Car finance

Get my quote.
No impact on your credit score.

Buying a car is a significant investment that can put a strain on your finances. Car finance can be an excellent option for those who want to buy a vehicle but don't have the cash up front. With different types of car finance available, it can be a challenge to understand which option best suits your needs.

x.xx% APR Representative

Calculate monthly car finance payments

The world of car finance can be a confusing one – but we’re here to help simplify things. Use our car finance calculator to help you decide whether car finance could be a good option for you, without affecting your credit rating. The calculator will give you a good idea of what your monthly payments could look like based on how much you’re looking to borrow.

Don’t worry, you’re not committing to anything; this tool is simply a useful guide to help you figure out a budget that suits you best before you complete a full application for car finance.

What is car finance?

Car finance is simply the process of taking out a loan to buy a car. It's a way to spread out the cost of a vehicle over a period of time rather than having to pay for it all up front. This can be really helpful for people who can't afford to pay the full price of a car at once.

How does car finance work?

Car finance spreads out the cost of a car purchase over a set period of time. When you opt for car finance, you borrow money from a lender to pay for the vehicle. You then repay the car finance in instalments over an agreed-upon timeframe, which is typically a few years.

The amount you can borrow and the interest rate you'll pay will depend on various factors, such as your credit score, income, and the price of the car. If you have a good credit score and a stable income, you're more likely to be approved for a loan with favourable terms, such as a lower APR.

Types of finance

There are different types of car finance, like car loans, hire purchase and personal contract purchase (PCP), so you'll want to do some research to figure out which one is best for you.

How does car finance work?

Types of finance

There are different types of car finance, like car loans, hire purchase and personal contract purchase (PCP), so you'll want to do some research to figure out which one is best for you.

How does car finance work?

Types of finance

There are different types of car finance, like car loans, hire purchase and personal contract purchase (PCP), so you'll want to do some research to figure out which one is best for you.

Car loans

A car loan is a type of finance arrangement that helps car buyers cover the cost of their purchase. The buyer borrows a lump sum of cash up front and then makes monthly payments over a set amount of time (which can vary depending on the agreement type).

Hire purchase

Hire purchase is a type of car finance where you make fixed monthly payments over a pre-arranged period of time until you’ve paid off the full cost of the car, plus any interest. During the hire purchase agreement you essentially hire the car from the lender until you’ve paid off the full amount owed. After all payments have been made, including the final ‘option to purchase’ fee, you will own the car outright.

Personal contract purchase

Personal contract purchase (PCP) is a type of car finance that allows you to make lower monthly payments on a vehicle by deferring a significant portion of the cost to the end of the agreement. With PCP, you won’t own the car until you’ve made the final lump sum payment, known as the ’balloon’ payment.

Personal contract hire

Personal contract hire (PCH) is a type of car finance that allows you to lease a vehicle for a set timeframe, typically between two to four years. With PCH, you don't own the car, but you have the right to use it for the duration of the contract in exchange for monthly payments. At the end of the agreement, you simply return the car to the leasing company and have the option to start a new lease on a different vehicle.

How to finance a car with Oodle

01 Apply online

Find out if you're pre-approved in seconds

01 Apply online

Find out if you're pre-approved in seconds

01 Apply online

Find out if you're pre-approved in seconds

02 Get accepted

You’ll have the money in your account the next working day

02 Get accepted

You’ll have the money in your account the next working day

02 Get accepted

You’ll have the money in your account the next working day

03 Shop anywhere

Shop online or in a dealership

03 Shop anywhere

Shop online or in a dealership

03 Shop anywhere

Shop online or in a dealership

Man checking car finance eligibility on mobile phone

Screenshot of Oodle Application, with examples of ways to prove your identity.

Am I eligible for car finance?

When you apply for car finance, you’ll be subject to credit checks and certain eligibility checks by your lender to help them decide whether they’re able to offer you a finance agreement.

You will need to provide:

Proof of age (all applicants must be aged 18 years or over to be considered for car finance)

Proof of address (typically you’ll have to show where you’ve lived for the past three years)

Proof of earnings (personal, and household if you have dependents such as children)

Employment status

A full or provisional, valid UK driving licence

A guarantor (if requested by your lender)

Although not everyone will get a finance deal with Oodle, there are other options out there; even if you have a lower credit score, it is worth checking to see what might be available.

FAQs about car finance

Can I get car finance if I have a bad credit score?

Will applying for finance affect my credit score?

Can you part exchange a car on finance?

What checks are done for car finance?

How much car finance can I get?

NEWS Aug 2024: FCA announcement on discretionary commission arrangements (DCAs)

Oodle customers are not impacted