How can we help you get bad credit car finance?

11.9% APR Representative. We are a credit broker, not a lender.

If you’re someone who has bad credit, you may have been refused elsewhere for finance, and it can put you off trying to apply again. Whether you have bad credit due to an irregular income, because you’re a student, you’ve missed repayments or been given CCJ’s,there are still options for you. 

How can I get car finance with bad credit?

Even if you have bad credit, car finance options such as hire purchase, personal contract purchase, and lease purchase are still available to you. The only thing to keep in mind is that your interest rates and minimum deposit may be higher than if you have good credit. This is because if you have bad credit, you appear like less of a trustworthy and reliable borrower to the finance lender.

TIP: part exchange your old car and use the money from this to put towards your deposit

Types of car finance for people with bad credit

Hire Purchase Car Finance

HP involves paying fixed monthly repayments to the finance lender for the cost of your car. Interest rates are also fixed throughout the payment term, and at the end of agreement you become the legal owner of the car.

Personal Contract Purchase Car Finance

PCP is a more flexible car finance option. At the end of the agreement, you can either pay the ‘balloon payment’ (a portion of the cost of the car that has been deferred to the end), to keep the car, exchange it for a newer model if you have positive equity on the car, or return it altogether.

With PCP car finance agreements, the monthly repayments are usually lower compared to HP, due to a large chunk of the price of the car being deferred to the end. However, there are sometimes mileage restrictions on this type of finance plan.

Lease Purchase Car Finance

Lease purchase car finance involves renting a car for a certain period of time, and paying the cost back monthly over the agreed term. Once the contract comes to an end, you’ll have to hand the car back. As with personal contract purchase car finance, there are usually mileage and wear and tear restrictions, that if you breach, could mean you being charged extra when you come to hand the car back. 

What do I need when I apply?

Usually you’ll need to provide proof of employment, unless you are a student or retired, and proof of income.

If you’re self-employed and looking for bad credit you’ll typically have to provide evidence of your tax return for proof of income, and if you’re employed as part of a business, usually around 2-3 months worth of bank statements or payslips.

You’ll also need to provide proof of identity, such as a passport or drivers licence.

Essex Car Company can help you get a car on bad credit in Essex.

Here at Essex Car Company we’ve helped hundreds of customers with bad credit secure a finance deal that suits their budget and circumstances.  

We work with a number of lenders who also specialise in helping those with bad credit to help source the best finance deals and improve your chances of being accepted.

Start your process of being accepted for bad credit car finance by taking advantage of our free credit check. This won’t impact your credit score, and can show you whether you’re likely to be accepted for finance before you apply. 

Then just fill out our two-minute application, wait for a decision, and pick your car! You can then pick it up from our dealership or have it delivered to you, and you can buy with confidence knowing it's covered by Warranty Solutions Group's standard warranty.