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Car finance

Cruise through car finance with Carmoola.
Take control of your finance with flexible monthly payment plans to suit you.

Takes 60 seconds, no impact on your credit profile to see if you're approved 👍

Representative 14.8% APR

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How does car finance work?

Car finance is simply a credit agreement between you and a lender. This agreement lets you pay for a car in monthly instalments. This means that you can borrow money from a lender to pay for the car and then repay the amount borrowed with interest to the finance company. 

 

The total amount you repay will depend on four factors - how much the car costs, the length of the term you decide on, the size of your deposit and the interest rate you’re offered by the lender.

What are the different types of car finance?

There are a variety of different types of car finance available, ranging in flexibility, so it’s important to consider all of the options available to help tailor the right finance package for you.

The main types of car finance are:

Hire Purchase (HP)

HP is a straightforward car finance product, where you pay for your car in monthly instalments and after the final payment has been made you will own the car outright. HP might be the best choice for you, if you are prioritising car ownership at the end of the agreement.

Diagram displaying how HP finance works
You can get a Hire Purchase loan with Carmoola.

 

Personal Contract Purchase (PCP)

PCP allows you to make affordable monthly payments over an agreed contract length, with a larger (optional) final ‘balloon’ payment due at the end. The balloon payment is only due if you want to buy the car outright, however you can also part exchange your car at the end of the term, or simply give it back. PCP might be best for you if you’re thinking of changing your car every couple of years, or if you’re unsure about whether you’ll want to buy the car at the end of the term or not.

Diagram displaying how PCP finance works

Carmoola does not currently offer PCP.

Personal Loan

Another option that can work well for customers who have a higher credit rating is to take a personal loan. These loans are often unsecured, and may be available through your bank. When applying for a personal loan, you don't need to share details about the car you're buying. You'll get a finance offer from your bank based on what they believe you can afford to borrow, and comfortably repay.

Diagram displaying how a personal loan works

Carmoola does not offer personal loans.

Which car finance option is right for me?

If you're thinking about getting car finance, it's good to get an idea of how much you might be able to borrow, and what that would cost each month. We've created a handy car finance calculator where you can play around with your monthly loan payments, loan amount, and contract length.

How it works

Out with the old. Drive in with the new.

Step 1

Set your loan amount

In just 60 seconds, see how much you can borrow towards your next car

Step 2

Buy your dream car

Pay swiftly online with your card, or by bank transfer at the showroom

Step 3

Hit the road and pay monthly

It's time to plan your next adventure 
in your shiny new ride

No dealership commissions, no middlemen. Just you, and us 🥰

Types of car finance available

Lucky for you, you've got options! With Carmoola there are lots of different types of cars you can get on finance. Here's a guide of what we can, and can't help you with.

  • Electric car finance ⚡️
  • Hybrid car finance 🔋
  • Automatic car finance 🚙
  • Manual car finance 🕹
  • New car finance ✨
  • Diesel car finance (Euro 6 and above) 🚘
  • Petrol car finance (Euro 5 and above) 🚗 🛻
  • Used or second hand car finance 🥈
  • Zero deposit car finance 👌
  • No cars with over 100,000 miles ⏱️

Thinking of going green? 🌳

And to top it all off, if you're looking for electric car finance deals, you've come to the right place! In the future, Carmoola is introducing an exclusive green discount for any customer who buys an electric a car with Carmoola 🌳

The thing to remember about Carmoola is that we offer used car finance in the uk, but currently we can't help customers buy a brand new car.

New to car finance?
Check out our car finance guides

How to Improve Your Credit Score

If you’re planning on financing your next set of wheels, a good credit score doesn't just increase your chances of approval. It also paves the way to...

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The Used Car Finance Market Is Changing Rapidly

In a financial landscape where regulatory scrutiny is heightened and consumer trust is waning, the direct-to-consumer proposition offered by Carmoola...

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Do Hire Purchase Car Loans Have a Balloon Payment?

When exploring hire purchase as a car finance option, you may be wondering if these loans include a balloon payment 🎈

3 Min Read

FAQs About Car Finance

Here are some of the most frequently asked questions about car finance. Got more questions? Try our FAQs page 👍

Do you have a car finance calculator?

We most certainly do. Our HP car finance calculator can help you work out things such as how much interest you’ll be paying, how much your car payments will be each month, and the APR on your car finance.

What credit score do I need to get car finance?

Credit score is not the only factor that determines whether you can get car finance or not. We'll also review your affordability, run fraud checks, and need to see your full driving licence. The best thing to do is start an application to understand how much you may be able to borrow, where we'll only run a soft credit search. A soft credit search doesn't impact your credit score at all, so you've got nothing to lose!

Will applying for car finance affect my credit score?

Applying for car finance can temporarily affect your credit score, but the extent depends on the type of credit check the lender uses:

  • Soft Checks: Pre-approval checks often use this type, which doesn't impact your score. It lets you see potential loan terms without triggering a "hard check." Carmoola will conduct an initial ‘soft check’ to help pre-approve your application, help establish how much you could borrow and what the terms of your agreement could look like.
  • Hard Checks: When you officially apply for a loan, lenders perform a hard check, which leaves a temporary mark on your credit report for about two years. Multiple hard checks in a short timeframe can adversely impact your score.

How long might it take to get a decision on car finance?

Carmoola will give you a lending decision within 60 seconds, and a decision on your complete application within a few hours. Generally with traditional lenders you should expect a decision within 24 hours for pre-approved applications and 1-3 business days for full applications. Some lenders might even offer instant decisions in specific circumstances. 

How much can I borrow to buy a car?

When you start your application, we'll review your income and expenditure, and let you know how much you can borrow. With Carmoola, we'll provide you a range of how much you can borrow between £2,000 to a maximum of £40,000. You've then got the flexibility to choose the exact amount depending on what's right for you.

Are the monthly payments guaranteed?

Yes. With car finance, the interest rate is fixed throughout the agreement, so your monthly payments won't change. 

Can I get 0% finance on a car?

No. If you're looking for Hire Purchase car finance then there will always be some interest to pay. Typical interest rates range from 6.9% to 24.9%.

Are there any restrictions on car finance?

Not with Carmoola! When you take car finance with Carmoola there are no mileage restrictions. 

Dream it Drive it

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Takes 60 seconds, no impact on your credit profile to see 
if you're approved 👍

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Rates from as low as 6.9% APR, Representative 14.8% APR