Can I get a car finance with bad credit?

Buying a new car is always a big expense. They’re often vital for work, shopping or the school run. Even the cheapest new car costs thousands of pounds.

Car finance is a common way to fund a new car and is a catch-all term for several different types of loan and hire purchase. If you’ve had credit difficulties in the past, you may be excluded from the better deals. So, can you get car finance with bad credit?

Fortunately, there are still options available.

How you might get car finance with bad credit

There are lots of reasons why someone might have a lower-than-average credit score . Maybe you defaulted on a past loan, or have previously declared bankruptcy . Perhaps because you’re young or because you only recently moved to the UK you don’t have much of a credit history. Whatever your reason, sites such as Confused.com will search the market to find the car loans you’re may be eligible for, but 1Plus1 offer personal loans for cars backed by a guarantor, subject to both the borrower and guarantor meeting our affordability and credit worthiness criteria.

If you think you may be interested in a 1Plus1 Loan, please give us a call on 0330 1200 313 and one of our friendly staff will be more than happy to discuss the process with you, or start your application here.

You can find a lot of information about car financing here too.

How much does car finance cost?

Car finance arrangements are all loans of one type or another so you’ll always end up paying more in total than if you paid for a new car in cash. However, there are ways you can reduce the amount you pay:

Pay more up front

The more cash you put down on your initial purchase, the smaller the loan you’ll need to borrow

Shorten the term

The longer your loan lasts, the more interest will mount up. With a shorter-term loan monthly repayments will be higher, however the total cost will be lower.

Running costs

You also have to consider running costs. It could be the second most expensive thing you’ll buy – after your home. So it’s important to make sure you choose the best way to buy a car for you and be sure you can not only buy the car, but meet the running costs. There are insurance costs, servicing costs and everything else over the course of a year you’ll need to pay to keep the car running safely and legally. You should shop around for your insurance to make sure you get the best deal for you and you get the cover you need, especially if you use your car for work.