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By starting an application, a 'soft search' against your credit file will be performed, however, this won't be visible to lenders and won't affect their decision.
By starting an application you agree that NARPOdrive may/will pass your details on to a third party lender or broker, and they may wish to contact you by phone, post, SMS, or other electronic means.
Car Shops Ltd is authorised and regulated by the FCA for consumer credit brokerage and is not the lender. Details of FCA permissions can be checked via the FCA consumer credit register. We can introduce you to a limited number of lenders to assist your purchase, who may pay us for introducing you to them. We are not an independent financial advisor. Finance is subject to credit acceptance to UK residents (excluding the Channel Islands) aged 18 or over. Guarantees and indemnities may be required. Terms and conditions apply. Offer may be varied, withdrawn or extended at any time. *Optional final payment and option to purchase fee not payable if you opt to return the vehicle at the end of the agreement (vehicle condition, excess mileage and other charges may be payable).
Explore our car finance options
With car finance, it's important to find the option that works best for you. Discover more about Hire Purchase and Personal Contract Purchase below.
Car finance FAQs
Getting your car on finance allows you to spread the cost of your car over a minimum term. It can be quite complex, so we've put the most frequently asked questions below.
Should I buy a car on finance?
There are certain benefits to buying a car on finance, but the decision is totally dependent on your finances and your preferences.
When you take out a finance agreement, you are forming what is referred to as a ‘tri-party' agreement, meaning that yourself, the manufacturer and the finance company each has a vested interest in the car until your agreement ends, regardless of how big a deposit you've paid. This can be useful should you encounter any problems, as the finance company are inclined to rectify them.Taking out a finance agreement as opposed to buying a car outright does mean you'll have monthly payments to take into consideration, as opposed to the one initial sum when buying.
What's the difference between PCP, HP and a personal loan?
To demonstrate the differences between the three types of car finance, we've listed each one's unique features below:Unique features of PCP
- You can easily swap to a new car at the end of your PCP agreement
- The monthly payments tend to be lower
- You can encounter additional charges for going over your mileage allowance or damage
- If you want to keep the car at the end of your contract, you'll have to pay what's referred to as a “balloon payment”, or a “minimum guaranteed future value” – this is the remaining sum owed on your agreement
- You don't own the car (unless you choose to buy it at the end of your agreement) - you're technically renting it
- You own the car at the end of the agreement after the final payment
- You have a fixed rate of interest, and fixed payments for the duration of the agreement
- You don't always need a deposit
- Personal loans for cars tend to be less easily available - you'll need a good credit history to obtain one
- You can't terminate the arrangement
- You'll need to visit the bank to arrange the loan
Can you apply for car finance to be in joint names?No. If you're applying for car finance, it must be in your name only.
Can car finance be paid off early?Yes – but you may have to pay a fee for early termination, depending on the lender.
Can car finance be transferred to another car?In some cases, you can refinance and set up a new deal with another car – speak to one of our Business Managers if you'd like to find out more about this.
Will a car finance application have an impact on my credit rating?
Applying for car finance will require what's referred to as a ‘hard search' of your credit report. This is likely to show on your credit score, and if you have several hard searches on your report in quick succession, it can have a negative impact.
At NARPOdrive, our pre-approval process lets you check whether or not you're likely to be eligible for car finance by conducting what's referred to as a 'soft search' of your credit report. This doesn't affect your credit score, as the trace it leaves on your report can't be seen by potential future lenders.
The pre-approval process simply helps you to work out what you're eligible for, without damaging your credit score.Start your free check.
Can I part exchange my current car?Yes. To find out more about part exchanging your car, head to our part exchange page.
Can I get car finance if I have bad credit?It’s not guaranteed; however, we work with a variety of lenders to find the right deals for our customers. We offer options for those who have had credit issues in the past – get in touch with us if you’d like to find out more.
Can you buy used cars on finance?Yes – find out more about the different car finance options above.
Car finance guides
If you have further questions about the various different types of car finance, you’ll find plenty of information in our guides:
Car finance options
The best car finance option for you will vary depending on your circumstances and needs. Read our guide to choosing the right option.Learn more
How does HP work?
If you’re considering a Hire Purchase agreement, read our handy guide and get clued up on