This is how the Car Financing Process Works
The 3 types of car finance available to you!
FAQs How does car finance work?
You can get a head start with your affordability check and know how much you can spend on a car. Don’t forget to budget for the vehicle’s running cost and the monthly finance repayments.
A lower credit score, even bad credit, won’t necessarily exclude you from obtaining a car finance deal. However, expect a higher APR and, consequently, larger monthly repayments.
You’ll own the car with HP when you make the final payment. PCP is different. When the PCP ends, you’ll have the option to pay the balloon to own the car. Suppose you want to own the vehicle from the start.
Take out a personal unsecured car loan. You’d own the vehicle outright as soon as you buy the car – this type of loan requires a good credit rating.
Only if you consent to proceed with the Approval will a hard search happen – a hard search remains on your credit report and can negatively impact your score.