Car finance

Take control of your car finance with flexible monthly payments to suit you.

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

Representative 15.7% APR

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.

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

We offer hire purchase loans between £2k-40k for used cars.
Finance is subject to status and is only available to UK residents aged 18 and over.

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.

Hire Purchase (HP)
Personal Contract Purchase (PCP)
Personal loan

Hire Purchase (HP)

HP is a straightforward car finance product that can help spread the cost of your car by making monthly payments over an agreed term. You have the option to either pay a deposit upfront (which can be cash, trading in your old car or a mix of both) or add it to the repayment amount. You then agree on fixed monthly instalments and after the final payment you will own the car outright.


Personal Contract Purchase (PCP)

PCP is a flexible car finance product that (after you pay a deposit amount) allows you to make affordable monthly payments over an agreed contract length, with a larger (optional) final ‘balloon’ payment due at the end. A balloon payment is only due if you want to buy the car outright. You can also part exchange your car at the end of the term, or simply give it back to the lender.


Personal loan

A personal loan is an option that can work well for customers with a higher credit rating. 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 simply get a finance offer from your bank based on what they believe you can afford to borrow, and comfortably repay.

Personal Loan

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.


Hire Purchase (HP)

Personal Contract Purchase (PCP)

Personal Loan

No deposit required

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Car is yours at the end of the agreement

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Fixed monthly payments

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No (final) balloon payment

A large lump sum payment which is deferred to the end of a finance agreement.

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No excess mileage charges

No mileage restrictions, so you
can drive freely without incurring 
additional fees.

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Secured against
the vehicle

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Available on Carmoola

Yes, Learn More



See if you’re likely to be approved 🤞

  • Aged between 18 - 75
  • Live in the UK
  • Have a full driving licence
  • Buying a second hand car
  • Borrowing between £2K - £40k

Answer a couple of questions to find out if you might be eligible to buy your car with Carmoola!

New to car finance?
Check out our guides

HP vs PCP: Which is right for me?

HP vs PCP is the big debate in car finance. They’re two of the most popular ways to spread the cost of buying a new or used car and have many...

7 Min Read

What is Hire Purchase (HP) finance?

Considering financing a car with a Hire Purchase (HP) agreement? Check out our guide to all things HP to help you decide whether it’s the right...

8 Min Read

How does Personal Contract Purchase (PCP) finance work?

Considering PCP finance? If you’re weighing up your car finance options and keen to understand whether PCP is the best choice for you, you’ll need to...

10 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 👍

Rates from as low as 6.9% APR, Representative 15.7% APR

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