FAQs about Car Finance
Who is the legal owner of a car on finance?
Whether you opt for a car lease or a PCP agreement, the finance lender will be the legal owner of any vehicle on finance. You never own the car on a lease but are contracted for a period of time or on PCP until the entire car loan has been repaid. Instead, you are the 'registered keeper' of the car - the person who should be making the monthly payments.
What credit score do you need for a car on finance?
When it comes to car finance, there are no universal requirements for credit scores. Each finance lender has different criteria, although all lenders will review your credit report.
If you're worried about bad credit for car finance, get in touch with our customer service team. They can talk you through all available financial options and find the best terms for you.
What happens if I don't pay my car finance?
If you miss any instalments on your car agreement, the finance lender will get in touch to notify you. Depending on the terms of your contract, interest charges could be added to the loan.
Should missed payments continue on a regular basis, the vehicle will be at risk of repossession.
Can I sell a car on finance?
Even if you have outstanding payments left on your car loan, you can still sell your car to Bristol Street Motors. All you need to do is request a valid settlement letter, which we will settle and deduct from the final sale value. Find out more about selling your car on finance.
How does part exchange work on a finance car?
You can also part exchange your current car with outstanding finance and buy another car at Bristol Street Motors. Instead of receiving a deducted amount of cash, any remaining value on a trade-in car is used to offset the price you pay for a new vehicle.
For more information on how to part exchange a finance car, book an appointment with your local dealership today.
What happens if I damage a car on finance?
If your car on finance sustains damage during your contract, you will need to contact your insurance company to cover the cost of repairs. You will be liable for any excess charges on your insurance policy too.
For car lease agreements, you must ensure that the vehicle is returned in fair condition at the end of your contract. If there is any damage that is deemed to go beyond general wear and tear based on the vehicle's age and mileage, you may need to pay an excess charge.
How do I cancel a car finance contract?
Here at Bristol Street Motors, we understand that financial circumstances can change. That's why we want to make it as simple as possible for you to cancel your car finance. However, there are conditions to be aware of. For example, if you have not paid at least 50% of your car loan at the time of termination, you will also be subject to balloon payments and interest fees.
Read our blog post on cancelling car finance for more information.
Is car finance hard to get?
Applying for car finance is relatively easy, and provided you tick all the boxes it should be easy to obtain. Lenders will complete a number of car finance checks to provide you with an offer suitable for your budget.
This includes checking:
- �Your identity and personal details
- �Your driver�s license
- �Your address and history
- �Your employment and income
- �Your credit score
If you have a good credit score and can provide all the necessary information, there's no reason why you shouldn't be eligible for car finance. You can check your current credit score online for free through banks like NatWest.
Is it cheaper to finance a car or buy it outright?
Many people choose to cover the costs of purchasing a vehicle with finance agreements as they don't have the cash to buy it outright. Finance deals allow customers to enjoy fixed, lower monthly payments making ownership a little cheaper. Note that you will however need to pay interest, as with any type of loan.
There are however some drawbacks, as with some agreements there are often mileage restrictions (for example, PCP). With others, you never actually own the car, such as Personal Contract Hire (PCH).
If you're looking for cheap car finance deals, you are sure to find the right option for you at Bristol Street Motors.
Can you modify a car on finance?
Where a finance agreement doesn't entitle you to legal ownership of the vehicle, you are not permitted to modify it. It's also unadvisable to do so even if you have the option to as this could diminish the car�s value should you wish to return it at the end of the contract. Finance companies expect to receive vehicles that are in good, original condition and are ready to be re-sold.