Car Finance can initially be split into two categories. Regular Car Hire Purchase for customers with a good credit rating, and bad credit car finance for those with a poor credit rating. The latter used to be difficult to find, but today there are almost as many lenders in the bad credit car finance market as those offering car finance for customers with good credit.

 

This is because regular finance companies offering car H.P have found themselves having to offer lower and lower interest rates to attract new customers. There are too many of these companies competing for the same customers. When interest rates are very low, finance companies have to underwrite using great caution.

This means that customers who would ordinarily have been offered a loan are getting declined. So the market in second tier finance has grown significantly.   

 

Now if you have a good credit rating, you will find that car finance as with other loans have become extremely cheap. It is now possible to find companies offering 0% APRs to attrract your business! The finance being subsidised by the vehicle manufacturers and offered to their dealerships. We haven't ever come accross 0% for customers buying used vehicles.  

 

If you want to arrange your own car finance prior to visiting a car dealership or to use for buying a vehicle privately, the Internet offers some great low rate deals.

You can view some of the UKs best known providers in our Car Finance category