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<strong>Car finance</strong> made easy

<p>Yes, certain lenders will consider offering finance for a vehicle that is sold privately.</p>


Can I get car finance for a private sale?

Car finance calculator

<p>In general, you cannot simply transfer a car finance agreement to someone else. However, there may be other options available to you that meet your needs.</p>


Can you transfer car finance to someone else?

<p>When you’re applying for finance for a used car, it’s useful to have the relevant supporting documents such as information on your vehicle of choice, your financial details and proof of address and income. You may also need a deposit.</p>


What do you need to finance a used car?

<p>Car finance companies don’t usually contact employers to assess eligibility. However, in some circumstances, they might.</p>


Do car finance companies contact employers?

<p>The simplest way to find out how much is left on your car finance agreement is to contact your lender. Alternatively, you can calculate this figure yourself.</p>


How much is left on my car finance?

<p>The number of years banks will finance a used car for depends on the particular agreement you enter into. Usually, agreements are available for terms of between 12 and 60 months.</p>


How many years will a bank finance a used car?

<p>Car loans for used cars vary in length. Terms are typically between 12 and 60 months.</p>


How long are car loans for on used cars?

<p>A guarantor car loan is an agreement in which a third party (usually a family member or friend) agrees to guarantee the repayment of your loan if you fail to keep up with your payments.</p>


What is a guarantor on a car loan?

<p>Buying a used car with a finance agreement can be a good option. As with any financial agreement though, it’s always important to check the details carefully and to consider the pros and cons.</p>


Should you finance a used car?

<p>Yes, you can refinance your car loan. However, you should carefully assess the pros and cons of doing so before you make a decision.</p>


Can you refinance your car loan?

<p>Under certain circumstances, you can claim the cost of a car as a capital allowance, meaning you can deduct some of the vehicle’s value from the profits of your business before paying tax. However, strict criteria apply.</p>


Are car loan payments tax deductible?

<p>If you’ve decided to buy a used vehicle and are choosing to make your purchase with a car finance agreement, you need to know not only how much you can afford to pay each month, but over how many years you wish to repay the debt. As a result, you might be wondering ‘how long are car loans for on used cars?’</p>

<p>There are <a href="https://www.car.co.uk/media/guides/finance/everything-you-need-to-know-about-car-finance-types">many different forms of finance available</a> to car buyers of used vehicles, including Hire Purchase (HP), Personal Contract Plans (PCPs), and personal or fixed sum loans. With all of these options, the length of term is typically between 12 to 60 months (one to five years).</p>

<h2>Applying for used car loans online</h2>

<p>You can get an idea of how long you can pay your car loan over by <a href="https://www.car.co.uk/car-finance">using the services of brokers online</a>. Making an application like this is a quick and efficient way to find out what your options are. Typically you’ll need to enter an idea of what your credit history is (rated poor to excellent) and state how much you’d like to borrow over how many years.</p>

<h2>The longer the term the smaller the repayments</h2>

<p>As a general rule with new or used car loans, the longer the period in which you make repayment, the lower your individual monthly repayments will be. As you’re borrowing money over a longer term, you’ll be paying a larger amount of interest and therefore the total amount of you pay overall will be higher.</p>

<p>If you pay back your car loan within 12 months, the monthly repayments will be much larger, but you won’t pay as much interest. However, you might find smaller amounts more manageable over a 60-month repayment plan and be comfortable with paying more overall.</p>

<h2>The age of the used car you’re looking to finance</h2>

<p>When looking to get a car loan approved for a used car, the lender will take the vehicle’s age into consideration. Many standard loans from high street lenders won’t consider a car older than seven years of age, but online brokers often have access to groups of lenders willing to consider older cars, usually up to 10 years old.</p>

<p>In the case of classic cars or speciality vehicles, it’s worth getting in touch with finance brokers who can sometimes find you a lender willing to deliver finance for even older cars of 10+ years.</p>

<h2>Affordability and length of term</h2>

<p>Banks and finance companies will take into account your personal circumstances and credit history before offering you a specific length of term on your car finance. They need to be sure you’ll be able to make your repayments over the length of term. Proof of your regular earnings will be required, such as payslips or a copy of your bank statements showing your income.</p>

<p>If you can’t supply this, you can still acquire a car loan for your chosen used vehicle if you <a href="https://www.car.co.uk/car-finance">apply with a guarantor</a>.</p>

<p>Whenever possible, it’s worth saving up some form of deposit before applying for a used car loan as this will lower your monthly payments and potentially reduce the number of years you must pay back your loan over. This can mean you pay less interest and therefore less overall on your loan.</p>

<p>At Car.co.uk, it’s our aim to offer a convenient way for car buyers to access information on all aspects of finance. By providing an invaluable resource, our goal is to give car buyers the resources they need to choose the finance deal for their vehicle that they are fully satisfied with.</p>


<p>If you’re purchasing a used car with the assistance from a bank on the high street you might be wondering ‘for how many years will a bank finance a used car?’ The answer is that this may vary depending on a number of factors, such as your financial history and what kind of finance you are looking to take out.</p>

<h2>Making an application for finance from a bank</h2>

<p>If you’ve got a good history with your personal bank, then making an application for any term of finance can be a very convenient way to acquire lending support. The bank will already possess all your information, from your personal details to your financial history, such as savings, monthly outgoings and regular income.</p>

<p>You might find however that other banks offer better interest on finance than your personal bank and decide to apply with one of them instead.</p>

<h2>Buying a used car from a bank</h2>

<p>Buying a used car upfront in one payment with cash is always the most cost effective way of purchasing as it cuts out the interest you will pay, but not all car buyers can afford to do this. After cash buying, a car loan is the least expensive form of finance to secure yourself a used car.</p>

<p>You borrow a sum of money from the bank to buy your chosen vehicle and then you pay it bank over a typical term of 12 to 60 months. You pay in regular monthly instalments, which will include interest on your loan. When all repayments are made, the debt is settled and the used car is yours.</p>

<h2>Length of term affects size of repayments</h2>

<p>Typically with finance for both new or used cars, the lengthier the term over which you make your repayments, the smaller the size of your monthly payments will be. However, as you’re borrowing over a lengthier period of time, you’ll be in turn be paying more interest, so the total sum you pay will be higher.</p>

<p>If you repay your used car finance within 12 months, the monthly instalments will be higher but you won’t be paying so much interest, however you may find that smaller amounts can be more manageable for you over a 60-month payment plan, making this a more realistic option.</p>

<h2>Saving a deposit</h2>

<p>Prior to applying for any kind of car finance over any length of term, it’s worth considering saving up for a deposit to put towards your purchase on a used vehicle. By being able to offer a deposit, you’ll not only look like a better prospect to banks and other lenders, but you will be able to secure smaller monthly repayments.</p>

<p>If you’d still struggle to pay the size of monthly installments offered to you over a five-year plan (60 months), then saving a deposit for your car is a way of making your purchase more affordable. Possessing a deposit, you’ll need to borrow less to buy your car, so your monthly repayments will be smaller.</p>

<h2>Other forms of finance available from banks</h2>

<p>While known for providing personal loans, sometimes referred to as “car loans”, banks like many other lenders will offer different forms of finance. Two common options are Hire Purchase (HP) and Personal Contract Plans (PCPs).</p>

<p>As experts in the automotive industry, we’re perfectly placed to offer assistance and advice on all aspects of car finance here at Car.co.uk. If you’re looking for a finance agreement over a longer length of term to pay for your used vehicle, we’ll do our best to find you a match.</p>


<p>Guarantor car loans are often a good option for those who may not be offered other types of car finance. They are most commonly used in the case of younger drivers, who can struggle to obtain finance due to having very little or no credit history.</p>

<p>What is a guarantor on a car loan? In a nutshell, the guarantor exists to guarantee the loan company that the payments will be made. In theory, the guarantor is likely to do nothing but sign the agreement as long as this happens. If the borrower stops being able to pay, however, the guarantor is liable to make the payments in their place.</p>

<h2>How do you get a guarantor loan?</h2>

<h3>The applicant</h3>

<p>To obtain a guarantor loan - or another kind of car finance - the applicant must be at least 18 years of age. They will need to demonstrate that they have a regular income, so the company can be confident that they make the repayments. The applicant must also have a UK bank account, and they are more likely to be accepted if they are listed on the electoral roll.</p>

<h3>The guarantor</h3>

<p>The guarantor will usually be a family member or close friend of the applicant, because they are placing their trust in them. If the applicant does not make payments, the guarantor becomes liable for this. Unpaid debt will also affect the credit scores of both the applicant and the guarantor.</p>

<p>To be accepted as a guarantor, the individual will also need a UK bank account, as well as a good credit history. Owning a home is a condition of some lenders. Even where this is not necessary, you are more likely to be able to borrow a larger sum, and/or obtain a good rate of interest if the guarantor is a homeowner.</p>

<h2>The pros</h2>

<h3>Affordability</h3>

<p>Quite simply, a guarantor can make all the difference regarding whether a young person can buy a car or not. Because this lowers the risk of borrowing, lenders are often prepared to offer lower interest rates than they would if they the risk was greater. In turn, this can help the applicant to afford a car. This can particularly benefit those who need a reliable car, for example to get to and from work.</p>

<h3>Credit rating</h3>

<p>If an applicant takes out a guarantor loan and manages to make their payments in full and on time, this is very likely to make it easier for them to obtain car and other types of finance in the future. This is because paying off the loan helps them to build up a good credit rating.</p>

<h2>The cons</h2>

<h3>Credit score</h3>

<p>The credit score can also be a con of guarantor loans, because if the borrower defaults on payment, this can damage the credit scores of both the applicant and the guarantor. This means both parties could encounter difficulties with future borrowing.</p>

<h3>The home</h3>

<p>If neither party pays the guarantor loan, the lender can take them to court to get what they are owed. Many lenders insist that a guarantor is a homeowner, because ultimately they can claim in court against any assets - which include the home. With such high stakes, it’s wise for both parties to consider their options very carefully before taking out a guarantor loan.</p>

<h2>Further information</h2>

<p>Guarantor loans are certainly worth considering if you are struggling to get accepted for finance agreements by yourself. However, as with any type of financial agreement, it’s important that you understand exactly what they involve before you apply. If you would like further information on this topic, don’t hesitate to get in touch.</p>


<p>If you use a car for business purposes, you may have wondered whether you can claim the costs as allowable business expenses. More specifically, if you borrowed money to buy a car, you may well be asking ‘are car loan payments tax deductible?’&nbsp;</p>

<p>The answer to this is possibly, but it depends on a number of factors.&nbsp;</p>

<h2>Are you self-employed?</h2>

<p>The first question you need to answer is whether or not you are self-employed. If you are not, then you will not be able to claim any tax relief on car loan payments.</p>

<h2>Are you buying the car for business purposes?</h2>

<p>If you are buying a car for business use, then you may be able to claim the cost as an allowable expense. If the car is solely for personal use, you are not permitted to claim in this way.</p>

<p>For example, if you visit clients in your car, then you do use it for business purposes. Conversely, if you do some sort of work at home and only use your car for non-business travel, then you cannot claim tax relief on any expenses related to the cost of running a car. This also applies if you only use the vehicle to commute to work.</p>

<h2>HMRC rules</h2>

<p>Her Majesty’s Revenue and Customs (HMRC) lays out very strict criteria that govern how cars used for business are treated for tax purposes.</p>

<h3>Capital allowances</h3>

<p>You may claim the cost of a car as a capital allowance. This means you can deduct some of the car’s value from the profits of your business before paying tax. This will therefore reduce your tax bill. To be classed as a car by HMRC, the vehicle must not be designed for transporting goods, and it must be suited to private use.</p>

<h3>Types of allowance</h3>

<p>The rate that can be claimed depends on two factors - the date of purchase, and the CO2 emissions. These will determine whether first year, main rate or special rate allowances apply.</p>

<h3>Personal use</h3>

<p>If you use the car for purposes that are not business-related, then how much you can claim depends on how much of its use is for business.</p>

<h3>Cars for employees</h3>

<p>If the car is provided for an employee, capital allowances can be claimed on the entire cost. If the employee can also use it for personal purposes, it may also need to be declared as a benefit.</p>

<h2>What type of accounting do you use?</h2>

<p>There are different types of accounting, and HMRC decides whether you are eligible to claim the costs of a car loan depending on which type you use.</p>

<h3>Traditional accounting</h3>

<p>You use traditional accounting if you record your income and expenses according to the date you invoiced the customer, or were billed. So if you invoiced a customer before the end of a tax year on 5th April, but were not paid until after the new tax year started on 6th April, that amount would be recorded for the previous tax year. If you use traditional accounting, it is possible to claim car costs as a capital allowance.</p>

<h3>Cash basis accounting</h3>

<p>Cash basis accounting differs from traditional accounting in that income is recorded according to the date received, rather than the date of the invoice. For the above example, the amount would be recorded for the current, rather than previous, tax year. Those who use cash basis accounting can also claim the cost of a car as a capital allowance.</p>

<h3>Simplified expenses</h3>

<p>Some business owners choose to use simplified expenses. If they do this, then flat rates apply to business costs for cars or other vehicles. The business mileage would be recorded, then at the end of the tax year the flat rate amounts would be included in the Self Assessment tax return. The car cost cannot be claimed as a capital allowance if simplified expenses are used.</p>


<p>If you’ve selected a pre-owned vehicle you’d like to purchase with support from a car loan, you’re ready to take the next step and try and secure a finance agreement. Before you start applying, it’s worth getting all the important information you need organised to ensure you’re prepared, but specifically what do you need to finance a used car?</p>

<p>Applications can be easily made online, but supporting documents are always requested. You can avoid wasting time by getting everything you require for your application beforehand.</p>

<h2>Information on your vehicle of choice</h2>

<p>Once you’ve found the used vehicle you want to buy, make a note of its make and model and registration along with any other information you can get hold of. If you’re buying your car through a private sale, it’s important that you get the full cooperation of the seller, as details may be required from them in order for your finance deal to be successful.</p>

<h2>Personal information on your situation</h2>

<p>You’ll typically be asked to rate your credit history from poor to excellent, so it’s a good idea to know how your current credit file looks to lenders. Companies like Experian and ClearScore offer a service enabling you to check out your current credit rating online. This can be an effective way to ensure you can answer these questions.</p>

<h3>Driver’s licence</h3>

<p>If you’re to be the registered keeper and driver of the vehicle, you will need to supply your lender with a copy of your valid driver licence.</p>

<h3>Proof of address</h3>

<p>You’ll need to supply proof of your address. This is a very simple check for anti-fraud purposes for the most part. Lenders prefer to see that you have been located at your address for at least six months, although they may consider a shorter term. Generally, the longer you’ve been resident, the better. A utility bill or bank statement are both considered acceptable.</p>

<h3>Proof of your regular income</h3>

<p>Evidence of your earnings will usually be required in most circumstances. This can take the form of monthly payslips or copies of your bank statements showing regular payments. In some circumstances, your employer could be contacted to verify any details you give so ensure you are truthful.</p>

<p>In order to act responsibly, brokers, lenders and dealers must check that you are able to afford to make your repayments on your used car loan.</p>

<h3>A photograph of yourself</h3>

<p>As a preventative measure against fraud, in some cases a photograph of yourself will be requested to cross check against the picture present on your driving licence.</p>

<h3>Guarantors</h3>

<p>If your credit rating is poor or limited, or you are unable to show proof of earnings you can still apply for finance on a used car, but you will need a guarantor. A guarantor is someone willing to vouch for you financially who will accept the responsibility of making your monthly payments if you are unable to during the term of your finance agreement.</p>

<p>Always make sure your guarantor is fully aware you are nominating them before making any applications, as it is their credit history that will be checked.</p>

<h3>Deposits</h3>

<p>While deposits are not required for finance agreements, they may be requested by dealers to secure a vehicle. Before paying anything to dealers or private sellers, contact your lender with all relevant details on the vehicle. The lender can then contact the dealer and carry out an evaluation before any money changes hands, and there is no danger of you losing a deposit.</p>

<p>At Car.co.uk, our ambition is to offer car buyers access to all the information they require when making a purchase through a finance agreement.</p>


<p>Used cars don’t have the negative reputation they once possessed. With many car buyers now updating their vehicle two to three years after purchase, there are plenty of used cars on the second hand market in great condition.</p>

<p>If you’re looking to buy a car through some form of finance agreement, you may be wondering ‘should you finance a used car?’. If the reason that you’re choosing the route of finance is your affordability, then choosing a used car over a new one is probably a good idea.</p>

<p>Ultimately, it must be your decision, but if costs are a concern, financing a used car might be worth considering. Buying a used car with finance is still the most cost-effective method of obtaining the use of a vehicle when you require it.</p>

<h2>Used vs. brand new cars</h2>

<p>When trying to decide whether to finance a used car, it’s worth looking at the main alternative – &nbsp;financing a new car.</p>

<p>For those in the market for a car, there are plenty of advantages in choosing a used model rather than a new one. The price of a new car is always considerably greater than that of used car. This can limit your choice on the model and make in your price range, not to mention what additional features you can afford to include. When buying a used vehicle, you can often find you’ll be able to afford a much better car than you could if you bought new.</p>

<p>A used car costs less overall, which means that your monthly payments will cost less as well.</p>

<p>Finally, in the initial two years after buying a brand-new car, it’ll depreciate in value by around 20-30%. If you purchase a used car however someone will already have taken the hit as used cars will not depreciate at this rate.</p>

<h2>Affordability and your credit history</h2>

<p>If you’re concerned about the likelihood of being accepted for finance, choosing a used car can be a good choice. Monthly repayments on a finance agreement for a brand new car will be far higher than on a used car and lenders may not trust you to be able to make repayments in a number of circumstances, such as poor credit, irregular income, or payment problems in your past.</p>

<p>The older the car, the lower the monthly payments are likely to be, which means that if you’re on a low income, you may be more likely to be considered a good applicant by lenders.</p>

<p>If your credit history is limited or poor, it can also sometimes make it difficult to obtain credit. If your monthly repayments are smaller, however, finance companies may be satisfied that you can cope with them suitably.</p>

<h2>Available warranties for used cars</h2>

<p>Some car buyers might be concerned about how to protect a used car but it’s now perfectly possible to purchase a warranty for a pre-owned vehicle.</p>

<p>There are a number of extended warranties readily available for used cars, so even if your vehicle is not brand new, you can get a warranty, which covers unexpected mechanical and electrical failures. These warranties aim to offer used cars with a warranty with a comparable level of cover to a new car warranty.</p>

<h2>Finance agreements for used cars</h2>

<p>If you’re looking for a car finance agreement for a used car, or would like some advice on the options open to your individual circumstances, you can get in touch with us here at Car.co.uk.</p>

<p>Our continuing goal is to offer a resource for car buyers with information on all aspects of car finance, and we’ll be happy to help with your questions and concerns.</p>


<p>If you’re planning to buy a car with the help of a car finance agreement, you will need to provide information on your current circumstances. With the many pieces of documentation requested by lenders, you may be wondering ‘do car finance companies contact employers?’ The answer is that in most situations, these companies only require proof of earnings - and they do not have to contact your employer in order to get this. They can check other documentation instead. However, in certain situations, a car finance company may contact your employer.</p>

<p>Read on for further information on why a finance company may contact your employer. You’ll also be able to discover the kinds of documentation and proof of earnings you may be required to present to a finance company in order to get your loan approved.</p>

<h2>Credit history checks</h2>

<p>Being accepted for any type of finance agreement is always more difficult if you have a poor credit history. This is because it means you’re considered to be higher risk. If you have a bad credit rating, a finance provider is more likely to wish to contact your place of employment in order to verify your earnings.</p>

<p>Car buyers who benefit from good to excellent credit scores are less likely to have their employers contacted to confirm their earnings.</p>

<p>You can improve your credit score before attempting to obtain credit in a number of ways, for example by ensuring your name is on the electoral register, making payments on any outstanding debts in full and on time, setting up direct debits, and using prepaid credit cards.&nbsp;</p>

<h2>Vehicle price</h2>

<p>Finance deals for used cars that are lower in price are less likely to warrant a call to an employer than a new vehicle of a higher value.</p>

<h2>Deposits</h2>

<p>Car buyers who can put down a deposit towards their purchase are less likely to be employment checked by car dealers and finance companies. Having a decent deposit can also secure you improved interest rates.&nbsp;</p>

<p>If possible, before applying for finance, try to save a sum of money for a deposit. Even a modest amount such as £500 could make a noticeable difference to what your application involves and who is contacted for information.</p>

<h2>Documentation when applying for car finance</h2>

<p>Prior to making any application for car finance, the first thing you need to do is gather together all the information you will need.</p>

<p>Typically, this will include a valid UK driving licence, proof of address (ideally a residence you’ve lived at for three or more years) and proof of your income.</p>

<p>Regardless of whether the finance company contacts your employer, they will want to see evidence of your earnings. This could be asked for in the form of copies of your payslips or bank statements that clearly show your income on a monthly basis.</p>

<p>If your income shows that you can afford the amount you will repay per month with ease, there might be less chance of them calling your employer.</p>

<h2>Affordability calculators online</h2>

<p>You can work out your affordability before even applying with innovative tools like our online calculator. In just a few minutes, you can estimate your eligibility for car finance by entering some simple information into the required fields. Add how much you would like to borrow, the length of term you wish to make your repayments over, and how much you can afford to pay in installments each month.</p>

<h2>Important information close at hand</h2>

<p>As experts in the auto industry, at Car.co.uk it’s our ambition to offer a premium resource for car buyers on all aspects of vehicle finance. If you’re concerned about your current eligibility for car finance, you can contact our specialist team for advice to put your mind at ease.</p>


<p>There are a number of reasons why you might want to rethink your car finance. Perhaps you believe you can get a better deal now than when you took out the original loan. Maybe you want to reduce your monthly payments, or you wish to keep the car beyond the end of an existing agreement. You may therefore be asking ‘can you refinance your car loan?’</p>

<p>The short answer is yes, you can refinance your car. Like all financial commitments, you should weigh up the pros and cons very carefully. The following guide may help you make up your mind.</p>

<h2>Reasons to refinance</h2>

<h3>Saving money</h3>

<p>You may be able to secure a new deal at a better rate of interest than your current finance package. This could lower your monthly payments, as well as the total sum payable.</p>

<h3>Car ownership</h3>

<p>If your current deal is a hire purchase (HP) or personal contract plan (PCP) agreement, then you might be able to own the car sooner if you take out a loan to settle the finance. You may also take out a loan to finance the lump sum, or ‘balloon payment’, due at the end of a PCP agreement if you want to keep the vehicle. This is therefore another form of car refinancing, and is an effective way to spread the cost of the balloon payment.</p>

<h2>Factors to consider</h2>

<h3>Time period</h3>

<p>If you take out the new finance over a longer period of time, the total amount payable may increase rather than decrease. Check carefully what you will pay in total before you take out a new agreement.</p>

<h3>Secured vs unsecured loans</h3>

<p>If you take out a loan which is secured on the car, then you still do not fully own the car until the loan is completely settled, because the lender can claim ownership of the car if payments are not made. With an unsecured loan, you would become the car’s owner from the outset.</p>

<h3>Extra interest</h3>

<p>If you refinance your car at the end of a PCP deal, then you will carry on paying interest.</p>

<h3>Negative equity</h3>

<p>A car’s value tends to fall quite quickly after purchase. If the value of the vehicle depreciates more quickly than you make payments, then you may owe more on the car than it is worth. This often happens with car finance, and resolves over time, but if refinancing puts you into negative equity then this may affect the interest rates you’re offered. It may also have some bearing on how willing lenders are to offer you a deal at all.</p>

<h2>How does refinancing work?</h2>

<p>The new lender would provide the money to enable you to pay off the existing finance to the original lender, and you would enter into a contract with the new lender.</p>

<h2>Do I have to change lender?</h2>

<p>Many people who refinance their car loan do sign up with a different lender, but you may not need to do this. You may be able to secure a new deal with your existing lender. To do this, you can contact the lender directly, or use a car loan broker who may negotiate a new deal on your behalf.</p>

<h2>Would refinancing affect my credit score?</h2>

<p>It’s wise to consider your credit rating, as it will determine your chances of securing future finance. As long as you have kept up with payments on the original finance agreement, and continue to do so with the new agreement, your credit score will be protected. In fact, if you have a good payment record with the original finance provider, this might even help you secure a better rate of interest when refinancing.</p>


<p>Car finance agreements and car loans can last anything from one to seven years. We understand in making monthly payments over a lengthy period of time like this, it’s possible to lose track of just where you’re up to in terms of paying back the total cost of your car loan. You might be asking yourself ‘how much is left on my car finance?’ The simplest way to find out this information is to contact your lender, but there are other ways do to it.</p>

<h2>Calculating the remaining amount yourself</h2>

<p>If you want to calculate the amount left to pay on your car finance, you can work it out yourself by following these steps:</p>

<p>Read through your copy of the finance agreement, because all the information you need should be available. If you can’t find any of the figures you require, contact your lender for further information.</p>

<p>The first two items of information you require to calculate what is left on your car finance agreement are the amount you borrowed and the amount you pay back per month in your instalments, including interest.</p>

<p>Either by counting from the date of your first payment to the present, or reviewing your bank statements or online records, you need to count how many payments you have already made.</p>

<p>Add the interest you pay to your principal loan amount to find the actual amount of your loan. Multiply the total number of payments made so far by the amount you pay each month, and then subtract this figure from your loan including interest to discover what is left to pay on your car finance.</p>

<h2>Online calculators available for your use</h2>

<p>There are many calculators available online and they are free to use. They allow you to discover the outstanding balance of your loan. This can be a quick and straightforward way to work out what is still owed.</p>

<p>To utilise these calculators to find how much is left on your car finance, you will need to be know all relevant information regarding your agreement before you begin. For example, you will need to know the full amount of the loan when you took it out, how much your monthly payments are, the annual interest rate, and how many payments you have made to date. With this information, you can quickly calculate what remains to be paid on your car finance.</p>

<h2>Settling your car finance</h2>

<p>If you are seeking to know how much you have left to pay on your car finance because you would like to return the vehicle and end your agreement, remember you must have paid back at least 50% of your total loan.&nbsp;</p>

<p>Should you decide to keep your car, you can pay off any outstanding amounts to end your deal – simply contact your lender for a settlement figure. The rules differ when it comes to settling car finance agreements early depending on the type of deal you have, and bear in mind you may be charged a fee for doing this. It’s wise to contact your lender to find out more about what’s involved before you make any decisions on this.</p>

<h2>Further assistance in calculating your remaining car finance</h2>

<p>If you have any concerns regarding your car finance and how much you still have left to pay, you can talk to our team of experts. Here at Car.co.uk, as specialists in the auto industry, it’s our aim to assist car buyers in all aspects of finance and to provide advice and support. Our specialists will be happy to answer any questions you may have and to provide further information to ensure you’re able to make an informed, confident decision.</p>


<p>You may find yourself in circumstances when it would be beneficial for your car finance agreement to be in another name. You may need to apply for another form of credit, such as a mortgage, and wish to improve your affordability, or perhaps you can’t afford the payments and wish to transfer the debt to someone who can. If you’re asking yourself ‘can you transfer car finance to someone else?’, the answer is generally no - a specific car finance cannot be simply transferred to another person. However, there are solutions for different circumstances.</p>

<h2>Avoid fronting and fraud</h2>

<p>If you’re looking &nbsp;to transfer car finance to someone else because you took it out on their behalf as they were financially unable to acquire credit without letting the lender know your intention, you could be accused of ‘fronting’ and fraud. It’s illegal to take out finance for another in this way.</p>

<p>Always be upfront when applying for car finance. There are lenders who specifically arrange credit possibilities for those with limited or poor credit histories. Many will accept parents taking out car finance for their children and will allow them to act as a guarantor. This is possible for those with a history of bad credit applying for credit too. Many lenders will allow them to add someone who will vouch for them financially in order to secure a car finance agreement.</p>

<h2>Guarantors and their role</h2>

<p>A person willing to make your payments, should you find yourself unable to make them during the term of your car finance agreement, is called a guarantor. With a reliable guarantor named on your application, a finance company will feel more secure in offering you finance regardless of your credit history, whether it is poor or just limited.</p>

<p>Always obtain the consent of your guarantor first before making any applications, as it’s their history of credit that will be checked before any car loan will be offered to you.</p>

<h2>Talk to your finance company</h2>

<p>Always communicate with your lender. While the general rule is that car finance agreements can’t be assumed by another person, there may be lenders prepared to help you with your situation. In some cases a lender, subject to a credit check of the person you wish to transfer the car finance to, may be willing to make such a transfer.</p>

<p>It’s important in any legally binding agreement to always be upfront about any changes you’d like to make regarding who is named for the car finance.</p>

<h2>Settling the outstanding debt</h2>

<p>Another option open to car buyers who would like to transfer the agreement to another but cannot do so, is to settle the existing debt and take out a new agreement in the other person’s name.</p>

<p>Again, talk to your finance company. Let them know your intentions and ask for the help in facilitating the process. If they are losing your finance payments per month, they may be happy to make finance possible for the person you wish to transfer yours to.</p>

<p>Discuss the situation with the other person if this is possible. Together you may be able to come to an agreement to pay off the existing debt together and then take out a new car finance deal in their name instead.</p>

<h2>The right answers when you need them</h2>

<p>If you are unsure of what options are open to you when you’re looking to transfer finance of your car over to someone else, you can arrange a call back to discuss your situation. At Car.co.uk, we’re confident we can put your mind at ease with our expert advice.</p>


<p>If you’re currently looking to buy a car, you might see one that suits your needs in a private sale. You’ve heard that finance agreements can be made readily available through dealerships, but you’re asking yourself the question ‘can I get car finance for a private sale?’</p>

<p>The answer is yes, certain lenders will consider offering car finance for a vehicle that is being sold privately, but there are some additional factors involved. Here at Car.co.uk, <a href="https://www.car.co.uk/car-finance">our quote engine</a> with a leading broker is one such service that offers this.</p>

<p>Purchasing an almost new vehicle can be a more cost-efficient choice open to car buyers. While car dealers do sell used cars, those sold privately are often considerably lower in price. With car finance available for purchase in a private sale as well as through a dealership, checking out local listings is worth doing when buying a used car.</p>

<h2>Making a purchase through private sale</h2>

<p>Often, car buyers seeking to purchase a vehicle in a private sale would need to find the funding to acquire their chosen car. Here at Car.co.uk, we can give you access to lenders who specialise in offering car finance agreements in a variety of different circumstances, including private car sales as well as those bought via dealers.</p>

<h2>Secured private sales</h2>

<p>While you can get car finance for a vehicle in a private sale, you may need to give additional information to your lender. This information is usually details only the private seller of the vehicle will be able to supply.</p>

<p>It’s important for the company lending the money to be sure the sale is secure before supplying you with a car finance agreement. This security will include getting the details of the vehicle’s history and knowing that it’s legally available for sale with no outstanding debts attached to it.</p>

<p>Before making your application for a car finance agreement, ensure that the seller is willing to provide all the information you require to complete the process. Legitimate sellers should have no problem assisting you in this request.</p>

<h2>Level of protection</h2>

<p>When buying a car in a private sale always be aware that you’re not provided with the same kind of cover available when you buy your vehicle from businesses such as dealerships. It’s essential that you feel absolutely sure in your decision before committing to your purchase in a private sale. If there’s any aspect of the sale you are uncomfortable with, consult professional advice before buying.</p>

<h2>Check your eligibility</h2>

<p>You can find out if you’re likely to be able to acquire car finance before you even start looking through the listings of private sales by getting in touch with our specialist advisors, or checking your borrowing availability with our online calculators.</p>

<h2>Finance for a private sale</h2>

<p>The finance company you apply to for lending will require a thorough check of the vehicle for which you are looking to borrow funds. This is to make certain the vehicle is being sold lawfully, there are no outstanding agreements for finance or outstanding debts attached to it, and that the stated history of the car checks out completely.</p>

<h2>Getting the best deal with the best advice</h2>

<p>We understand that car buyers are always seeking the best deal possible for their chosen make and model, which is why we offer a full range of services to assist.</p>

<p>If you’re currently considering making a purchase in a private sale and are looking for a finance agreement, don’t hesitate to get in touch with us or arrange a call back. A member of our team will outline the options open to you for securing a finance deal for a private car sale so that you can make an informed decision.&nbsp;</p>


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