Finance Help Page
What is car finance?
Car finance is a credit agreement you make with a lender to purchase a car. You'll be expected to make monthly instalments for the duration of the contract until the vehicle is paid off.
What are the different types of car finance?
Yes, there are different types of car finance. The popular car finance options are hire purchase (HP) finance and personal contract purchase (PCP) finance.
HP finance involves making payments totalling the car's value plus interest. Once all the payments have been made, the ownership of the vehicle will be transferred to you.
With PCP finance, payments include the car's value and interest plus additional factors such as depreciation, mileage limits, road tax and maintenance. After all the payments have been made, you can either return the car or you can make one final payment to have ownership transferred over to you. The final payment covers any future value the car has.
Am I eligible for car finance?
Your eligibility for car finance is based on the following factors:
- Your credit score
- Have all the right documentation
- Have a deposit that's around 10% of the car's value
- Be sure that you have regular income to make the monthly payments
- To increase your chances, consider getting pre-approved first
Can I part-exchange my car as a deposit?
Yes, it is possible to part exchange your car as a deposit. You'll first need to get a valuation for your vehicle, then make arrangements to use the value as a car finance deposit.
How does getting finance work?
To get car finance, you'll need to submit an application with your personal information, including:
- Proof of ID
- Proof of income
- Minimum three years of address history
- Minimum three years of employment history
- Bank details
As well as the above, you can make your car finance application yourself or apply via a used car dealership that will secure the financial loan on your behalf.
When you make a car finance application with Angus MacKinnon, you'll be able to select your credit score, the amount you want to borrow and the contract length. We will be in touch as soon as we've reviewed your application.
If you'd like first to determine if you'll be accepted, you can also use our free credit score checker. This will conduct a soft search into your credit history and won't affect your credit file.
What is APR?
The Annual Percentage Rate (APR) is the total cost of what you're borrowing for a year, and takes into account the standard fees and interest.
How quickly can I get a loan?
Depending on the application process, you can get approved in minutes and a loan within an hour.
To make things easier, it's best to prepare the right documentation and have your deposit and first payment ready.
Can you buy second-hand cars on finance?
Yes, you can purchase a used car on finance. At Angus MacKinnon, we are a used car dealership that can act as a credit broker to get you the most appropriate finance quote for your budget.