Finance Application FAQs

Here's some important information about your finance application to look over

What is the role of Auto Trader, the dealership and the finance provider in arranging my finance?

Auto Trader is authorised by the Financial Conduct Authority (FCA) for credit brokerage. So, we provide the platform that allows dealerships to advertise their vehicles and introduce you to their panel of lenders (or finance providers). We are not independent financial advisors and we can't give you financial advise, but we are always here to help where we can.

All of our dealerships are authorised by the FCA for credit brokerage and have a panel of lenders who can potentially offer you finance to purchase their vehicles.

The finance providers, authorised by the FCA fore credit lending, will be the company your finance agreement will be with. It will be the finance provider you pay back over the course of your agreement.

What happens if I have applied for finance with CarMoney?

CarMoney is a credit broker, rather than a direct lender. This means that:

CarMoney does not lend you the money directly. Instead, they will shop around on your behalf to find you the best deal from a variety of different lenders
When you click apply, CarMoney will contact a selection of the most suitable lenders who can offer you a finance deal
This could mean that several hard credit checks may be made against your credit file
Hard credit checks will be visible to other companies in the future and could affect your credit score
However, while not guaranteed, most credit scoring models often recognise these auto loan searches as one single search, rather than lots of separate ones

Is there anything about the finance product I should know?

You will receive a document called a credit agreement, which will include details of your Hire Purchase (HP) or Conditional Sale (CS) agreement. All HP and CS agreements are regulated by the Consumer Credit Act 1974 and your agreement will only apply to the vehicle described within it.

Here are the main important facts to know about your HP/CS agreement:

Your contract length and monthly payments are fixed, so they won't change
It will include interest charges and credit agreement fees your seller will inform you about
You will own the car once the finance agreement has been paid in ful
A Conditional Sale (CS) agreement is the same as Hire Purchase (HP), except that with HP you will need to pay an "option to purchase" fee
You will have the right to settle the contract early, if you wish

Can I afford the repayments?

You should always consider your ability to afford the repayments carefully when thinking about starting any type of finance contract. You should take into account things like:

The length of the contract
Your income
Any other financial commitments you have now or may have in the future
Changes in your personal circumstances that may have a financial impact

The finance should be right for you if you are not able to make your repayments out of your regular income and/or savings (without having to borrow more money or sell assets)

You should inform the seller or finance provider if you become aware of:

A change (or possible change) in your financial circumstances
Any changes to your health or relevant health information that may impact your finances

Will I get the details of the finance in writing?

Yes, when you visit the dealership to sign the contract you will be given the pre-contract Information and a credit agreement document. These documents will outline all important information about the finance contract you have applied for.

This includes:

The terms of your contract: Your contract will last for a fixed period of time. However, you can repay the full credit amount early at any time by giving notice and paying the total amount you owe under the agreement.
You can also repay a chunk of the credit early at any time by giving notice and making the payment amount you agree on. The finance company will then recalculate your future monthly payments.
You also have a right to end the contract early, which may require payments to be made.
Payment information: The documents will show how much you need to pay per month and the total amount to pay in your contract. In a HP contract, the total amount to pay includes the optional final repayment, which you won't need to pay if you decide to return the car at the end of the contract
Fees and charges: The total amount of fees and charges will be shown in your documents. You will have to pay interest and potentially any admin fees from the dealership.
You may also need to pay additional charges, known as default charges, if you break the terms of your contract.

Do I get finance documents to read and sign?

Yes, when you visit the dealership to arrange your finance you will be given your documents to read and sign. These will include the full terms and conditions of your credit agreement and more information about the finance product from the finance provider.

We would suggest you take the time to read and fully understand the information in your agreement before signing your contract. The information Auto Trader provides only includes the key features of your finance agreement, which is not a substitute for reading the full contract conditions.

Your dealership will also give you a document called ‘Pre-contract Credit Information'. This will give you additional information on the specific terms of your proposed contract. This may highlight that the finance is unsuitable for particular types of use, or potential risks it could have for your personal circumstances.

You should carefully consider all the information given to you in your documents and from your dealership. This is important so that you fully understand the key features and risks of the contract before you go ahead.

Some of the information in the ‘Pre-contract Credit Information' document may change. For example, if you decide to pay a larger deposit or choose additional vehicle options. If this happens, the dealership will give you a revised version of the document before you sign your credit agreement. You should read it thoroughly to make sure it reflects what has been agreed before you sign the agreement.

Will I own the car?

The finance company will own the car until the end of your contract. You will only become the owner of the car at the end of the contract if you have paid all the repayments (and the ‘Option to Purchase' fee if you have a HP contract).

You will be the registered keeper of the car and you will be responsible for paying any other charges through using the vehicle (including speeding fines, parking charges etc).

You must take out a comprehensive insurance policy for the car (in your name) for the full length of your contract. This finance contract will not be suitable for you if you are disqualified from driving or unable to get car insurance for any other reason.

Here are some examples of your responsibilities and obligations while the car is in your care:

Keep the car in good condition and have it serviced, maintained and repaired (at your expense) according to the manufacturer's handbook. Keep a full service history.
Keep the car in your possession and control
Not allow the car to be used for hire or motor sports
Not attempt to sell or alter the car

You may also need to get permission from the finance provider to take the vehicle out of the UK, so it's worth checking with your finance provider if you intend to do this.

What happens if I miss any payments?

Missing payments will mean you have broken the terms of your contract, which could result in the finance provider taking legal action against you. This may include repossession of the vehicle.

You may also have to pay additional fees and it could make it more difficult for you to get credit in the future.

If you struggle to make payments, speak to the finance provider or ask for independent debt advice via MoneyHelper.

What if I change my mind about the finance?

You are not bound by the terms of your finance contract until you sign it. This gives you the ideal opportunity to make sure the finance is right before you before you sign the agreement.

Once you have signed it, you have the right to withdraw from the contract within 14 calendar days (starting from the day after you receive a signed copy of the contract). You can do this by speaking to the finance company or sending them a written notice.

What if I've got questions about the finance?

If you have any further questions or concerns about finance, you should speak to the seller directly