What's New About Car Finance in 2022

2020/21 may have been a strange time for all of us, but it should not stop you from getting that first car or dream vehicle this 2022. So what is happening in the UK car finance market these days? There is no better timing to purchase your new car since there are a lot of amazing deals. In this article, you’ll learn more about new car finance 2022 and where you can get a car loan these days!

Consumers have the best opportunity this year to discover some exciting new car deals, but it’s also essential that you have an idea of the car you will buy, the car financing you’ll get,  and the how-tos of purchasing a car. So we have listed all you need to know - from new rules to the best purchase plans out there. Let’s begin!

New Year, New FCA Rules

The new rules that the Financial Conduct Authority or FCA signed off  took effect last year. So, what does this mean for consumers like you? First, the new rules are set to help car buyers, especially when they make the purchase through car finance.

In the previous rules, finance companies gave the distributors the freedom to determine the interest rate to provide to the car buyers. If they set the interest at a higher rate, the finance company gives them an additional commission while the buyers will have to pay a higher amount every month until the end of their car finance contract. 

With the new rules, distributors are no longer allowed to profit by giving you a higher interest rate. They now need to provide the consumers with the lowest interest rate available to attract more car buyers. 

Distributors will still have their commission through your finance agreement and still be tied to your borrowed amount. But the difference this time is that they will not earn money by giving you the higher interest rate. This is good news for car buyers like you!

The 22 Series Plates are Here

The UK and various places all over the world have experienced lockdown due to Covid-19, but the good news for the buyers is you can enjoy discounted prices for cars. Many dealers are currently offering the biggest discount for new cars. And another good news is the new 22 series registration plates are available to new car models even in the midst of difficult restrictions.  

Just last March, new registration numbers has arrived making it the best time to scour the showroom or online for that new car. There are currently over two million registration numbers that you can choose from. Get your registration plate early so you can select one that fits you best like your name, initials, or favourite word. 

Buying and Financing Cars Online

Not everyone is an expert on how to finance a car purchase. There are so many options available to you now! You may be asking yourself, “where can I buy a car online?” Since the start of the pandemic, online buying and online deliveries have become part of our lives. It’s now the new normal. Things are so much different to how it was only 20 years ago. Everything can be bought online nowadays, and it’s good to know that even car dealers and manufacturers allow buyers to conveniently make their purchases online as well. 

Buying a car online took some time to pick up from other types of products, mainly because it takes a more considerable financial commitment than buying a new laptop or smartphone. At present, a lot of car companies provide arrangements, financing, and delivery for your online car purchases. In addition, they can work out a contract deal such as a Personal Contract Purchase or PCP and deliver your vehicle to your preferred place and time.

Benefits of Buying a Car Online

The best car deals UK can now be seen and accessed online. There are several benefits of purchasing a car over the internet than the traditional way. If you were to buy a car before, you’d have to go personally to the showroom to shop and make the purchase. But with the internet, online purchasing means buying your dream car in the comfort of your own home and at your most convenient time.

There are already quite a few companies that have embraced this system by fully incorporating all that is needed in the car-buying experience. Two of the first car companies to adopt this scheme were Hyundai and Peugeot. They have personalised websites where you can complete the process step by step, plus they have options for individual finance.

The online car-buying system allows buyers to take charge of their car-buying journey. It also enables buyers to create and modify the vehicle, and at the same time, they can check how the finance options change with each modification. As the buyers add or remove optional features, they can see the changes in their finance in real-time.

No Need to Wait

Gone are the days when car buyers have to wait to go to the showrooms or wait for their dream cars to be on display. Online purchasing lets us buy the cars we want easily, quickly, and hassle-free. After doing your own research and knowing what vehicle is best for you, there’s absolutely no need to wait. 

The “Click to buy” option in the car companies’ websites or car dealership sites promises an easy process. You can pick a car through their quick and straightforward apps using your mobile devices. The process of purchasing a car nowadays will only take you less than five minutes when paid in cash. 

In the same way, car financing is also fast, easy, and convenient. If you need financing to make your purchase, you can do so using apps like Carmoola. Once you’ve downloaded the app, you just need to enter your personal details and verify your identity using your driver’s licence. In a matter of minutes, you’ll know how much you can get for your car purchase. 


2022 may be different from the previous years because of the situation that the whole world is in. In 2022 we find interest rates are swiftly rising so look for a deal with a fixed interest rate - most HP and PCP deals are, but always make sure of what you are committing to. But the car industry is adapting to these changes and continually makes car buying easier for consumers and that is just what we are doing here at Carmoola. With the new rules, better deals, and the shift in online car purchasing and financing, car buyers are all the more excited to buy their dream cars.   😃🚘