Frequently Asked Car Finance Questions
Do I need to pay a deposit?
Not always, but deposits are usually very small if one is required for your application, and in most cases £99 is sufficient to reserve a vehicle. Sometimes lenders will require a larger deposit as a condition of the loan but this is on a case by case basis and it is not often required. The most common reason is that there is a better deal available with a deposit and we would always offer you this option if we can get a lower interest rate with a deposit, although there is usually another lender that would assist without the deposit, but it can be a little bit higher interest rate wise. One of the team will always offer you all the available options and you can decide which suits you best.
What documents will I need to finance a car?
Our lenders vary in what they require from you but as a rule of thumb we usually require proof of ID (driving licence, passport etc), proof of income (wage slips or bank statements) and potentially a proof of address (utility bill). We will always make it very clear what we require and confirm this, along with some helpful guidance, in an email.
Do I need to have a Full UK Driving Licence?
The vast majority of our lenders will require you, or a joint applicant on your application, to hold a full UK Driving Licence however we do have lenders that will consider Provisional, EU and International Driving Licences as well on a case-by-case basis.
What length finance terms can you provide?
Each lender has their own terms but in the vast majority of cases, 2 years is the minimum term, and 5 years is the maximum.
Who owns the vehicle on finance?
This depends on the nature of your agreement; for purchase agreements like Hire Purchase (HP) and Personal Contract Purchase (PCP) the lender owns the vehicle until your agreement is settled in full and if applicable, the option to purchase fee, is paid. For Personal Loan agreements the title to the vehicle is always retained by you and you own the vehicle immediately after paying for it.
Can I settle the finance deal early?
Yes, and you are covered by CCD Regulations (Consumer Credit Directive). This means that you will have a reduction in interest as monies paid back early no longer accrue interest so you will save money from the original figures on the document you signed. If you settle the full amount early, the lender will deduct the interest for the remaining term and produce a Settlement Figure. This is what you will need to pay to settle the agreement fully and is accurate usually until your next payment date, and this figure will be considerably less than the total of the payments you still owe. The lender can charge up to one months interest as an early settlement fee, but this is usually much less than the discount you get for settling early, so well worth your while doing. If you pay a part, or full payment in excess of £8,000 in any calendar year, the lender has the right to charge an additional 1% fee, or 0.5% fee if you are in the last 12 months of the agreement. All of the above mentioned fees are very small in comparison to the savings you make settling early, so if you are able to, you should take advantage of the option to do so.
How long will the application process take start to finish?
Some customers apply in the morning, and collect their car the same day. Usually people will collect within a day or two of the initial application, equally some customers are not able to collect for a period of time. It is tailored to your circumstances and we will always provide adequate explanation if there is a delay our side.
I have seen a car at a specific dealer, can I still get finance through you?
In most cases yes. The dealer needs to have the correct licence to process finance sales, most dealers do have this, and they will need to be happy to receive funds from us, again, most dealers are more than happy to do this. We cannot fund private sales, or from dealers who are not licenced properly unless you qualify for a personal loan with us.
What range of interest rates do you offer?
We are a broker, so it is the lender we place your application with that sets the rate, not us. You pay less if your credit history is good, and more if your credit history is not so good. We will always offer you the lowest rate available to you, this is a legal requirement. You can get a gauge of what to expect by searching any car, and then scrolling to the bottom of the page where there is a calculator and descriptions of circumstances that are likely to match the rate you pay. If you read the description and select the one that sound most similar to your own circumstances, this will give you a rough guide of what to expect as a monthly payment based on your credit history and the amount you want to borrow.
Will you take my current car in part exchange?
Yes, we can talk to you about this in more detail when you apply, but many people do part exchange as part, or full deposit.
19.9% APR Representative
The representative APR means 51% or more of our customers who apply through the website and take up an offer of finance pay a rate of 19.9% APR or less.
If you are accepted and your credit history is good you could potentially be offered an APR lower than this rate, if your credit history is poor you could potentially be offered an APR higher than this rate. Finance applications are always subject to status and affordability checks, written quotations are available upon request.
In 2023…
MK Finance Group paid out 906 loans, for a total funded balance of £9,871,287 and 98 pence!
Specialist Broker
MK Car Finance is a specialist broker and we work with a number of carefully selected finance providers. We will only administer finance arrangements on behalf of these providers and we may receive a commission for this. We do not charge customers for our services.