The advantages of getting car finance

Posted (Updated ) by Gemma Simpson

The advantages of getting car finance

The Advantages of Car Finance

Car finance could make it easier to get a car without paying the full amount upfront. At Go Car Credit, we are a direct lender that offers hire purchase car finance to people with poor credit. We do not offer PCP or leasing — just simple, fixed monthly payments with hire purchase.

This guide explains how hire purchase works and why it may be a good option for people with poor credit. It also looks at how it could help improve your credit over time. You’ll find up-to-date UK car finance statistics and helpful resources. Please note, this is general information, not personal advice.

What Hire Purchase Car Finance Involves

Hire purchase (HP) is a form of car finance where payments are spread over a fixed term. Once the final instalment is made, the vehicle becomes yours. Since Go Car Credit offers HP only, you always know what to expect. This structure means there’s no large payment required upfront, which could be helpful for those applying for car finance for bad credit..

With hire purchase, you own the car at the end of the agreement. This can give peace of mind, especially if you’ve found it hard to get car finance in the past.

How Car Finance Works

  • Application process: You’ll be asked to share details about your income, spending, and any current credit or loan payments.
  • Assessment: Lenders who offer bad credit car finance may look at your full financial situation — not just your credit score.
  • Agreement: If you’re approved, you choose a car that fits your budget and sign a hire purchase agreement with fixed monthly payments.
  • Ownership: Once all payments are made, you become the legal owner of the car.

Advantages of Car Finance (Hire Purchase) with Go Car Credit

1. Spread the Cost – No Large Upfront Payment

Buying a car outright can be difficult, especially if you don’t have savings. Hire purchase lets you spread the cost with monthly payments. This can make it easier to get the car you need. It may also help if you’re looking for no deposit car finance.

2. May Help Improve Your Credit Over Time

Making your payments on time could improve your credit history. A good payment record may help you access more credit in the future. You can check your credit score with Experian, Equifax, or TransUnion.

3. Designed for People with Poor Credit

Many lenders focus only on your credit score. But bad credit lenders may also look at your income and spending. This can help if you are self-employed or receiving benefits. Missed payments or defaults in the past do not always mean you’ll be declined.

Even if you’ve been refused car finance by other lenders, you may still be eligible for a hire purchase agreement.

4. Fixed Monthly Payments

Hire purchase has fixed payments, so you know exactly what you’ll pay each month. This can make it easier to plan your budget. There are no unexpected increases or balloon payments at the end.

5. Get a More Reliable Car

Car finance may let you choose a newer or more reliable car than you could afford with cash alone. A newer car could mean fewer repair bills and better fuel economy.

6. You Own the Car at the End

With hire purchase, the car becomes yours once the final payment is made. There’s no need to hand it back or pay a large final sum. This can offer peace of mind and clear ownership from the start.

7. May Be Available If You Have a CCJ or IVA

If you’ve had a County Court Judgment (CCJ) or an Individual Voluntary Arrangement (IVA), you may still be able to get car finance. Lenders may look at your current income and affordability, not just your credit past.

UK Car Finance Market Statistics

Car finance is a big part of how people in the UK buy vehicles. These recent figures show how large the market is and how important finance can be for those with limited savings or poor credit.

Steps That Could Help Improve Your Credit Score

  • Check your credit report often. If you spot a mistake, ask for it to be corrected.
  • Pay all your bills and loan payments on time every month.
  • Try to keep your credit card balances low compared to your limit.
  • Avoid applying for too much credit in a short space of time.
  • Join the electoral roll to help lenders confirm your name and address.

Following these steps, along with keeping up with car finance payments, could help you build a stronger credit history. This may make it easier to borrow money in the future.

Choosing a Hire Purchase Option That Works for You

Hire purchase is easy to follow. You make fixed monthly payments for a set period, and then the car becomes yours. The terms are clear from the start, which can help with budgeting.

If you’re not sure how much you could afford each month, try using our car finance calculator before you apply. It gives a quick idea of what your payments might look like.

Hire purchase could suit people who want a clear route to ownership. It’s often a good option for those with bad credit, especially if you’re looking for a fair, straightforward agreement.

Conclusion

Hire purchase car finance from Go Car Credit could help you get the car you need — even if you’ve had credit problems in the past. It offers fixed payments, a clear path to ownership, and a chance to rebuild your credit over time.

If you’ve been turned down by other lenders or want a simple, fair option, our hire purchase finance is designed to support people like you. We focus on making the process clear, honest, and manageable.