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As you can probably guess from the name, vehicle finance is a form of credit specifically tailored to people looking to buy a vehicle. It allows you to spread your repayments over a longer period of time, rather than purchasing the vehicle outright, making it a more affordable option. The two most common types of vehicle finance are Hire Purchase (HP) deals and Personal Contract Purchase (PCP) deals.
A hire purchase agreement is similar to any other type of secured loan. You’d typically make a deposit, and then your monthly instalments would cover the cost of the loan, as well as any added interest. When you make your final payment, you’ll then own the vehicle outright.
With a personal contract purchase deal, you’d generally make an initial deposit, and then make monthly repayments. What makes this different from a hire purchase agreement is that you’re not covering the cost of the vehicle itself, but the depreciation of the car.
This is the amount it goes down in value between the time of purchase and the end of your contract. Then when your term ends, you can choose to make a ‘balloon’ payment – this is a payment to cover the remaining price of the vehicle. Alternatively, you can enter into a new agreement, or hand back the keys to the vehicle and walk away entirely.
To apply for a vehicle loan through Vehicle Finance Today, you’ll need to be aged 21 or above, have a driving licence, have a regular income, and live in the UK. And if you’re concerned about a bad credit history, many of our lenders will still consider your application even with a low credit score.
Of course – you don’t need a perfect credit score to apply for vehicle finance! Even if other lenders have turned you down previously, you could still be eligible for a car loan. Vehicle Finance Today works with a number of specialist lenders who may be able to help.
And if you’re still a bit unsure, you can use our free vehicle finance calculator!
When you apply through Vehicle Finance Today, you can request a loan of £4,000 to £200,000. Do bear in mind though that how much you’re able to borrow will depend on things like your income and monthly budget.
When it comes to interest rates, the rate you’re offered may vary depending on factors like your credit history and how much you’re looking to borrow.
If you want to get a better idea of how much your car finance agreement will cost each month and in total, you may wish to use our vehicle finance calculator.
When you apply with Vehicle Finance Today, it shouldn’t take more than a couple of minutes to complete the application. Though the process generally goes even quicker if you have all the right documentation to hand! This will include things like your monthly budget, and your average salary figure.
No – here at Vehicle Finance Today, there are absolutely no hidden fees or charges! You can use our services for free, as we work on a commission basis with our lenders.
To apply for car finance through Vehicle Finance Today, you simply need to click on the button below! We’ll ask you a few questions about yourself and the loan you’re looking to take out, and then try to match you with a suitable lender.
Pretty much! You can buy a car from any reputable UK dealer who is authorised by the Financial Conduct Authority (FCA). If you’re unsure if this is the case, we can check for you!
While many people assume you can only get new cars on finance, you can actually buy either new or used vehicles with a vehicle loan. Simply let us know what sort of cars you’re interested in, and we can help you find a great deal!
Unlike with a personal loan, with vehicle finance, you won’t own the car until you make the final repayment. With a PCP agreement, you wouldn’t own the car until you make the balloon payment at the end of your term.
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Applying for finance through us should only take a few minutes, and won’t impact your credit score. So what are you waiting for?
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