FAQs

You borrow money from a lender to buy a car and repay it over an agreed period with interest. The car typically serves as collateral for the loan, you may not own the car at the end of the agreement depending on the type of finance you choose.

Yes, but this will depend on the amount you are looking to finance, and the lenders available will be limited. For lower value vehicles this is normally not an issue, but it will take longer for you to pay off your finance.

The average deposit is usually 10% of the price, and on higher value vehicles the lender may ask for a larger deposit depending on your situation.

Yes, our concierge team have plenty of experience financing classics, just get in touch and they can arrange this for you. Please bear in mind that there is a minimum vehicle value of £30,000 for this service due to the limited number of lenders that will finance a classic vehicle.

Yes, you can finance a private sale, but the options for this are limited and there are requirements that must be met to be able to fund one, along with a minimum vehicle value of £30,000. Please speak to our team if you are looking to finance a private sale.

Yes, but it may come with higher interest rates and stricter terms. Some lenders specialise in bad credit car finance, we have a specialist division we can recommend you to if this is required.

Yes, many of our lenders offer finance options for electric vehicles.

The APR (annual percentage rate) refers to the total cost of your borrowing for a year. This will include any lender fees and interest for that year.

The representative APR is the APR that is offered to at least 51% of customers, so if the advertised APR is the same/similar to the representative APR, you know a majority of customers are getting the best rates available. Note that the APR you are offered could the same, lower or higher depending on your circumstances and the product.

Yes, but you may need to provide proof of income, such as pension statements etc. Our team will discuss this with you.

Yes, but you may need to provide additional documentation, such as tax returns and bank statements, to prove your income to the lender. Our team will discuss this with you.

Yes, refinancing is a very popular option for those coming towards the end of their agreement looking to keep their car. We have access to multiple refinancing options from our lenders, just speak to our team for a quote!

Yes, most agreements allow early repayment, but you may incur early settlement fees (usually 58 days of interest), but this is dependent on the lenders terms and the type of finance facility you take out.

Yes, but the settlement for that vehicle must be paid off as part of that purchase. Car dealers are well versed in this so will pay off the remainder depending on the part exchange price offered. If you are in negative equity you may be required to pay more towards the car to pay this off.

We can offer a ‘top-up loan’ facility to cover the difference if required, speak to our team for more information on this.

No, this kind of finance is not something our lender panel can offer.

Applying for car finance of any kind involves a hard-search on your credit report, which can temporarily lower your score -the effect is usually minor and short-term. We can also do what is known as a soft-search to prequalify you for a lender if this is preferred, speak to our team if this is your preferred option.

You can use our calculator to get multiple finance quotes in just a few taps, we show you the lowest APR and monthly payment options we have available from our lenders, for PCP, HP and HP + Balloon (depending on qualifying vehicles).

If you’d prefer, our team can walk you through the finance options we have available to you on the phone, via email, live chat or WhatsApp.

You can use our calculator to get multiple finance quotes in just a few taps, we show you the lowest APR and monthly payment options we have available from our lenders, for PCP, HP and HP + Balloon (depending on qualifying vehicles).

If you’d prefer, our team can walk you through the finance options we have available to you on the phone, via email, live chat or WhatsApp.

Approvals can take be instant, but can also take hours, or in some cases days (although this is a rare situation). In most cases our lenders will make a decision very quickly so you can progress your application, if anything further is required for approval our team will be in touch to get this sorted for you as soon as possible.

It’s always advised to compare your options, that’s why we offer you multiple lender options with our expansive panel, so you don’t have to shop around on your own.

Deposits typically range from 10% to 20% of the car’s value, some lenders may require a minimum deposit to be added to be able to borrow from them.

Overall, the entire process from application to payout can take anywhere from 24 hours to few days, to a week or more, this is dependent on the lender and product chosen, and how quickly you the dealer provide the necessary documentation.

For most of the applications we process though the average turnaround is a few working days

Yes, car finance is available for both new and used cars. Terms may vary based on the car’s age and condition. There are limits to what a regular PCP or HP agreement can finance, with older cars of higher value we can look to use a HP + Balloon agreement with some lenders (dependent on qualification terms)

Lenders are typically banks and credit unions, with some specialised lenders for specific forms of lending. We have access to a wide range of lenders from all aspects, our relationships with these lenders gives us a panel of options for you to choose from.

All lenders will require proof of identity, with some requiring more documentation dependent on the type of finance, your personal situation and the vehicle you’re looking to fund.

Your credit score, loan term, loan amount, and the lender’s policies all influence the interest rates that are available to you. We will always offer you the lowest available interest rate (APR) we have available for your circumstances. Our representative APR is the interest rate that the majority of our customers are offered.

Missing payments can lead to late fees, damage to your credit score, and potentially repossession of the car in some circumstances.

GMFV or Guaranteed Minimum Future Value is a pre-determined value given to a vehicle at the start of a finance agreement (not hire purchase) by the lender. This may also be referred to as a ‘Balloon Payment’.

A hard credit check is an inquiry that can affect your credit profile. This type of search will need to be performed for you to proceed with an application, if you are unsure on your profile, or if you would be likely to be accepted, speak to our team.

A soft credit check is an inquiry that does not affect your credit profile, often used for pre-approvals. This kind of check allows our team to review what you would be likely to be accepted on, without affecting your credit profile.

Car finance refers to a selection of financial products that allow you to purchase a car by spreading the cost over time, usually over 48 months. This typically offers a more affordable way to buy a car than buying outright.

What’s the difference between PCP and HP?

PCP: PCP is a popular, cost-effective way to finance a car with a flexible deposit and three end-of-contract options: keep, trade/part exchange, or return. Introduced in the late 90s, it defers the car’s value (Guaranteed Minimum Future Value – GMFV) until the end of the contract.

HP: Hire Purchase is a more traditional way to finance your car. You pay for the vehicle over fixed monthly payments (2-5 years), and ownership transfers to you at the end.

PCP is a popular, cost-effective way to finance a car with a flexible deposit and three end-of-contract options: keep, trade/part exchange, or return. Introduced in the late 90s, it defers the car’s value (Guaranteed Minimum Future Value – GMFV) until the end of the contract. Learn more here {link to PCP page}

Hire Purchase is a more traditional way to finance your car. You pay for the vehicle over fixed monthly payments (2-5 years), and ownership transfers to you at the end. Learn more here {link to PCP page}

Positive equity occurs when the value of an asset exceeds the amount owed on any loans secured against it. If the market value of your vehicle is higher than the settlement figure on your finance, you have positive equity. For instance, if your car is worth £15,000 and you owe £10,000 on your car loan, you have £5,000 in positive equity.

Negative equity occurs when the value of an asset is lower than the amount owed on any loans secured against it. If the market value of your vehicle is lower than the settlement figure on your finance, you have negative equity. For instance, if your car is worth £10,000 and you owe £15,000 on your car loan, you have £5,000 in negative equity.

Pre-approval means a lender has reviewed your financial information and offered you a specific loan amount and terms based on that. We can arrange this for you so you can then go out and shop with peace of mind.

Interest rates vary between lenders, and the type of finance agreement you choose. On our calculator we always show you the lowest monthly payment and APR options we have available for that vehicle so you can decide based on your own circumstances – we are the only broker that does this!

The minimum age for car finance in the UK is 18.

At Magnitude, we work directly with the lender to secure the lowest interest rates we can. You don’t pay us for our services so we can secure lower rates than most dealers. Our representative APR is 8.9% which means the majority of our customer that apply, get the advertised rate.

Yes, a substantial number of motorhomes and campervans are now being purchased using finance products. At Magnitude Finance, we work with a large panel of lenders that specialise in funding leisure assets for both consumer and business applications.

At Magnitude, we work directly with the lender to secure the lowest interest rates we can. You don’t pay us for our services so we can secure lower rates than most dealers. Our representative APR is 8.9% which means the majority of our customer that apply, get the advertised rate.

The majority of customers fund their campervans and motorhomes over 120 months (10 years), but we can extend the term to 180 months (15 years) depending on the age of the vehicle.

Yes, we can offer PCP and RV-based products, this will depend on the age of the vehicle and the customer’s occupation. This can be a great way of reducing the length of the agreement and is very popular in the business community, as these customers tend to fund leisure vehicles on shorter terms.

Yes, you may still be able to obtain funding. You stand a better chance of obtaining funding from Magnitude Finance than a dealership, as we have access to a wider range of lenders than most, who cover a greater spectrum of credit profiles.

Yes, the interest rate is fixed for the term of the agreement, so you will know exactly what your monthly payment will be each month without any fluctuation.

No, the only funding options we offer are secured against the asset.

Yes, speak to one of our team to discuss your options.

Yes, when our team arrange the finance for you, some lenders may ask if you have a pension or another income in place for when you do choose to retire.

Unfortunately not, we do not have access to any lenders that will fund private sales for leisure vehicles. Finding a similar vehicle at a reputable dealership will normally offer a more secure purchase and open up many more lending options.

Yes, you will just need to secure a settlement figure from your lender before you do so (we can do this for you). You can also pay lump sums into the agreement to either reduce the term or lower your payments – each lender has their own terms regarding overpayments, speak to our team for more information.

 Yes, you can make a joint application. This is a popular option with leisure vehicles, please note both applicants must live at the same address.

No, you can’t finance a vehicle you already own, but we do have an equity release facility available to qualifying customers, allowing you to take equity out of your vehicle and pay it back in monthly payments (similar to equity release with a home). This is a specialist product and is unique to every situation so please speak to our team for more information.

 Yes, we have access to lenders that will offer funding with a provisional licence.

You can part exchange your vehicle with the dealer, any equity left in the vehicle can then be used as a deposit for your new vehicle.

When you trade in your vehicle, the dealer will normally settle the finance for you. If your vehicle is worth less than the settlement figure of your agreement you will need to cover the difference.

Yes, you can obtain funding with zero deposit, this will limit which lenders we can work with. The typical deposit for a vehicle is around 10%, this would open up options with more lenders.