Bad Credit Car Finance

Not everyone is going to qualify for a car loan, be it a personal loan to go buy a car, or some other form of car financing. In many instances, being approved for a car loan can be easier than other loans, as the car can used as collateral for the loan.

If you fail to pay the loan payments, the car can be repossessed.

However, many forms of financing a car require a deposit, good credit, or both.

If you wish to finance a car on PCP/Personal Contract Purchase or HP/Hire Purchase, not only to you need a deposit, but also a reasonable credit score. As credit scores can vary, so can the credit score that is required to qualify for the financing.

There are some things you can do to secure the financing you need to buy a car even if you do have bad credit.

Larger Deposit

Save up a larger deposit for the car you wish to buy.

The larger your deposit is, the more likely a lender is going to approve your loan. The more money a person has invested into a car, the less likely they are to default on the loan.


Making sure you purchase a car that is within your level of affordability, and that the monthly payments are something you can show you can afford will also strengthen being able to be approved for a loan.

Car Finance With a Guarantor

Someone who needs to finance a car and has no credit history, or their past credit history is bad, may want to look into having a guarantor help them in getting their car financing.

There are a few things about getting a loan with a guarantor that are beneficial.

  • Having no credit is not an issue.
  • Poor credit history is not an issue.
  • Once approved for the loan, you can then buy your car like a "cash-buyer". Your financing is already approved and you have your loan, no worrying or wondering if you will be able to buy the car you want or not.

Getting approved for a Buddy Car Loan can be a good move if you have bad credit and are in need of financing a car.

Your loan is based on having a guarantor, not your credit score.

There are low APR guarantor loans that are competitive with other car finance lenders.

Once approved for your loan, you can then shop for cars knowing you have the financing for the car in place.


Buddy Loans is a direct lender rated 5/5 stars by based on 1128 merchant reviews



from 0 to 10

Representative Example


36 months

£158.57 p/m

Total Repayable

Interest Rate
41.16% (fixed)

Representative 49.9% APR.

Terms and Conditions apply. Suitable Guarantor required. All loans are subject to status and affordability checks prior to approval. All applicants must be 18 or over.

Minimum period for repayment: 12 months | Maximum period for repayment: 60 months | Minimum APR 49.8% | Maximum APR 49.9%
Representative example: Amount of credit £3,250 for 36 months. Interest (fixed at 41.16%): £2,464.57. Total amount payable of £5,714.67. Representative 49.9% APR (Variable). 36 repayments of: £158.57.