How Does Car finance Work

Car finance is a way of paying for a vehicle over time, it allows you to spread the cost of the car over a chosen period by making monthly repayments. We have three types of finance options available to suit you, some of which may require a deposit but that depends on the lender you get accepted with. The three types of finance that we offer are hire purchase, leasing and personal loans.

Hire Purchase (HP)

This is a secured finance option as you won’t own the vehicle until you have made the last payment, you won’t be able to sell the vehicle on without the lenders permission but you will be able to return it. You may have to pay a deposit but that depends on the lender you get accepted with. You will then pay the balance, plus interest, in instalments over the monthly term of your choice based on how much you can afford to pay back each month. You won’t have to pay a lump sum at the end of your finance agreement, the payments will be fixed each month and at the end of the agreement you will own the vehicle.


Car leasing is a long-term rental of a vehicle. If you can’t get accepted for hire purchase, then we may be able to offer you a great leasing deal. You will have to pay a deposit or initial repayment followed by monthly fixed payments. This can be a great option as new cars get released regularly you won’t have to worry about depreciation in the value of the vehicle as you do not own it and won’t have to worry about selling it when you come to wanting a new car. The monthly repayments will depend on the type of car you choose, the length of the contract and the agreed mileage limits.

Personal Loan

We may be able to offer you a personal loan to purchase a vehicle. This is where you borrow the amount to cover the cost of the vehicle which will be paid out to the dealership and you would make monthly repayments over a period of time to cover the amount you have borrowed. The APR on the loan will be subject to credit checks and you will own the vehicle from the outset.

What is APR?

An annual percentage rate is the cost of the money you borrow over a year. For example, If you owe £1,000, you have an APR of 20% on your agreement then over the course of the year you will pay back £200 interest on the money you have borrowed. APR can vary between lenders which generally depends on how much you want to borrow and your credit score. If your credit score is poor then you will likely have a high APR as the lender can view you as a higher risk than somebody with a good credit score.

Eligibility and how to apply for car finance

Many factors come into play when seeing if you are eligible for car finance, including your income, age and affordability. If you would like to see if you are eligible for car finance then the application process is simple, apply online at Get Me Car Finance. It doesn’t take long to fill out the application form and we only ever use soft searches which won’t affect your credit history when checking your eligibility. All we need is some details from you and our underwriting team will get your application processed quickly as possible as we know it can be frustrating to wait to see if you will be approved. Once your application has been processed you will receive an email or text to let you know if it has been successful, you will then be allocated a member of our fantastic team to go through the application process with you step by step and help you locate and secure the perfect vehicle. If your application for hire purchase has not been successful then we may be able to offer you leasing, if this is available you will receive an email or text message which you can respond to discuss this option further. Our team are very friendly and always on hand to answer any questions you may have.

How Long Does Car Finance Take

And Interesting question asked by quite a lot of people, however the answer is not an easy one. Car Finance applications can get paid out same day, they can be really really quick if there are no strange problems with the application, however if you have poor credit you may be required to upload bank statements and also driving licenses to the brokers. This can take time and the underwriters need time to analyse applications. With recent events (2020) of corona virus infections, car finance apps have been taking over 7 days at some stages and customers getting annoyed and frustrated has been the norm.