Whether you're looking for your first car, family car or even your absolute dream car, getting your car finance through Red Potato couldn’t be easier. We’re all about making the process of securing car finance as stress-free as possible. We have written plenty of guides for our Help & Advice section, for instance our Jargon Buster guide which helps to break down all the terms you’ll come across in the car buying process.
This article at a glance
- What is car finance? What are the different kinds of car finance available?
- How Red Potato make easy car finance a reality – our application process
- Ways you can improve your credit score, starting from today, you can make strides to giving you a better chance at getting approved in the future
What is car finance?
Car finance refers to a loan you take out for the specific purpose of buying a car. The main reason people get car finance is to spread out the cost of the purchase.
What types of car finance loan are available?
Car finance generally comes in three different types:
- Personal loans: one option is to take out a Personal Loan, borrowing a certain amount of money over a set period of time and making monthly repayments. This means that you own the vehicle as soon as the car dealership gets the money – , and you’ll be able to sell the car on if you wanted to.
- Hire purchase: sometimes called HP, this is where you make monthly payments to a car finance company while hiring the car from them. After the final payment you would then own the car. You generally have to put a deposit down, which is usually around 10% of the loan amount.
- Personal contract purchase: this is similar to a hire purchase in the sense that you put down a deposit and make repayments every month – and the higher the deposit the lower the payments will be. Repayments tend to be lower in general compared to hire purchases, as rather than paying off the value of the car brand new, there’s a balloon payment at the end of the term. Then you make a choice: you can either pay off the balloon payment and keep the car or return the car.
How we make easy car finance a reality
If you haven’t applied with us yet, you can rest assured we believe that you should have the opportunity to buy a car – and that’s true even if you have a less than perfect credit history – so long as you’ve shown you can keep up to date with payments. We try our best to find a good solution, whatever the individual circumstances – of course, we can’t lend to everyone – but we try to help where we can.
Our goal is to make getting finance secured in a way that’s stress-free. So, we like to keep the process simple, and keep you informed every step of the way.
- You submit an online application
- We’ll need to see just a few basic documents, such as:
o Your bank statements from the last 3 months
o A copy of your full UK driving license
o A DVLA validation code
o Most recent payslips if employed
- We then review your application and get in touch with you by phone to let you know if your application has been approved.
Easy car finance with bad credit
As a car finance provider initially set up to help those in debt management plans, we have the expertise and resource to help those looking for car finance with bad credit. We can provide car finance even if you have no deposit, have a CCJ, an IVA, have previously been declared bankrupt or are self-employed.
When reviewing your application, we will consider your credit score, your current financial situation and your ability to repay the loan.
I want car finance, what should I do next?
There’s loads of help we can offer if you want more advice, you can:
- Visit our Help & Advice page [link: https://www.redpotato.co.uk/help-advice/]
- Use our Finance Calculator to see what you could get [link to https://www.redpotato.co.uk/car-finance/car-finance-calculator/ ]
- Take a look at our cars for sale [link to https://www.redpotato.co.uk/bad-credit-car-dealer/car-search/ ] to see what kind of car you could get within your budget
- Try our Online Chat, where we can answer some more specific questions
- Give us a call today, to see how we can help, you can call us on 0800 197 9758