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Car Finance Deals Explained

The Car Loan Warehouse, where customers get the best car finance deals. As a broker we are able to compare 100s of car finance products.

Our experienced team of advisors will provide each and every customer individual advice to suit their requirements.

Quick & Simple Car Finance

With an enormous range of class-leading cars available on finance in the UK, the world is your oyster – and by doing your research, you can find the very best car finance deals out there to drive the model you want at an affordable monthly rate.

At The Car Loan Warehouse, we offer a wide range of car finance deals – and we’re practically guaranteed to be able to find you a great car finance deal. Ready to buy? Simply apply now for a free, no obligation finance decision or try out our quick and easy car finance calculator for an instant estimate.

Professional advice

If you’d like the concept of car finance explained, you’ve come to the right place. Today, we’re breaking down the complex world of car loans so that you can make an informed decision and get the keys to your dream car as soon as possible!

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Our experts are always ready to help

How does car finance work?

Car Finance Explained

If you’re considering buying a new set of wheels but wondering how to get a car on finance, we can help. If you’d prefer to pay monthly, cars on finance are the perfect way to drive your dream car without shelling out on the up-front price – with a series of affordable monthly repayments built for your budget.

Whichever model has caught your eye and however long you need to pay back the loan, you can tailor your deal to suit your circumstances and pay as you go. Car finance is the quickest way to find the funds for your next ride – and best of all, the application process couldn’t be easier!

Here’s how it works:

  1. Use the online car finance calculator for an instant quote
  2. Apply for car finance deals online via our quick and easy application form
  3. Get approved and choose your model, via dealership or private seller
  4. Receive your funds and drive away the same day

It’s as simple as that. In the same day, you could have the funds to finance your ideal model – and, thanks to the vast selection of lenders we work with, you’re guaranteed to find the best car finance deals available.

Are there different types of car finance?

We know that no two drivers are looking for the same thing out of their car finance – and luckily, there are a number of flexible options available to make sure every applicant finds their perfect fit. Understanding the different types of car finance is the key to picking a payment structure that suits you – and depending on your financial situation, the range of car finance models offer a unique set of benefits.

Hire Purchase: the no-nonsense option. Buying a car via Hire Purchase involves making monthly repayments on your model of choice over a pre-agreed period – and once your payments are complete, the car is yours to keep! This is an ideal structure when it comes to car finance for bad credit holders, as the loan is secured against the value of the car – and, in some cases, there’s no deposit required.

Personal Contract Purchase: a particularly popular option, PCP car finance involves a smaller initial deposit than the alternatives, while still consisting of an ongoing monthly payment plan. At the end of the agreement, you have the option to return the vehicle or make a final balloon payment and hold onto the car.

Unsecured loans: with unsecured car finance, an applicant’s credit rating is of great importance – as their financial history is used as an indication of the ‘risk’ involved in offering them a finance deal. Bad credit holders may find that they’re refused car finance when applying for an unsecured loan.

Applying for car finance deals online

Online Car Finance

If you’re looking to move forward as quickly as possible, arranging your car finance online could be the best way to go. The speed and convenience offered by this approach takes the hassle out of buying your new car – meaning you can get out on the road sooner rather than later.

Car finance calculators help you get an instant estimate on your loan by selecting how much you’d like to borrow and your preferred repayment period. These nifty online tools make it easy to assess your options, giving you an accurate estimate on your car loan within a matter of seconds.

As well as having immediate access to car loan quotes, applying online gives you an opportunity to compare car finance deals on the hunt for a plan that’s perfect for you. If you’re looking for car finance with no deposit required, pitting providers against each other puts the power in your hands – so you can compare car loans from the comfort of your own home and identify the option that best suits your circumstances.

Better yet, by applying with a car finance broker, you can enjoy access to a huge list of lenders to give yourself the greatest chance of approval. This online application process makes it easier than ever to find the best deal – as you leave the hard work to the finance experts. And with a decision guaranteed within the hour, online car finance is the fastest way to fund your next set of wheels.

Finding the best car finance deals

Looking for cheap car finance? Exploring the market is the ultimate way to guarantee you’re getting the best deal on offer – with lender criteria varying significantly from one site to the next. Car finance brokers bring together a number of different lenders so that drivers are matched with competitive deals they can comfortably afford.

When it comes to buying a new car, finance deals offer an affordable alternative to forking out on the up-front price tag – but it’s still important to check out a range of providers to find the best car loan rates you can. With many lenders willing to overlook an imperfect credit history, new car finance can be a reality even for bad credit holders.

In order to find the best car finance deals, you need to understand the additional costs involved. From APR to flat rate interest, there are extra costs associated with car finance – and these depend entirely upon the amount you’re looking to borrow, the length of your repayment plan and your circumstances.

Flat rate vs APR:

  • Flat rate interest: this works out as an annual percentage and is charged over the total amount you borrow. So, if you’re borrowing £20,000 over 4 years at a flat rate interest of 10%, you’ll be required to repay the full £20k as well as an additional 10% once your agreement is over. In this scenario, 10% of the total loan amount makes for £2000 per each year of your car finance agreement – meaning the complete amount to be repaid is £28,000
  • Annual Percentage Rate (APR): this is the sum of all additional costs to be paid on top of your loan – including the flat rate interest. So, if you’re paying an extra £400 each year on a £20k car loan, this works out as 2% of the overall loan amount. Combined with flat rate interest of 10%, your APR = 12%

Does bad credit car finance exist?

There’s no doubt that your car finance options can be limited with a credit history that’s less than perfect – car loan rates can be significantly higher and, in many cases, application approval is hard to find. Thankfully, bad credit car finance does exist – as many lenders are happy to approve poor credit holders regardless of their financial past, with no deposit required in many cases.

Whatever’s affecting your credit rating, there are still ways to find a good deal:

  • CCJs: a County Court Judgment can be a deal-breaker for many car loan providers – with unpaid CCJs staying on your credit file for six years and potentially having a detrimental impact on your ability to secure credit. But even with a CCJ, car finance can still be yours thanks to the number of lenders willing to overlook past mistakes
  • Bankruptcy: after declaring bankruptcy, a record of this event will remain in your credit report for a minimum of six years and you’ll be required to share this information with lenders on loans over £500. Car loans for bankrupts do exist, though, and credit-builder cards can be a great way to undo some of the damage
  • Refused car finance: when a loan application has been rejected, it’s helpful to contact the lender for more information. Continuing to make successive applications without working to improve your credit rating can further impact your score – so if you’ve been refused car finance, the key is to take small but gradual steps in the right direction

Wondering what’s dragging your credit score down? Head to Experian to take a look at the factors that influence your rating.

Lenders across the UK offer car finance for bad credit holders – and by applying with a leading car finance broker, you can have access to a massive selection of lenders and increase your chances of finding a perfect match.

Bad credit car loans are often harder to obtain, but widening your net is the ultimate way to find deals subject to your status. No two applicants are the same, and this is also true of lenders – with each car finance provider offering loans based on a unique set of requirements.

If you’ve been refused car finance in the past, there’s hope for you yet. With Noddle, you can apply for a free credit check online and take the first step towards saving your score.

Haunted by your credit history? Find out more about our bad credit car finance.

Guaranteed car finance

The idea of ‘guaranteed car finance’ is a widespread myth in the world of car loans. Offering guaranteed acceptance is illegal, as every loan is subject to the individual lender’s criteria.

A number of car loan companies advertise what they describe as guaranteed car finance when, in fact, acceptance rates are substantially lower than 100%. To avoid being refused car finance, make sure to read the small print and assess what’s actually on offer – rather than opting in under false pretenses.

Car finance brokers work with a diverse range of lenders to provide the greatest chance of approval and the best rates available – but there are no guarantees, and what makes the most desirable applicant varies from one lender to another.

To find out more, head straight to our guaranteed car finance page.

Used car finance

Used Car Finance

Used car finance deals allow you to explore a range of previously loved vehicles across the UK. With a huge number of pre-owned models in peak condition and available for a discounted price, finding the best used car finance deals can be your ticket to getting the car of your dreams at a rate you can afford.

Buying used cars on finance is easy: find the model you want, via dealership or private seller, then submit your application. A car finance expert will get back to you with a decision in 60 minutes or less and you could drive away the same day. Alternatively, if you’d prefer to secure finance first and browse the market for your ideal model, you can do that too.

Naturally, it’s important to know all the facts before you commit to buying a used car, as depreciation rates, maintenance costs and reliability are all critical factors when it comes to making a worthwhile investment. Particularly when dealing with private sellers, it’s crucial to ask the right questions to give yourself complete peace of mind:

  • Are they the car’s first owner? If not, do they have information on its previous owner and the date of purchase?
  • Why are they selling the car?
  • Has the car been involved in any road accidents – and if so, can they describe the extent of the damage?
  • Are there any existing mechanical issues?
  • Where was the car serviced, and do they have the maintenance records on-hand?
  • What is the car’s current mileage?
  • Do they have the title for the car?

Find out more about the ins and outs of used car finance.

If you’d like to invest in a vintage model, classic car finance is the ideal option for you. With a number of iconic models for sale right now, and loans available from £3000 to £750,000, any retro car lover can find a repayment plan that suits their circumstances.

Our customers are even able to finance a classic car via an auction house, if agreed prior to the event. That way, you can get your hands on a vintage beauty with the knowledge that your finance is already in place.

To explore your options, go straight to our classic car finance page.

Which other kinds of vehicle finance are there?

If you need some new wheels but aren’t looking to invest in a car, there are a range of other vehicle finance options available. With competitive loans on a number of diverse models, you can apply online and climb inside your brand new ride the same day.

Whether you need a van for work or personal use, online van finance gives you a chance to drive the model you want at a monthly rate you can afford – with loans from £2500 to £50,000. From the popular Ford Transit to the flexible Fiat Ducato, a huge range of class-leading panel vans, pickups and chassis cabs are available via van finance – so you can avoid the hefty up-front price and get on the road in your new vehicle as quickly as possible.

Need a new bike but struggling to find the funds? With motorbike finance, you can borrow between £2500 and £100,000 and get your hands on the model of your choice without having to pay up-front. It doesn’t matter whether you’re on the hunt for a reliable moped or a locked and loaded superbike – motorcycle finance makes it easy to ride the model you want, with loans available regardless of your circumstances.

Are you ready to get behind the wheel of your next car? Explore your options today and the experts at The Car Loan Warehouse can make your dream drive a reality.

Head over to our car finance calculator for an instant quote – or apply for car finance deals online right now to get started.

Spread The Cost

Spread The Cost

Monthly Payment £0
Total Repayable £0
(7.9% APR illustration)
Apply Now
Rates may vary depending on loan amount and individual circumstances. Subject to status.