pandemic, you’ll want to avoid delays, hiccups and breakdowns more than ever before. If you’re worried your car isn’t up to scratch, social distancing isn’t standing in your way of a replacement.

At My Car Credit, we draw upon a panel of 27 trusted lenders to find you a great car finance deal without the need for face-to-face meetings. Our online application process is quick, easy and completely remote, so you can still upgrade your car during the pandemic.

Use our car finance calculator to get a better idea of your options or contact our team for more information.

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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Car Finance Companies Switching to Online Applications

person using laptop to make online finance applications with car finance companies

Evolution Funding, the largest motor finance broker in the UK, has published record online car finance applications, boosting its year-on-year average by 95%. The sharp incline for car finance companies is believed to be due to the impact of COVID-19, with one in four motorists saying they are prepared to buy a car online without seeing it first*.

The figures are great news for car finance firms who were expected to be hit hard by the impacts of the latest global health pandemic. However, as the statistics highlight, consumers appear more than willing to apply to serve themselves online before completing the final details in-person.

Evolution group sales director, Chris Coverdale, believes that this kind of trading will “become the norm as social distancing measures continue and consumer behaviour adapts.” Evolution’s online proposals as a percentage of overall proposals was 32%, compared to 21% in 2019**.

What led to the switch?

While the Coronavirus pandemic has accelerated the growth of online finance applications for car finance companies, it isn’t the only factor to affect the sector.

Ian Plummer, commercial director of Auto Trader, confirmed that “there’s been a broad digital acceleration from all parts of the automotive landscape.” Still, the tools were already in place, with Evolution Funding reporting a 27% increase in proposals through their online finance calculator.

Also, the Financial Conduct Authority confirmed in April that the payment holiday for finance and lease customers would be extended by three months.

With the car finance industry frozen since the start of the lockdown, and only recently reopening, call volumes have skyrocketed by 200% as shoppers and existing customers seek assurances in unpredictable times.

Of course, the effects of COVID-19 are still visible. Only 145,377 new car registrations were recorded in June 2020, a 35% decrease from the previous year.

* Source: AM Online
** Source: Motor Finance Online

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Will I Get Accepted for Car Finance?

How Many Years in a Car Loan Term?

I want to buy a car on finance, how much can I borrow?

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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Advice for Extending Your Car Finance Payment Holiday

man worried about extending his car finance holiday

The COVID-19 pandemic has put financial stress on millions of Brits across the country, with unemployment benefit claims recently jumping to the highest levels in more than 20 years. As a result, the Financial Conduct Authority (FCA) has been rolling out a wave of relief packages, including payment holidays on car finance.

The scheme kicked off in March and was recently extended until October 31, offering Brits the option to defer more than six months’ worth of repayments. Read on for some advice on how the extended payment holiday works and whether you should take one.

Hugely popular scheme

As the name suggests, the car finance payment holiday allows you to take a break on payments for your car finance agreement. “If you’ve a car loan, PCP, leasing or HP deal and are struggling to pay due to coronavirus, you can get a new or extended three month payment holidays on request,” explains Martin Lewis, founder of consumer finance information website MoneySavingExpert. “They can’t repossess cars for non-payment until October 31.”

The latest data from lenders’ trade body UK Finance confirms the scheme has been hugely popular, with more than 1.9 million Brits taking advantage of payment holidays for mortgages alone. While the package is a blessing for Brits struggling to repay loans, experts stress caution should be used when deciding whether to apply for a car finance payment holiday.

A credit file footprint

The COVID-19 pandemic may have reimagined the lending landscape but that doesn’t mean your credit file will remain unaffected. While the Chancellor and FCA have confirmed car finance holidays won’t show up on your credit file, lenders can still find out if you’ve applied for deferrals and use this to negatively assess your application.

This can be done by sourcing information via a third party or looking for inconsistencies in your payment history. The FCA has confirmed this is legal and has even warned consumers about the potentially negative impacts of payment holidays. So, while a little relief in the short term is tempting, a payment holiday could impact your chances of securing loans in the future.

“If you NEED one, take it, but ONLY take it if you need it,” stresses Lewis.

Deferral, not holiday

While the scheme is marketed as a payment holiday this term can be deceiving. Holiday implies a carefree system where borrowers can forget about a payment. In reality, payments are simply deferred and can result in larger debts when the car finance holiday is over.

Factoring in interest

The option to defer payments will be hugely helpful for some. However, for those who can afford to continue paying, the advice is to do so. Excluding payday loan holidays, interest isn’t frozen and will continue to accumulate over the course of the car finance payment holiday.

Usually, repayments lower the total amount owed and gradually bring down the interest. By freezing payments you’re not lowering the total amount and as a result, interest starts to climb, and the loan will cost you more in the long run.

Car finance payment holidays have provided much-needed relief to many Brits during the COVID-19 pandemic but at the same time, they’ve also tempted many borrowers who don’t need assistance. Before applying, the best thing to do is crunch the numbers, talk to your lender and make an educated decision about whether a car finance holiday is the right decision for you. If you’re in trouble, the National Debtline is a fantastic resource.

How we can help

Whether you’re in need of a payment holiday or you’re looking to upgrade your car as things get back up and running, the team at My Car Credit is here to help. Get in touch with our team to discuss your requirements in more depth.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

7 Advantages of Used Car Hire Purchase

8 Advantages and Disadvantages of a Balloon Payment

Car Finance vs Personal Loan, what’s best for me?

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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COVID Breakdown Advice: 5 Tips for Roadside Social Distancing

woman calling for breakdown advice at roadside

While restrictions may be relaxing, the coronavirus pandemic is still a very real risk in the UK. It’s never been more important to maintain social distancing and practice good hygiene in all scenarios, including breakdowns.

That’s especially true when many of us are driving cars that are a bit out of practice with weeks of staying home. Not to mention the Government’s extension of MOTs due since lockdown began.

Of course, keeping your distance isn’t always as easy as it sounds. Especially in an emergency or a stressful situation such as a breakdown. So, what should you do if you find yourself high and dry

We’ve put together some handy tips on how to get the help you need, without compromising your personal safety or breaching social distancing rules.

1. Always travel with a mask

While it’s not mandatory to wear a mask in public, stashing one in your glovebox is one of the easiest ways to ramp up protection if you find yourself in a breakdown scenario. If you need to be towed it’s possible you’ll have to catch a ride with the driver or take a taxi home.

If this happens a mask can help to prevent the risk of contracting or spreading COVID-19 in a small enclosed space. If you are offered a ride, try to sit in the back seat if possible and roll down the windows. It may seem strange, but these are unprecedented times and safety should always be a top priority.

2. Use hand sanitiser

Need to sign documents from the RAC or call a tow truck from the petrol station? A quick squirt of hand sanitiser before and after you touch anything another person has come into contact with can make a huge difference when it comes keeping COVID-19 at bay.

3. Deep clean when you get home

Whether it’s a flat tyre that can be fixed in a matter of minutes or a blown gasket that calls for several days at the garage, giving your car a deep clean when it arrives back in your driveway is a must.

If possible, avoid driving or cleaning the car immediately as research suggests COVID-19 can live on surfaces such as stainless steel for up to seven days. When it is time to clean, be sure to use PPE such as a face mask, gloves and an apron to avoid picking up any surviving remnants.

4. Keep your distance

It’s likely you’ll need to chat to the mechanic or tow truck driver, but this doesn’t mean you have to get too close for comfort. As always, try to keep at least 2 metres apart and avoid shaking hands, using the same pen or standing too close while the expert is taking a look at your ride. Interactions should be as quick as possible. If you have non-urgent questions, consider firing them through later in an email or text.

5. Upgrade your car

Okay, maybe not a social distancing tip per-se. But upgrading your car is a great way to avoid the stress – and close proximity – of a breakdown. Best of all, it doesn’t have to cost the world up front. My Car Credit helps everyday drivers secure finance for new cars that are safe and reliable.

Calculate car finance and start your application today without any hassle or delays.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Advantages and Disadvantages of PCP Car Finance

What is the Oldest Car a Bank Will Finance?

How Many Years in a Car Loan Term?

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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Driving After Lockdown: Staying Safe After COVID-19

steering wheel of someone driving after lockdown

There’s no denying that COVID-19 disrupted almost every aspect of modern life, from how we work to how we shop. Lockdown had millions of Britons working from home, while many others were furloughed. The restriction on work and social lives meant that there was a significant reduction of vehicles on the road.

Since June, the government has pared back lockdown and is gradually reducing restrictions. Many of us are heading back to work and we can begin to visit family and friends again, while maintaining social distancing, of course.

With the surge of motorists back on the road, it’s incredibly important to be more diligent while driving. If you are getting behind the wheel for the first time in several weeks, take a look at our top tips on how to drive safely.

1. Prepare your vehicle

Your car may have been sitting for weeks on end. Before you head out on the roads, ensure that it is roadworthy. After a long period of inactivity, it’s possible your car’s battery will be flat. Inspect the tyres, ensuring the correct air pressure and that there are no cracks in the sidewalls.

Check the engine oil, lights and top up the fluids before setting off. When you need to top your car up with fuel, ensure that you are wearing gloves when handling the pump and paying.

2. Clean and disinfect

Whether you’re heading back to work, popping out to the shops or dropping off goods to vulnerable family members, your car needs to be kept clean and disinfected. Since the coronavirus can live on surfaces for up to 72 hours, it’s wise to ensure your vehicle is not a carrier of these harmful germs.

Wear appropriate personal protective equipment (PPE) to minimise the chance of coming into contact with the coronavirus. Wear gloves, a mask and an apron that are either washable or disposable.

Start by cleaning your vehicle by removing dirt, dust and debris from the interior. Next, use a disinfectant to spray over the dashboard, steering wheel, gearbox, handles, buttons, seat belts and visors. Wipe down with a clean microfibre cloth that is immediately put into the washing machine. Don’t forget to clean the interior and exterior door handles as well as the boot handle.

3. Plan ahead

Before setting off, plan a route to get to your destination. Be aware that certain road conditions may have changed in the last few weeks and there could be temporary closures and delays.

4. Slow down

There may be fewer cars than normal on the roads, which make it tempting to speed to shorten your journey. However, speeding is never the answer. Stick to the speed limits or below, especially as you get used to being behind the wheel if you haven’t driven in a while.

5. Carry hand sanitiser

Washing our hands is just as important as it was before to slow the spread of the coronavirus. However, not everyone has access to soap and water when they are out and about. Instead, many resort to the next best option – hand sanitiser.

Keep a bottle of hand sanitiser in your vehicle that is at least 60 percent alcohol to use before leaving the vehicle and upon returning. Keep the bottle out of direct sunlight as the heat could reduce its effectiveness and turn it into a potential fire hazard.

A new vehicle for your new needs

If you find yourself using your car more often or less frequently after lockdown, or if it’s just looking worse for wear, it may be time to upgrade your vehicle.

At My Car Credit, we can help you secure the right car finance that suits your needs and budget. We are operating business as usual and are ready to help you today. Calculate car finance and then apply to get started.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Check for car finance without affecting your credit score

PCP Finance Explained – Personal Contract Purchase Guide

Can You Modify a Car on HP 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

coronavirus covid-19 driving tips lockdown

10 of the Best Locations for UK Staycations in 2020

boy jumping river whilst on a staycation in uk

While some countries begin to open their borders, most remain shut or subject to restrictions that promise to make travelling a far less relaxing affair. Unfortunately, holiday-goers can expect much more than lengthy check-in queues, mandatory face masks and temperature scans. Travel experts also anticipate an increase in ticket prices while airlines get back on their feet.

However, it's not all doom and gloom. Perhaps, in a socially distanced post-COVID-19 world, we simply need to reimagine the holiday experience by skipping trips and opting for UK staycations instead. As well as saving on stress, exploring the beauty on your doorstep is a great way to support local businesses that have been devastated by the lockdown.

To help you choose the right destination, we’ve compiled a list of the best staycations across the UK.

North West of England

1. Cumbria

man standing on skafell pike in the lake district — Photo credit: www.instagram.com/thevisualiza

Predominantly rural and framed by rugged mountains, awe-inspiring lakes and undisturbed coastlines, Cumbria is the perfect location to escape the hustle and bustle of everyday life.

Nature lovers will be in their element as the county possesses some of the UK’s most breath-taking areas of natural beauty, including the Lake District (a UNESCO World Heritage Site), Eden Valley and part of the North Pennines.

The Lake District, in particular, provides a plethora of activities for adventure aficionados. The glacial pools and fell peaks are perfect for abseiling, mountain biking, bush-craft, archery and more.

2. Blackpool

Gaudy, glitzy and great fun, Blackpool epitomises the traditional UK staycation and, with an excess of award-winning attractions, there’s something to entertain the whole family.

Thrill-seekers can enjoy the Blackpool Tower Dungeons or iconic Pleasure Beach, which stays true to its roots with vintage wooden roller coasters, winding promenades and glamorous shows featuring plenty of feather boas. For something less adrenaline-spiking, there’s SEALIFE, Blackpool Zoo or the world-famous Blackpool Tower.

East of England

3. Norfolk

With an abundance of beautiful countryside, market towns and seaside resorts, Norfolk is the best choice for longer staycations.

Take your time as you explore 90 miles of flawless coastline and internationally famous nature reserves including Broads National Park, often described as “England’s watery jewel”. Thanks to the Broads’ open network of waterways, rivers and lakes, you can navigate the landscape by boat while enjoying the company of cranes, Kingfishers and otters.

After drinking in the region’s scenic delights, head to Great Yarmouth or Cromer for some of the country’s most delicious fish and chips.

4. Cambridgeshire

Cambridgeshire combines wetlands, cathedral towns and medieval markets with some of the best restaurant, shopping and cultural experiences in the UK. When visiting, most people choose accommodation in Cambridge itself, which is an excellent base for exploring the city as well as the surrounding areas.

The choice of activities on offer is indulgent – art galleries, perhaps one of the best theatre scenes in the country, live music every night and several Michelin star restaurants. Plus, there’s an established festival scene which includes the Cambridge Folk Festival and Strawberry Fair.

Oh, and there’s punting – lots and lots of punting.

South West of England

5. Cornwall

Cornwall is proof you don’t need to travel to far-flung locations to experience something otherworldly. In fact, the county’s beaches are unrivalled for their beauty, standing their own against France’s Île de Porquerolles and Italy’s Cala Tonnarella.

Perranporth and Godrevy on the north coast are surfing havens while the south coast offers more favourable conditions for sailing. Romantics might prefer the secluded beaches of Harlyn and Kynance while the bustling seaside town of St Ives has plenty of restaurants, bars and galleries to peruse.

6. Devon

The miles upon miles of coastal walks and sweeping rural landscape makes Devon an especially attractive choice for hikers. One of the most popular activities is traversing The English Riviera, a 22-mile stretch of exceptional South Devon coastline peppered with harbour towns (including Torquay, Paignton and Brixham), rugged bays and quaint villages. For something wilder, there’s the Jurassic Coast (a UNESCO World Heritage Site), overflowing with fossils and alien-like rock structures.

Elsewhere in the UK

In light of COVID-19, it’s best to check with regional visitor centres before travelling to the following areas.

Wales

7. Snowdonia

Glacial landforms, steep river gorges and powerful waterfalls grace Snowdonia, a region in northwest Wales that’s concentrated around the Snowdonia National Park.

People flock from all over to enjoy the area’s spectacular beauty, and there’s a smorgasbord of activities on offer including mountain biking, cave exploring, sailing and fishing. For those adverse to heights and water, roam the mighty oak, ash and hazel woodlands by horseback instead.

Thanks to the Snowdon Mountain Railway, this is also a very special place for train watchers. Nearly 12 million people have taken a trip to Snowdon’s summit on the famous locomotives since 1896.

Scotland

8. Edinburgh

Scotland’s capital is one of the most memorable cities in Europe, its charm accentuated by crofts, castles and winding cobbled streets. There are two distinct parts – the Old Town and New Town.

The Old Town is the city’s historic heart, home to Edinburgh Castle. The New Town, equally as impressive, enchants with cocktail bars, restaurants and a fabulous nightlife scene.

Wherever you decide to stay, you’re never far from cultural celebrations. There are galleries, museums, castles, theatre performances and, of course, plenty of whisky pubs. Festivals are another highlight, though the famous Edinburgh Fringe has been postponed until 2021.

Northern Ireland

9. County Antrim

County Antrim possesses the kind of scenery you read about in fairy-tales. The Glens are especially striking, comprising nine long and gently sloping valleys radiating from the Antrim Plateau to the coast.

They each offer a wildly different adventure. One minute, you’re standing under waterfalls and trailing a sheer plunging gorge, the next you’re swept up in a flurry of music, dance and craic.

Then, there’s the Giant’s Causeway (a UNESCO World Heritage Site), flanked by the North Atlantic Ocean and startling cliffs. Steeped in history, this wild and often moody land fascinates tourists with stories of mythical giants and gruesome battles.

East Midlands

10. Derbyshire

We couldn’t write an article on the best UK staycations without a mention of My Car Credit’s own location, Derbyshire! We’re lucky to sit right on the borders of the beautiful Peak District, situated at the southern end of the Pennines. Enjoy jaw-dropping views across rolling hills and expansive valleys surrounded by impressive rock formations. The Peaks are a hidden gem that often get overlooked.

As well as enjoying the countryside, the Peak District boasts many quaint villages including Buxton and Matlock Bath, Castleton (with its show caves), and Bakewell, the national park’s only town (don’t forget to pick up a proper Bakewell Tart). There is also Chatsworth House, which is well worth a visit. They often put on events, from country shows to an international horse trials.

Finally, be sure to stop by Chesterfield’s ‘Crooked Spire’, which folklore suggests the Devil is responsible for twisting!

Make travelling easy

With so many incredible destinations to visit across the UK, perhaps it’s time to upgrade your wheels or purchase the car of your dreams? That’s where My Car Credit can help. We offer quick, hassle-free car finance for drivers across the UK.

To find out more, call us on 01246 458 810 or drop us an email at enquiries@mycarcredit.co.uk. One of our specialists will get back to you as soon as possible.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Do Car Finance Calculators Work?

Who is the Legal Owner of a Car on Finance?

Can You Get Cars on HP with No Deposit?

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

coronavirus covid-19 staycations uk holidays uk staycations

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