The Future of Car Finance

Carmoola makes spreading the cost of your new car simple. Don’t get caught out at the last minute! We'll help you find your budget and get you ready to buy  a new car in just a few minutes. And something else we know you're going to love? It all happens 100% online, with the Carmoola app. 

Why Pay For Your Car With Carmoola?

We care about you, and helping you access fair car finance

We care about you, and helping you access fair car finance

We’re passionate about making your journey amazing

We’re passionate about making your journey amazing

We use the latest technology to improve your experience

We use the latest technology to improve your experience

The right car finance deal for you

Car finance often has a couple of different payment options, so we thought it best to explain the difference between them. Don’t forget, you’ll always deal directly with us, so we’ll be with you throughout the journey. We are passionate about ensuring you have a great experience, and can easily get in touch with us for help if you need it. If you want to get a feel for how much you can borrow check out the car finance calculator. 

Is car finance worth it?

This is a great question! It's important to understand that taking car finance is a commitment, but one that actually gives you a lot of freedom, and loads of great benefits. Spreading the cost of your car usually means that you can afford to drive a much safer, newer (and cooler 😎)  vehicle. But it's important to understand the different types of car finance in a bit more detail, so you can choose a plan that works best for you. So we think yes, it's worth it!

Zero deposit car finance deals

With Carmoola, we offer you the chance to get a 0 deposit finance deal. This means that you'll borrow 100% of the value of the car - no savings needed! It can be really convenient for some car buyers, because zero deposit agreements don't require any upfront payments, meaning you can finance you car and buy it instantly. Car finance with zero deposit works best for used cars, and will usually be given on a Hire Purchase agreement. You can read more about that below.

Car finance rates in the UK

Interest rates for car finance can vary from one provider to another, but also will depend heavily on your credit profile. When applying for car finance, the interest rate you'll be offered will depend on the lender's assessment of your risk and affordability. The better your credit file and likelihood of paying back the loan, the lower the APR you can access. 

Hire Purchase (HP)

HP is a car finance plan that helps you to spread the cost of your next car by making monthly payments over an agreed length of time.

You’re likely to pay higher monthly payments than a Personal Contract Purchase (PCP) agreement, but when you come to the end of the agreement you’ll own the car outright.

There are no annual mileage limits to worry about, so you can drive as much as you like!

A Hire Purchase agreement could be perfect for you if you’re keen to keep the car at the end of the term.

Hire Purchase (HP)

Personal Contract Purchase (PCP) - Coming soon!

PCP is a type of car finance plan enabling you to make affordable monthly payments over an agreed contract length, with a larger (optional) final ‘ballon’ payment due at the end. The balloon payment is only due if you want to buy the car outright.

At the end of the contract, you’ll have three options to choose from. Option 1 is to hand the car back to the finance company (it needs to be in good condition and you’ll need to have kept under the agreed mileage, otherwise there may be additional fees to pay). Option 2 is to part-exchange it for another car, and start a new agreement for that car (subject to status). Option 3 is to pay the final balloon payment, and you’ll own the car outright.

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.


Personal Contract Purchase (PCP)

Did you know?

PCP monthly payments can often be more affordable than HP monthly payments. The reason for this is that a large part of the total amount payable on the PCP agreement is left to the end. You’ll also pay interest on the value of the car at the end of the contract, which means that PCP can be more costly overall.

Learn more about HP vs. PCP in our detailed blog article!

How does Carmoola work?

Get the app and find out your budget in under 3 minutes

Get the app and find out your budget in under 3 minutes

Buy any car from anywhere, with your Carmoola card

Buy any car from anywhere, with your Carmoola card

Increase, decrease or pause your payments at any time

Increase, decrease or pause your payments at any time

You deserve an upgrade on that old banger

Popular car finance questions

When can I get access to Carmoola?

Carmoola is launching this Summer 2021... so don't forget to sign up for early access!

What information do I need to provide?

You’ll add a few personal details such as name and current address, and verify your identity with a passport or driving licence

What is a "balloon" payment?

A balloon payment is an amount of money due at the end of your finance agreement. This amount is set when you sign the agreement. It can be calculated based on the 'Guaranteed Minimum Future Value' of the car at the end of the contract or a pre-agreed amount based on the type of finance agreement you have taken out. 

Can I repay my loan early?

It's always possible to repay your car loan early. If you are in a comfortable position financially then you can save big on the total amount of interest you pay. You need to consider the value of the car and what type of car finance you have... some providers will charge you fees for early repayment.  

Who can get a car finance loan?

To get car finance, you will have to be over 18. Most lenders have their own requirements. Download the Carmoola app to see if you can get finance with us, or check out this article to find out more.


What documents do I need to apply?

With Carmoola, it's super easy! All you need is a form of photo ID which you'll scan in the app, and we'll verify against a quick selfie!

What's the difference between PCP and HP?

We've written a great blog on this topic! Click here to open it and find out everything you need to know!

Am I eligible for car finance?

This can entirely depend on your individual situation, but we've put together a great piece to cover lots of different scenarios. Check out our blog called Can I Get Car Finance? to see if you're eligible. And if you don't find your topic there, we'd be happy to write about it, just drop us a message.

Does a car finance quote affect my credit rating?

No, it shouldn't! With Carmoola, we'll only run a 'soft' credit search, and you'll be able to see how much you can borrow. A 'hard' credit search, which may affect your credit rating, only happens right at the end of the process when you sign the documents and buy your car with us. Check out this handy blog for more information too!

Will multiple quotes affect my credit rating?

We do believe that you should shop around for your car finance agreement, but you do need to be wary of lenders or brokers running what's called a 'hard credit search' on you. These leave an imprint on your credit file, which if you have too many, can be a red flag for other lenders. Read more about this topic so you don't get caught out, and you know exactly what to look for!

Can I apply for finance online?

Yes you can! We're really changing the game at Carmoola, with a 100% online process. With many other brokers and lenders, they'll need you to book a call or two with them in order to secure your finance agreement, however with Carmoola, you can get sorted online in just a few minutes - then buy your car from anywhere!

How are car finance decisions made?

There are several key factors that contribute to car finance decisions. Your credit profile, your affordability, proof of identity, and the car you're buying. You can read more about the process here and find out how to get the best deal here!