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Car finance made easy

We make getting car finance simple so you can be on the road in no time with over 17 lenders and 70 products compared.

  • Get a free no-obligation quote - no impact to your credit file
  • Purchase any vehicle from any dealer or privately
  • Don’t pay broker fees - transparent process
  • Found a car? Check the history & value for free
Price calculator

Car finance calculator

I would like to borrow
£1,500
To pay back over
3.5 years

Representative Example: Borrowing £5,500 over 48 months with a representative APR of 19.8%, the amount payable would be £163 a month, with a total cost of credit of £2,283 and a total amount payable of £7,783.

Do car finance companies contact employers?

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.

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.

Credit history checks

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.

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

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. 

Vehicle price

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.

Deposits

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. 

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.

Documentation when applying for car finance

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

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.

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.

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.

Affordability calculators online

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.

Important information close at hand

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.

Other related FAQs

Looking for more related content to this? We’ve picked a selection of related topics that you may find helpful

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.

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.

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.

Car loans can be secured or unsecured, depending on the type of agreement you get.

Car finance is a loan – but it’s one that’s often secured against the vehicle you’ve decided you want. As such, it’s often viewed a little differently to a personal loan – which is not secured against anything.

Lying on a car loan application is a form of fraud and is illegal. If you’re found to have done this, you could face prosecution and you may find it harder to get credit in the future.

In most cases, car finance providers pay for or provide your vehicle after you pay a deposit. Then, over the course of an agreed repayment period, you’ll pay off some or all of the price. The product you choose will decide what happens at the end of the agreement – but common options include taking ownership of the car, handing it back, or upgrading it.

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.

The maximum age of used cars eligible for finance agreements tends to be 10 years, although there are exceptions to this.

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