Car Finance Explained

The simple way to upgrade your car.

All About Car Finance
  • Get a decision within minutes
  • Find a deal that fully suits you
  • Apply online and let us help you
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How does car financing work?

The very first step is to decide how much money you want to borrow and can actually afford, based on your current income and spendings. Our Car Finance Calculator, which you will find further below, can help you work this out.

Next, based on your capabilities and needs, choose the new or used vehicle you want to finance. Once you’ve sorted out all the basics, get a quote with us! This will, in no way, impact your credit score.

Once we’ve found the right deal for you and your application is accepted, our customer service team makes sure you get your car as quickly as possible.

What types of car finance are available?

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What is the best financing option?

There is no universal answer for this. When deciding whether to finance your car through Hire Purchase (HP) or Personal Credit Purchase (PCP), you’ll need to analyse the affordability of the finance type, as well any terms and conditions attached to the type of contract you choose.

If you have any questions about a specific type of financing, or simply struggle to figure out what the right choice is, give us a call! Our customer service team is here to help.

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How much does car finance cost?

This is also a very subjective question. The car financing deal you’re offered will depend on your specific circumstances. Factors such as the value of the car, the size of your deposit, the length of a loan, your credit score and the type of financing are the real deal breakers.

Can I get car finance if I’m…?

If you’re unemployed and think you’re unlikely to be accepted for car finance, we might be able to help. Some of the UK car dealers we work with are very experienced in this field, so don’t hesitate to give it a try!
Yes. However, it can sometimes be harder to get access to finance if you are self-employed. At Quick Car Finance, we can assist by checking your budget and providing you with a list of realistic options from reputable car lenders. Visit our Self-employed Car Finance page to learn more.
Yes. Besides employment, other factors are considered when reviewing your car financing application. While it’s not guaranteed that you will be accepted, we will try our best to help you.
Naturally, it comes with its challenges, such as getting accepted with bad credit or without a deposit. But we might also be able to help both students and young drivers to find the car they need.
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New Cars vs Used Cars

New and used cars come with their own set of pros and cons. Perhaps, the biggest benefit of financing a new car is that you have the protection of a full manufacturer warranty should something go wrong. Newer cars also tend to have more advanced technology and be more fuel-efficient.

However, one great reason to finance a used car is that you avoid taking the financial hit of depreciation; most cars lose around 20% of their value the minute they leave the dealership. Moreover, used cars can also be a 100% safe purchase if done through a reputable car dealer.

In short, there is no answer to the question of whether it is better to finance a new car or a used one. It all comes down to your specific needs and financial capabilities. If you wish to learn more about how used car finance works at Quick Car Finance, visit this page.

How much can I borrow?

Now that we’ve gone through all the basics of car finance, it’s time to get real. Use the calculator below to get an idea of the amount of money you want to borrow and can actually pay.

Rates from 8.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £7,500 over 5 years with a representative APR of 20.25%, an annual interest rate of 20.25% (Fixed) and a deposit of £0.00, the amount payable would be £192.84 per month, with a total cost of credit of £4070.40 and a total amount payable of £11,570.40.

We will always provide the best rate from our panel of lenders and based on your individual circumstances. We do not charge any fees for our service. But we earn a commission from the lenders we work with. This does not affect the interest rate you will be offered.

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Is the car you’re looking to finance electric?

Quick Car Finance makes it easier for you to transition into a more sustainable future. If you would like to, but don’t know where to buy an electric car, we can even help direct you to reputable dealers. Our finance application process is also just as fast with electric cars as it is with standard cars! Visit our Electric Car Finance page to learn more.

Useful guides


1. Does car finance affect my mortgage?

When you apply for a mortgage, lenders will likely take a thorough look at your finances, including any car finance deal you’ve had. Defaulting on car finance payments, even years after you’ve paid off your car can damage your credit report and score and, in some cases, you may find yourself ineligible for better mortgage deals or a mortgage at all. Learn more here.

2. Even if I meet all the requirements, is car finance guaranteed?

Unfortunately not. However, the more flexible and trustworthy the company you apply with, the bigger your chances of getting accepted.

3.What happens if I’ve been refused car finance before?

While having your application rejected may seem like the end of the world, there are steps you can take to make sure that the next time you apply. Read this blog article to learn what to do if you find yourself in this situation.