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Bad Credit PCP Car Finance

A Personal Contract Purchase (PCP) finance deal is a popular option for customers looking to buy a new vehicle on finance. The main reason that PCP motor finance is so popular is that the monthly payments are somewhat cheaper than with other motor finance agreements.

Rates from 10.9% APR. Representative APR 19.9%

Bad Credit Car Finance

Instant Online Decision

Our online form takes less than 60 seconds to apply & the decision is instant, we will contact you.

£0 Deposit options

If you are approved, we may have £0 Deposit Options available for you, depending on your circumstances.

Free History Checks

We will conduct a Free History & Value Checks on your behalf to ensure the car is fit for purpose.

PCP Car Finance

Bad Credit PCP Car Finance simplified.

When committing to a big purchase like a new vehicle, it’s important to assess all options available in order to go with the right choice. We are here to help you make an informed decision when comparing all the deals in front of you.

Our Lenders

We have great relationships with a wide network of lenders and dealers who specialise in bad credit PCP car finance. We have great relationships with many trusted companies. However, we also want to make it very clear that there is no favouritism between any of our contacts. By comparing these lenders, we can find the best PCP finance deal for you.

Our Promise

We pledge to inform you about Bad Credit PCP Finance Agreements. And we want to assist you with the purchase every step of the way.

We will try our best to get you the greatest rates, even if you have bad credit.


The information on this page should not be treated as a replacement for expert financial advice to do with your personal unique situation. We suggest you use it more as preparation for your Bad Credit PCP Finance application. You can get more information from a Credit Reference Agency if you want to find out more.

Data Protection

We are here to secure the best bad credit PCP car finance deal possible for your unique situation. Everybody is different, and all require a fine tuned service to suit their specific needs within their car finance application.  Especially customers who have a poor credit rating.

Since we are independent brokers, we have access to our wide network of lenders to help you secure the best deals. Just click ‘Quick Apply’ and enter your details into our free calculator. From there, we can compare the best quotes for your circumstances. Your data will of course be completely protected.

Credit Ratings

Customers with a lower credit rating usually pay a higher interest rate. Despite that, it’s not impossible to get a great deal on your new car with regards to your personal circumstances. Make a percentage deposit at the beginning of the contract. The larger the deposit, the less you will pay in your monthly finance rate. There are other types of deals available as well as Bad Credit PCP  Car Finance. It is important that you make sure that you apply for the best finance deal for you.

Hassle Free

Our Bad Credit Finance Calculator

If you require a rough estimate of your entitlement and payments, you may wish to use our Finance Calculator, it is simple to use and takes less than a minute.

Rates from 10.9% APR. Representative APR 19.9% Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 19.9%, the monthly payment would be £182.26, with a total cost of credit of £2,748.61 and a total amount payable of £8,748.61. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply

We are Here To Help!

Frequently Asked Questions

So What Is A PCP Motor Finance Deal?

Like any motor finance deal, a PCP car finance contract allows the buyer to drive away without paying the full asking price straight away. You pay your deposit, agree on your monthly payment rate, and drive away with the car on hire for the duration of the time that you’re paying off the PCP car finance contract. Bear in mind that PCP agreements include the APR, because it takes into account the interest charged on the outstanding balance and any other fees associated with the loan agreement. However, once you reach the end of the monthly payment period, you have three options:

  1. You can pay a remaining lump sum known as a “balloon” payment in order to keep the vehicle and claim ownership of it.
  2. You can choose to return the vehicle once the balloon payment is due.
  3. You can part exchange the vehicle for a new one under a new PCP car finance contract.

The reason that PCP finance monthly rates are cheaper than other finance options is because of the balloon payment containing a significant sum of the agreed price at the end of it. 20% of customers in the UK end up paying the balloon payment at the end of their PCP contract. This is ideal for customers who are OK with renting, however it is important that you are aware of everything that a PCP car finance deal entails. 

There can be other agreements in place with a PCP deal including mileage caps or maintenance requirements. This is because you may not own the vehicle at the end of the deal, meaning that it will be back on the market and so its value needs to be kept as high as possible.  

How Is My PCP Finance Rate Calculated?

When you sign your contract, the difference between the value of the car at that time and the projected value of it at the end of it is worked out. A PCP car finance contract typically lasts between two and four years. So to give an example: if a brand new car is valued at £32,000, and the projected value is £24,000, the difference of £8,000 will be repaid in monthly instalments (plus interest). This amount is known as the Minimum Guaranteed Future Value (MGFV). It’s important to remember that PCP agreements include the APR, because it takes into account the interest charged on the outstanding balance and any other fees associated with the loan agreement.