Car Finance 247 Loan Review Get Up to £7,500 (2020)
Last updated: 18th Jan 2020

CarFinance 247 Review


CarFinance 247 was founded by the Rix Brothers in 2006 as an easier car financing broker in the UK. Within ten years, the company expanded to over 200 employees, and is based in Manchester. The company claims to be the number 1 broker for car finance in the country. As it’s a broker, the loans are not provided by CarFinance 247 itself. Rather, the broker processes the loan application and applies to lenders on the borrowers behalf to secure the loan. CarFinance 247 also helps its customers find an affordable car from reputed dealerships. The company also helps secure loans for other types of vehicles as well, such as motorbikes, motorhomes, caravans, and vans.

Also Check: Get Me Car Finance Loans Review

Types of loans

Since CarFinance 247 is a credit broker, it is able to provide a variety of UK loan options to its customers from an extensive panel of lenders in the UK. The four types of loans, as mentioned on the broker’s website, are as follows:

1) Hire Purchase (HP)

The Hire Purchase car finance option allows the borrower to hire a car from a lender in exchange for a series of monthly payments. The ownership of the car is ultimately transferred to the borrower when the entire loan amount is fully repaid. Most customers prefer the Hire Purchase option when financing a car.

  • With Hire Purchase, the borrower is expected to make an initial deposit followed by a series of monthly repayments.
  • The loan term and monthly repayment amount are set based upon the size of the initial deposit made by the borrower.
  • Hire Purchase loan agreements can be fully settled at any time before the loan term ends.
  • If the borrower wishes to exercise this option, a settlement figure needs to be requested from the lender.
  • Upon payment of the stated settlement amount, the car comes under the ownership of the borrower.

There are many reasons why Hire Purchase is the preferred car financing option by many borrowers.

  • The lender does not impose any restrictions on the mileage of the car
  • The loan does not charge a lump sum at the end to gain ownership of the car
  • The loan has a fixed payment plan
  • Borrowers have the option to terminate the loan agreement through the Voluntary Termination (VT) clause after half of the total loan amount has been repaid. The car needs to be given back in this case.

However, there are some cons associated with Hire Purchase agreements, such as:

  • A higher monthly payment compared to alternative loan options
  • It is a secured loan with the car as collateral. This means the car will be repossessed by the lender in case the borrower fails to make timely repayments.
  • If the borrower does not make timely repayments, the credit score is adversely impacted.

Another related concept is that of a conditional sale agreement. This includes all of the features of a Hire Purchase agreement, but has the added advantage of automatically transferring ownership of the car to the borrower at the culmination of the loan agreement.

2) Personal Contract Purchase (PCP)

The Personal Contract Purchase, or PCP, has all the qualities of a Hire Purchase loan. However, a major distinction exists in the manner these two types of loan agreements end. When the loan is fully repaid, under the PCP borrowers are presented with two options:

  • To return the car and get equity, and use it to make the deposit on another vehicle. Or,
  • To pay the Guaranteed Minimum Future Value (GMFV) of the car and acquire its ownership.

With PCPs, the maximum mileage allowed per year is also predefined, and exceeding this limit, or damaging the vehicle beyond reasonable wear and tear, can result in additional costs being charged by the lender.

Borrowers may prefer PCP loans because they:

  • Have a lower monthly payment due to a balloon payment at the end
  • The cost of the loan is fixed, allowing for easier budgeting.
  • At the end of the loan, the borrower has the option to either buy ownership of the car, to give it back in exchange for equity which can be used to make a deposit on another car, or to simply give back the car.

However, there are some negatives associated with PCP loans as well:

  • When the loan agreement ends, the car may not be in a fit enough condition to be returned, unless the borrower is willing to pay extra charges for exceeding mileage limits or excessive damage to the car.
  • The balloon payment required at the end, equivalent to market value of the car at that point estimated at the beginning of the loan agreement, may be unaffordable by some borrowers.
  • The interest to be charged on the final balloon payment is already included in the monthly payments.

An important point to note with PCP agreements in that, although these too contain the Voluntary Termination (VT) clause like Hire Purchase loan agreements, borrowers may find it more difficult to exercise this option until they are far along in the loan term, as it would take longer to pay off half of the loan amount due to smaller monthly payments.

3) Personal Loan

A personal loan is a loan against the borrower’s own name. These are unsecured and do not consider the car as collateral.

  • Personal loans allow borrowers to buy and sell a car as they deem fit, as the car is under their ownership, without acquiring any approvals from the lender.
  • It is difficult to acquire a personal loan if the borrower has a bad credit record.
  • Also, securing a loan amount greater than £25,000 may not be possible.

CarFinance 247 also does not conduct any checks on the repute of dealerships, as it does with HP and PCP loan agreements.

4) Guarantor Loan

Borrowers with a poor credit record are usually unable to take out personal loans. For such borrowers, guarantor loans are a good option.

  • A guarantor loan requires a third party, usually someone in close relation to the borrower (family member or friend), to co-sign the loan agreement with the borrower.
  • In a guarantor loan, the guarantor promises the lender to make repayments on a loan in case the borrower fails to do it.
  • Guarantor loans can help borrowers improve their credit score.
  • Also, guarantor loans offer a cheaper interest charge compared to payday loans, which is another option usually availed by borrowers with a poor credit history.

Also Read: Simple Fast Loans Review

Eligibility Criteria

Since CarFinance 247 is a loan broker, its eligibility criteria stems from the criteria as set by the lenders on its panel. However, CarFinance 247 still recommends that the borrower should:

1) Be over the age of 18

For many car finance lenders, being 18 and above is a requirement. However, CarFinance 247 does consider applications from younger borrowers, and can help them secure car financing, provided they have a co-hirer, such as a parent, with a good credit history.

2) Have a deposit

Although it’s not mandatory, an initial deposit can certainly improve chances that a loan application is approved. Also, depending upon the deposit size, subsequent monthly repayments can also be reduced. However, in most cases, CarFinance 247 does not require borrowers to pay an initial deposit.

3) Be employed and/or have an adequate monthly income

CarFinance 247 considers the following professions as employment: agency worker, student, housewife, taxi driver, disabled, self-employed, part-time worker, carer, member of British Military, or those with a contract of employment (beginning work soon).

From a lender’s perspective, only borrowers with a regular income stream are able to make loan repayments. Although no minimum income is specified by CarFinance 247, borrowers should make a self-assessment of their ability to make monthly repayments from their regular income.

Pros & Cons

By opting for a car finance loan through CarFinance 247, borrowers can benefit from the following pros & cons:

    • Pre-checked supplier dealerships

Borrowers don’t have to worry about the authenticity and quality of supplying dealerships as CarFinance 247 conducts extensive checks to protect the borrowers.

    • Works with a long list of lenders

This means CarFinance 247 has the ability to get the borrower a suitable car financing option.

  • Also provides facilitation in acquiring personal or guarantor loans
  • Finds a suitable car finance option as per the borrower’s unique financial situation
  • This is not a direct lender, so it may take some time for a borrower’s loan application to get processed.

How much will it cost to finance a vehicle through CarFinance 247?

The representative APR as quoted by CarFinance 247 is 25.4%. The broker states APR based on the credit rating of the borrower. For example, borrowers with an excellent credit rating get an APR of 6.9%, with a good rating get 9.2%, a fair rating get 13.2%, and bad rating get 19.1%.

The following examples illustrate the estimated loan amounts that CarFinance 247 is able to provide. According to the CarFinance 247 website, these are only estimates of the expected loan amounts, and the actual loan agreement may be very different. As shown, the charge of credit depends entirely on the borrower’s credit history.

Loan Type Loan Amount Loan Term Total Repayable Charge of Credit
Best Available Option (borrower with Excellent credit rating) £7,500 4 years £8,569.12 £1,069.12
Best Available Option (borrower with Good credit rating) £7,500 4 years £8,930.17 £1,430.17
Best Available Option (borrower with Fair credit rating) £7,500 4 years £9,562.20 £2,062.20
Best Available Option (borrower with Bad credit rating) £7,500 4 years £10,501.26 £3,001.26

Information Required To Apply

CarFinance 247 will require the following information and documents during the loan application process:

1) Evidence of a valid driving license

2) Evidence of income

This can be fulfilled with either payslips or a bank statement.

3) Evidence of address

Usually a utility bill is enough to confirm the borrower’s address.

Additional information and documentation, depending upon the lender, may be sought from the borrower. These requirements remain the same in all parts of the UK, but lenders belonging to certain regions may have additional documentary requirements.

Also Read: Compare Car Finance Online

How To Apply With Car Finance 247?

CarFinance 247 has a 4-step process which every borrower must go through to secure financing for a car.

Step 1

The first step is to acquire a quotation by filling out an online application form available on the CarFinance 247 website. To access the application form, simply click on the Get A Quote button as displayed in the image below.

Step 1

After clicking this button, the application form is displayed (shown below). Borrowers are expected to fill out all the details as stipulated in this application form to get a quote.

CarFinance 247 will use the information provided by the borrower in the first step to approach lenders and get an initial quotation. An account manager is also appointed to each borrower to assist during the application process. The initial quote tells the borrower how much can be borrowed, the loan term, and interest charges. Borrowers may also be requested to submit additional documentation at this step, as per lender requirements.

CarFinance 247 has a list of dealers that are trusted by it, cumulatively selling more than 140,000 cars. However, borrowers are not limited to buying a car from these dealers and can secure a car from anywhere. Once the car is chosen, CarFinance 247 conducts checks to make sure the dealer can be trusted.

Once the car is selected, a final car finance agreement is drafted which the borrower (and, in some cases, a co-signer) needs to sign in order to finalize the loan.


CarFinance 247 is a broker, which means it would approach lenders on the borrower’s behalf to secure a loan. While it may be able to secure a financing option for a borrower with bad credit rating, the deposit requirements may be high and approved loan amount may be low.

No, getting approved in principle means a lender is willing to provide a loan to the borrower. However, this approval is subject to conditions, which may include review of additional documentation as required by the lender.

It depends. While a single request for loan pre-approval does not have an impact on the credit rating, multiple requests made within a short span of time can definitely reduce an individual’s credit rating.

Initial deposits vary by lender, but usually are around 10% of the total loan amount. However, borrowers may deposit a larger amount to reduce monthly repayments. Some lenders may not require any initial deposit, but this may result in higher monthly repayments.

With HP and PCP loans, the borrower cannot sell the car before the loan term is completed as the lender retains ownership of the car till that time. In the case of PCP loans, ownership is transferred to the borrower after payment of Guaranteed Minimum Future Value (GMFV) of the car at the end of the loan term. However, if a car has been acquired through a personal or guarantor loan, then the car can be sold during the loan term, provided the borrower’s ability to make monthly repayments on the outstanding loan balance is not negatively impacted.

Loan Brokers/Lenders Like CarFinance 247

Would you like to see some alternative options to CarFinance 247? In that case, here is a list of alternative brokers and lenders in the UK offering car financing facilitation, all of whom have been reviewed and rated by Credit Raters.

Broker/Lender Description
Get Me Car Finance (Lender) Get Me Car Finance is a lender is the UK offering car loans with a representative APR of 6.9%.
What Credit (Broker) What Credit is a car financing broker offering services similar to those being offered by CarFinance 247. The lowest APR quoted by What Credit is 4.9%.

Car Finance 247 Promo Codes

No promotional codes are available for CarFinance 247 at this time.