Before you continue

Representative Example: You could borrow £10,699 over 60 months with an initial payment of £495.89 (including £199 Admin Fee) followed by 58 monthly payments of £296.89 with a final payment of £495.89 (including optional £199 Option to Purchase Fee). Total amount repayable will be £19,012,40. 26.1% APR, annual interest rate (fixed) 13.3%.

How to apply for car finance

 

Applying for car finance doesn’t need to be complicated. Whether you’re buying your first car, looking for a used vehicle, or need a flexible option like car finance with zero deposit, this guide will help you understand how the application process works and what you’ll need to get started.

How do I apply for car finance online?

One of the easiest ways to apply for car finance is online. Most lenders, finance brokers, and car dealers offer simple online applications that only take a few minutes to complete.

Before you apply, check your credit score. This gives you a good idea of your chances of approval and what interest rate you may be offered. Even if your score isn’t perfect, there are lenders that specialise in car finance for bad credit.

You can also explore options like hire purchase (HP), personal contract purchase (PCP), or leasing. At AutoMoney, we only offer HP finance, which gives you the option to own the car at the end of the agreement.

Existing Customer

What information do I need to apply for car finance?

To apply for car finance, you’ll need to give some basic personal and financial information. This helps the lender understand your circumstances and assess your application.

You’ll usually be asked for:

  • Your full name, date of birth, and address history (usually for the past three years)
  • Your job details, including employer name and how long you’ve worked there
  • Your monthly or annual income and any regular expenses or financial commitments
  • Proof of ID (like a passport or driving licence), proof of income (such as payslips or bank statements), and a recent utility bill or council tax letter to confirm your address

Having all this information to hand can help you become more prepared for your finance application.

Can I check finance offers without affecting my credit score?

Yes. Many lenders now offer what's called a quotation search or soft credit check. This allows you to see example rates and repayment terms without leaving a mark on your credit file.

This is useful if you're comparing car finance deals or if you’re worried about your credit score. A soft check won’t affect your chances of being approved elsewhere, so you can explore different offers safely.

Once you’re happy with a quote, the lender will usually carry out a full credit check before giving final approval.

Should I apply with a lender, broker or dealership?

There are three main routes for making a car finance application:

  • Applying directly with a lender: This is often the fastest route. If you know who you want to borrow from, applying directly can give you quicker decisions and fewer delays.
  • Applying through a broker: A broker compares offers from multiple lenders. They’ll help match you to a deal that suits your credit profile and budget.
  • Applying at the dealership: Many dealers offer finance options, either directly or through a broker. This can be convenient, but may limit your options to lenders they work with.

All of these car finance options are accessible to customers. The best route for you depends on how you prefer to manage your application. Whatever option you choose, make sure to compare interest rates, agreement terms, and whether zero deposit car finance is available

White Car In Showroom

What happens after I apply for car finance?

Once you submit your application, the lender will assess your details and credit file. If you’re approved, they’ll send you a finance offer.

This will include:

  • The amount you’re allowed to borrow
  • The interest rate (APR)
  • Your monthly repayments
  • The agreement length
  • The total amount repayable over the term
  • Any fees or final payments

Make sure you understand the full cost of the finance, not just the monthly payment. Some options, like PCP, have a large final payment if you want to own the car, while HP finance gives you ownership once all payments are made.

When do I choose the car I want to buy?

Some people apply for finance after choosing a car, while others get approved first so they know the amount they have been approved for. Either way of applying is fine, but it’s best to avoid making a final decision until your finance is confirmed.

If you're applying with a lender or broker, you’ll usually be asked to provide details about the car you want to finance. This might include the make, model, mileage, and cost.

Make sure the car matches the finance agreement, for example, PCP may have mileage limits, while HP has fewer restrictions. If you’re still deciding, check out our guides on how to choose a car and what to look for when buying a second hand car.

What happens after I sign the finance agreement?

Once your agreement is signed and processed, you’ll be ready to collect your car. But before you drive away, there are a few important checks to make.

Inspect the car carefully, inside and out. Look for any signs of damage or faults, and make sure all the features are working. Check that the mileage, model, and condition match what was promised in the advert listing.

If there’s a problem, report it straight away. When buying a car on finance, your contract is with both the lender and the dealer, so you’re protected under the Consumer Rights Act if the car isn’t as described or develops faults within a certain period of time.

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