Help & Advice

PCP finance plans and adverse bad credit history

Is it possible to get a brand new car on a PCP even as a discharged bankrupt of 15 months. I have a pretty poor credit history.

Robin Long


Answer

Hi Robin, getting a PCP for a brand new car maybe tricky with your credit history. What car do you want, what's your monthly budget & how much deposit do you have?

We do have a handful of potential lenders that may be able to help you get a PCP with a bad credit history but you'd need a minimum of 10% deposit. Are your current credit accounts up to date and being paid on time? If so, please make an application when you get a minute.

If approved (there's no guarantee at this stage) we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

Answer correct as of September 2016

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Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

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More related questions

Hi Rachel Yes my current history is up to date and clean and slowly improving. The car i had been looking at was a mini clubman cooper s. I have a £1000 deposit and can do monthly payments of £400 to £450 per month. I am willing to look at the used market if necessary but would then like to put less or nil deposit down.

Answer

Hi Robin, thanks for the response. The good news is that you're currently up to date. The only thing to do now is make an application on the site and we'll see if we can get you approved for PCP car finance with adverse credit. Kind Regards, Rachel

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my car is neary up of its pcp contract.and has been well looked after and made a bit of profit if was to sell privately what advice could you give?

Answer

Hi Phillip, i'd advise to get your car up for sale as soon as possible as it may take a while to sell. You don't want to be in a position whereby you have no buyer for your car and the finance company are chasing you for the settlement figure.

If you do sell the car privately i'd get the buyer to clear the finance settlement directly with your finance company so that the case is closed from their point of view and i'd then get the difference (profit - if there is any) transferred to you. If you don't get a private buyer relatively quickly i'd part exchange the vehicle at a main dealer for the best price you can get and obviously get yourself into a new car. If you didn't want another car you can just hand the vehicle back.

Please make an application for finance when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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hi Rachel thank you for that. will the finance company refinance the car again or not and is it possible to have 2 cars on finance if my credit rating is good to excellent

Answer

Hi Phillip, i don't see why not. As long as you've kept your payments up to date with them they should re-finance the amount remaining. If not please apply with ourselves.

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Hi, i'm looking to get a PCP on a £47,000 car with me placing a £15K deposit down. My scores are different with Experian and Equifax? They are both classed as fair - My Experian credit score is 869 and equifax is 417. What's the chance of me getting accepted? I'm currently self employed and can prove my income. Is my credit score good enough to get approved for this amount? I have no missed payments on my file and all accounts are in green and i have no large balances. Thanks, Dan

Answer

Hi Dan, as you have such a large deposit and you say you have good credit there should be no reason as to why we can't help you. Please make an application for your PCP car finance and we'll be in touch asap. Regards, Rachel

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Hi, I am wanting to organise a car on a pcp for my daughter who is 18 but, i have a poor credit history. I orginally went through a debt company to pay off my bills but ended up being messed around so took the problems into my own hands and am now paying them off direct and have been regularly paying for some time. I am worried about applying for a pcp only to be knocked back and then affecting my credit history. Please can you advise further of my choices. I have been looking at toyota or citroen c1?

Answer

Hi Lisa, thank you for your question. The likelihood of getting a PCP with bad credit is very low to be honest. You won't get approved by main dealers for a new car in your situation.

We do have bad credit finance lenders who could help but the maximum you'll be allowed to borrow will depend upon your income. Would you have a deposit or part exchange to place into the deal?

If so, please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Hi Rachel, I am thinking about taking out finance through Seat for a pcp arrangement. I checked my credit rating myself through experian and shows as a rating of 581/1000 which shows in the poor category. There are 3 old debts showing as defaulted but these were paid off in full and I do not owe anything on these debts anymore and they are from a couple of years back. In your opinion what would be the chances of obtaining finance through seat in these circumstances and if not, what alternatives are available?

Answer

Hi Dave, to be completely honest you would be very, very lucky to get approved with Seat as they will only take on people with immaculate credit. You won't get a lease or a PCP for a new vehicle so the other option you have is to potentially purchase a used Seat that is within manufacturers warranty.

Please make an application when you've weighed up your options and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Hi, I recently applied for but failed to get credit through BMW finance. The salesman was surprised as I earn £2100 per month after tax etc, own my home and have lived here for over 8 years. I have also worked at the same place for ten years. On checking my credit reference I noted that my partner had been late in paying our second mortgage back in March this year and previously in March 2011. I suspect this is what caused the fail - result dream car lost! I have two credit cards both near their limits but have never missed a payment on these or anything else over the years. My partner has a bad credit rating, she is currently in a debt management plan, but has no ccjs etc. What would be my chances of getting credit elsewhere? The car was a new 3 series M Sport and I would have been paying £320 per month via PCP. I was also putting down a deposit of six thousand pounds using my current car as a trade in.

Answer

Hi Jim, as you have a good income, a large deposit and a good credit history we should be able to get you approved for a BMW. Would you however consider a 6-12 month old car rather than a brand new one?

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Hi, thanks for the response. To be honest I would prefer a new car, however if it was the right model and had the right toys I would consider a six month to a year old car. The main issue would be the cost per month, is there any estimate you could give me? Also, the dealer actually ordered the car before I was refused finance and I currently have a £300 deposit down. The car is due in at the end of September. Is there any way another finance company would simply take on the car and I then pay them? I can pay a bit more than the original PCP deal but not a huge amount more. You also say good credit, if so why was I refused, I just assumed as my partner had missed the payments on the joint second mortgage that this affected me and my rating? Apologies for the length of this post. Regards, Jim.

Answer

Hi Jim, with your deposit amount we could get payments in the £350 region if we can get you approved for a PCP. From what you said the majority of your credit is good however you are linked to this second mortgage with your partner where there is missed payments so i'm reasonably confident that this is the reason as to why you have been declined. Not unless BMW think you're over committed but i couldn't comment on that at this stage.

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Hi, thanks again for the quick reply. What kind of spec car would the £350 per month be? I am looking for a 3 series M Sport with a couple of extras. Would this be a new car as you previously mentioned or a six months to a year old, the new M sport 3 series only came out in July. If new and the car I am after I would definitely be interested in pursuing this. What would be my next step? Thanks.

Answer

Hi Jim, if approved we provide a no obligation quote and you're free to choose a car from any reputable UK dealer.

Please make an application when you're ready.

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Hi Rachel, I am looking to get a new car on PCP and have recently had 'fair' credit due to the amount of o/s credit on my files. I was knocked back by a credit card company recently however last month I remortgaged and paid all my debts off however experian has not brought this up to date yet. Should I wait for them to do this before applying as I'm worried I'll get knocked back? Thanks

Answer

Hi Lorna, i'd advise you to wait for your credit profile to update before applying as it'll look good that you have consolidated and settled a few accounts - especially if you have just been declined for a credit card too. Where will you be applying for a PCP? Rachel

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Hi, I'm looking to get finance on a £17000 BMW but was declared bankrupt 3 years ago and still only have a credit score of 650 on credit expert. I have a total of £3200 to put down which includes my current car and can now easily afford the payments of £270 per mont but worried I will be declined?

Answer

Hi Anna, i have one company in mind which may be able to help as you have a large deposit but a poor credit history. A PCP is possible but the rates you receive will be higher than those available on the high street. Please apply when you get 2 minutes and provide me with your reference number. Thank you, Rachel :-)

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Hello, i'm a newbie here so can you help in anyway? I have a credit score of 506 (very low) and tried to buy a brand new Toyota Aygo on a PCP a few days ago and was rejected. My poor credit was due to being young with no commitments some years ago but now i have grown up, got 3 kids. I have only got my old car as a deposit (£250) and can easily make monthly payments of around £150. Where do i go from here?

Answer

Hi Chris, thank you for your question. We'd love to be able to help and we do have lenders on our panel that approve people with past credit problems. All you need to do is apply, get approved, choose your car from any dealer and we'll sort the paperwork out. Please apply when you feel ready. Rachel

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My IVA finished in Feb 2013 so will be on my credit for another 6 months. My mortgage is up to date and my mobile phone bill has always been paid. Would I be able to get PCP car credit

Answer

Hi Nigel, as your credit accounts are now up to date and you have completed your IVA i'm reasonably confident we can get you approved for car finance.

We do have lenders that also offer PCP's to people with a less than perfect past. Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Hi, I am looking to get a new car on finance, however I have had a default status on my credit file for the last three years (fully paid off in November 2012 - default amount around £16000).

However, i don't want to be faced with the embarrassment of being rejected from the showroom. I know credit scores are pointless as the lenders look at your credit history, but I was wondering would I be able to get credit (most importantly with good interest rates). Last time I looked at my Experian credit score it was at 911.

Answer

Hi Steve, thank you for your question and apologies for the delayed response.

We'd definitely be able to get you approved and you do seem to have a good credit score, but the fact is that the lenders we deal with will still be able to see the default on your file even though it's settled. The fact that it is settled is good news but you won't get high street rates unfortunately.

As i said though i'm reasonably confident we can get you accepted for new car finance and once approved we provide a no obligation quote and you can get a car from any dealer in the UK. Please make an application when you're ready. Kind Regards, Rachel

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Hi, I am looking at PCP as an option to buy a new car. My credit score is about 600 I think. I could possibly have a deposit of about £3000 but would rather put in a lower deposit if at all possible.

The car I was looking at is around £18500. Do you think I could get PCP and also, roughly what do you think the payments would be for someone with my credit rating? Thanks, Mark

Answer

Hi Mark, thank you for your question.

I am confident we can help as we do have a lender that helps people that have low credit scores and a large deposit obtain PCP deals. The deposit amount you have is just about right for the value of the car you wish to get.

The rate you receive will be between 16% & 19% i'd imagine but without seeing your credit profile i cannot say for sure. Please apply when you get chance. Have a good evening. Rachel

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Hi Rachel, I hope you can help with my question!

I have a poor credit rating but was wondering what my chances of securing a PCP were?

I earn good money, approx £2100 after tax per month and could also put down a £2000 deposit to. Would this help? If not, what other avenues could I look at? Cheers

Answer

Hi Stevie, thank you for your question.

As you have a large deposit and a decent monthly income there is a chance we can secure you a PCP deal even though you don't have a perfect credit history.

I do have a couple of lenders in mind however, if you are declined with them there is still the option of car finance / hire purchase. This basically means you owe the car once you have made all of your payments. "HP" is typically financed over 4 or 5 years. So, in a nutshell we do have other options.

Please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

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Hi, I'm looking at getting an Audi A3 on a PCP putting £4000 down as a deposit. My Experian score is 900 but i do have 3 defaults on my credit account all over 3 years old. Will i be able to get this credit?

Answer

Hi Ben. thank you for your question.

I do know Audi can be very selective on who they offer PCP deals to however you may well get accepted as your defaults are over 3 years old.

I am confident we could help though as you have a large deposit and a current good credit score. If you get declined by Audi please make an application with us and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Rachel

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Hello, I am looking to PCP a BMW at £28,000 and I have £8000 deposit.

If I go for a PCP then change my car in 2 years will I lose my deposit or will this be equity when I come to change? Thanks, Carl

Answer

Hi Carl, thank you for your question.

You won't lose your deposit as such as the £8000 is being used to reduce your monthly premiums and the final balloon payment that you need to pay at the end of the contract.

If after 2 years the car is worth more than the amount you owe then you can part exchange the vehicle and use the equity as a deposit towards a newer car. Please make an application with us as we can offer some market leading PCP deals and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Rachel

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Hi, I am looking to buy a used BMW on PCP finance, My credit file is showing as 876 which is fair, this was previously in the 900s so good, but my credit card balance is near the limit so has taken a bit of a hit.

I currently have 4 credit accounts running and I have had no missed payments, defaults or late payments at all. Would this cause problems when applying for finance? Kind Regards, Kieran

Answer

Hi Kieran, thank you for your question

As you have a decent credit score and 4 active clean credit accounts i'm very confident that we can get you accepted at a lender who offers attractive rates on PCP's. The fact that one credit card is near its limit shouldn't effect the decision

Please make an application and once approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Hi there, I'm looking to get a car lease finance through my limited company as I only take a small personal drawing at the moment.

The company is coming up to two years old with no debts, no liabilities and no assets except for around £6000 of unpaid invoices and £3500 cash in bank. It turns over around £3500 PCM with around £1000 surplus every month.

I am the only director and I was discharged from bankruptcy over 3 years ago now and kept up 2 lines of credit for a number of years. I am looking to get a small car for around £9000 at about 20k miles per year. Can you help me with this? Many thanks, Paul

Answer

Hi Paul, thank you for your question.

However, we can only supply finance to individuals rather than businesses. We can help ex-bankrupts get car finance though and all we'd need to see is 3 months bank statements proving that you could afford the monthly payments, a copy of your driving licence and a proof of address.

Would you consider a nearly new or used car and financing it in your own name? If so, please make an application here and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Rachel

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Hello, I have been refused finance by Santander on a new car but, I have a excellent credit score of 998.

However, I defaulted on a couple of credit cards a few years ago, one is paid off and the other I owe £700 on. I recently paid off the finance on my current car too which was 2 years early.

The car I want costs £13200, I have £1500 deposit and able to pay £210 a month. Do I have a good chance of getting PCP finance at a good rate?

Answer

Hi Peter, thank you for your question and apologies for the delayed response.

As you have a decent deposit amount, a good credit score and a clean recent credit history i'm confident we can get you approved.

Whether we can get you a PCP deal or not remains to be seen as you have past defaults. We'll certainly try though. I'm confident of getting you accepted for hire purchase though where you can borrow the £11,700 over 4 or 5 years.

Please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Rachel

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Hi, I would like to get a Mini Coupe on a PCP deal.

At present I have a credit rating of 855 on Experian but i also have 3 defaults due to some problems in 2011. My mortgage is up to date and 3 of the debts were passed to debt collecting agencies although my debt management company were paying the agreed amounts. Do you think I may be eligible?

Answer

Hi Diane, thank you for your question.

You seem to have a fair credit score but due to your past problems and that fact that you're in a debt management plan we'll struggle to get you a PCP deal. We can however try and secure you a car finance deal (hire purchase) where you'll own the car at the end of the agreement. The fact that you're a homeowner is positive news too.

Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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I was on a DMP but came off of this around 2 years ago, and managed through the payments myself meeting what was required. The majority of this debt has now been cleared and I am in a financially secure position earning around £2,300 a month. I know my credit rating will be poor for some time but I'm afraid to go to a garage and attempt to get a new car. My current car finance ends in December and in the 5 years I've had it, I never missed a payment or included this in my DMP.

Do you know if companies have an internal worthiness score for existing customers rather than using credit scores? So they could look that I've met every payment on time for 5 years and be willing to issue me a new finance against a car. I am looking for a car in the region of £13k and the equity in my current car would be approx £2k.

Answer

Hi Oli, Thank you for your question.

Most lenders will need to look into your credit history before offering you a loan I'm afraid, however this doesn't mean we won't be able to find you a lender!

We can help people that are currently in debt management plans, it all depends upon how bad your actual credit profile is and how much debt you have outstanding. As you are now on top of your credit and have a good regular income we may well be able to help you.

Please make an application when you're ready and if approved we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

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Rachel Wilson, Underwriting manager

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Rachel Wilson, Underwriting Manager

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Hitatchi

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender