ClearScore is a credit broker, not a lender
We’ll show you offers tailored to your credit score
You can see if you’re pre-approved before applying*
And you can even find your new car through some of our partners
*Pre-approval doesn’t always guarantee acceptance and is subject to lenders’ checks of your credit status.
If you’re thinking about buying a new car, you’re probably weighing up your options when it comes to paying for it too.
If you choose to buy your car using finance, you’ll have something called a credit agreement between you and the lender. This can be a flexible option that lets you spread the cost of the car over an agreed period of time, with interest.
There are lots of decisions to make when taking out a car finance agreement, and we’re here to make it easier.
Signing up to ClearScore means you’ll not only see car finance offers that are tailored to your credit score, but you’ll also be able to compare as many as you like before making your decision.
And you can even choose your car from some of our partners.
At ClearScore, we’ll show you hire purchase and personal unsecured loans.
The main differences between these two types of finance are that with hire purchase the finance company (a bank, building society, or other lender, for example) owns the car until you make the final payment. They'll pay the car dealership directly and you'll make repayments to the finance company.
They can sometimes offer lower interest rates because the car acts as security. They'll also be able to help you if something is wrong with the car.
If you choose to take out an unsecured personal loan, you'll own the car straight away. The finance company will give you the money to pay the dealership.
The agreement can be up to 5 years long
Most of our lenders won’t ask for a deposit
You’ll pay fixed monthly amounts and there’s no lump sum at the end
Your mileage won’t be restricted
The finance company owns the car until you make the final payment
The agreement can be up to 8 years long
You’ll pay fixed monthly amounts – you won’t need a deposit
There’s no lump sum to pay at the end
Your mileage won’t be restricted
You’ll own the car straight away
There are other types of car finance, like a Personal Contract Purchase (PCP) or Personal Contract Hire (PCH), so it’s a good idea to explore all your options.
We want you to be ClearScore sure about your choices so you can drive away with the car you really want. That’s why we show you offers that are tailored to your score - so you can explore your options before you choose your car.
It’s exciting to buy a new car, but it’s also a big commitment. You should always make sure you can afford the monthly repayments. To give you an idea of what you could be paying, here’s a couple of representative examples from two of our lenders:
Always make sure you can afford repayments.
You might have to pay more interest, but at ClearScore we work with lenders who specialise in helping you find the best loan for your score. Some of our lenders will offer secured loans which can sometimes be a better option if you have a bad credit score. Here’s a representative example from one our lenders, Moneybarn:
You’ll need to provide the lender with proof of ID, a driver’s licence, proof of address and current income, as well as your credit score. ClearScore can give you easy tips to improve your score and help you understand what makes it move.
That depends on what type of finance you choose. For example, if you choose hire purchase(HP) or personal contract purchase(PCP), the finance company owns the car until you make a final payment. But if you choose a personal loan, then you’ll own the car outright.
These options all have pros and cons and it’s important to choose the type of finance that’s right for you.
If you’re in a position to pay off your car finance early, you absolutely can. It means you could save on the amount of interest you’d otherwise pay. But, you should make sure it makes sense based on the car finance option you’ve chosen.
Yes - if a hard search is done. Usually, lenders will start with a soft search to confirm your eligibility and then perform a hard search when you decide to go ahead with the finance or loan agreement.
Just like other types of personal finance, keeping up with repayments is important so that you don’t impact your credit history. Read our article to learn more about hard and soft credit searches.
If you’re 18 or over, you’re likely to have access to car finance. The options you see will depend on things like your current income and credit score.
Sometimes lenders will have specific requirements for people they lend to. At ClearScore, our offers will tell you if you’re pre - approved or not. Whilst that doesn’t guarantee acceptance, it does mean you can feel more sure about getting a ‘yes’ when you apply.
Depending on your needs and financial situation, you might want a new car or a used one. Generally, a used car will cost less money because the car value has gone down over the years.
When you’ve found the finance option for you, some of our partners can help you find the car that’s right for you. If you’re still unsure if you should buy a new or second hand car, our article could help.