Car Finance Explained

All you need to know about car finance: explained.

A white, navy and grey car parked.
  • Get a decision within minutes
  • Find a deal that fully suits you
  • Apply online and let us help you
A man opens the door of a red car.

How does car financing work?

Car financing can be confusing for those new to it, so we’re here to explain how it works. 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, all that’s left to do is to get a quote. Get your car finance quote with us and we’ll explain everything along the way! 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 will ensure you get your car as quickly as possible.

There are a few different types of car finance available, each with its own set of benefits. If you’re not sure which to go for, don’t worry - we explain these different car finance options below.

What types of car finance are available?

There isn’t just one way to finance a car - you do have a few options. While one option might suit you more than the other, it’s always good to understand what’s available. Here are your car finance options explained:

A man stands next to a grey car.

What is the best car financing option?

There is no universal answer for this. As we’ve explained, one car finance option might work for some, but not others. This makes it even more important that you understand how each one works.

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 as any terms and conditions attached to the type of contract you choose.

If you have any questions about car finance or want it explained further, give us a call! Our customer service team is always available to help talk through your options.

A man thinking.

How much does car finance cost?

This is a difficult one to explain as it’s largely subjective. The car financing deal you’re offered will depend on your specific circumstances, just as the amount you pay will. 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.

If you want to see how much you’re likely to be able to borrow, then scroll down to our car finance calculator, or click here. This will give you a good idea of how much your monthly payments will be.

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. Don’t let your employment status put you off applying for car finance - some of the UK car dealers we work with are very experienced in this field, so please don’t hesitate to give it a try!
Yes, you can still get car finance if you’re self-employed. 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 that can work in your favour. While it’s not guaranteed that you will be accepted, we will try our best to help you find a deal that works for 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.
Woman stood in front of a grey volvo.

New cars vs used cars

Financing a new or a used car comes with its 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. In addition, used cars can also be a 100% safe purchase if done through a reputable car dealer, just like the ones we work with.

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 situation.

How much can I borrow?

Now that we’ve explained the basics of car finance, it’s time to put them into practice. Use the calculator to get an idea of the amount of money you want to borrow and how you want to pay it.

Electric car charging.

Wanting to finance an electric car?

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

Car Finance Explained FAQs

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.

Unfortunately not. However, the more flexible and trustworthy the company you apply with, the bigger your chances of getting accepted. Despite this, we have plenty of reputable lenders that we work closely with, so we’ll provide you with a good range of options if your first choice doesn’t work out.

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