Car finance calculator

Good credit
Bad credit
Amount to borrow:
To repay over:
5 Years
Car finance rate XX% APR
Cost of credit £ XXX
Total repayment £ XX,XX.XX
48 monthly payments of
£ 245 /mo

Representative example - Borrowing £5,500 over 4 years with a representative APR of 19.8%, and a deposit of £0, the amount payable would be £162 per month, with a total cost of credit of £2,282 and a total amount payable of £7,782.

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If you’re considering buying a new car on finance and believe you have a poor credit history, the idea of guaranteed car finance can seem like the perfect solution. However, the claim that any car loan or finance can be guaranteed is highly misleading, and simply a marketing ploy that many lenders and car dealerships use to attract new customers.

It is legally impossible to offer guaranteed car finance to everybody, no matter how much we may want to. don’t offer guaranteed car finance but thanks to our panel of lenders, we do offer competitive car finance, even for those with bad credit.

Loans can never be guaranteed

Anytime an application for finance or a loan is made, the lender performs a series of checks on the customer in order to ensure that they will be able to meet payments. This includes looking into their credit history and income. Some companies may be more flexible than others and willing to provide capital to people with even very poor credit ratings, but ultimately they still have to perform checks to ensure each individual they lend to will be able to repay them.

Many companies even charge administration fees for their supposed guaranteed car finance services, but ultimately this results in the customer unnecessarily paying for a service that they may be turned down for if they fail to meet the lender’s criteria. Whilst the company may provide loans or finance to a majority of their customers, this doesn’t mean to say it is guaranteed since each individual is still subject to these checks.

Unethical marketing

Many reputable lenders and car dealerships in the industry look upon guaranteed car finance offers as incredibly unethical as it misleads the customer. In fact, according to the Consumer Credit Regulations, the practice of advertising guaranteed car loans is illegal ( Companies can only do so if they truly offer finance to every single customer with no conditions regarding the credit status of the debtor.

As mentioned previously, it is highly unlikely lenders will do this. At the very least, they will look into the debtor’s income in order to ensure they are earning enough to make repayments. These companies would go out of business fast. Despite this, many companies continue to advertise in this way.

Guaranteed low interest rates

Since companies that offer guaranteed car finance give the impression that they will finance anybody, no matter what, they tend to have incredibly high interest rates to compensate for their supposed ‘no questions asked’ policy. It is crucial to check the interest rates of any loan or finance you take on in order that you fully understand how much extra you’ll be paying back, but be particularly cautious of those who offer guaranteed loans. In general, it is best to steer clear of any dealership or lender who advertises guaranteed car loans and finance.

Choose a reputable lender instead; even if your credit history is poor you still stand a good chance of finding the right, honest car financing option for you and we can help you do so with our instant decision car finance application.

Why Carplus?

  • We approve car finance with no deposit needed;
  • We offer car loans bad credit no deposit;
  • We can help if you have poor credit history;
  • We can help even if you’ve been refused car finance elsewhere;

To see if you would qualify for a 0 car finance, please check our online car finance calculator and see how much you could borrow, your monthly repayments and maximum loan amount.

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