Guide to car finance
At Oodle, we understand that a new car can carry a big cost, and waiting to save might not always be an option – especially if your current car breaks down or your family circumstances change. Car finance can be a good solution, allowing you to spread the cost over months or years. However, it's important to explore your options before committing to credit.
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Types of Car Finance:
Here we take a look at the different types of car finance available.
Unsecured Personal Loan
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Hire Purchase (HP)
With hire purchase, you usually pay a relatively low deposit (normally 10%) before paying off the cost of the car in fixed monthly payments. You won't own the car until the final payment and any additional fees.
Personal Contract Purchase (PCP)
An option to pay a deposit (normally 10%) and then make fixed monthly payments. You’ll have options to buy or return the car at the end of the contract with a balloon payment. Interest rates may be higher, and it’s important to make sure you understand the terms of the contract before you sign.
Leasing
When you lease a car, you’re paying for the use of the car without ever owning it. It’s a bit like renting and can be a flexible option, especially if you like changing cars frequently. Monthly costs may be lower, but extra charges can apply, for things like additional mileage or 'excessive wear and tear' fees.
(once you’ve paid the option to purchase fee)
An unsecured personal loan is the only type of car finance we offer to customers applying via our website.
Getting accepted for Car Finance
Maintaining a good credit score is the best way to improve your chances of acceptance. Sticking to monthly payments, using a budget, avoiding too many credit commitments, and check your credit report regularly to help keep your score in good health.
When you apply for a car loan with Oodle, we’ll let you know if you’ll be pre-approved for credit without affecting your credit score.
You can find out more about credit scores and credit checks here: