FAQS (Frequently Asked Questions)

No. You are not required to pay any fee whatsoever if you choose to use our services and submit an application. There are no hidden charges that you need to worry about. Finance costs and rates will vary according to the lender and your current credit status.
No. You are not obligated in any way to accept a loan or loans offered by any of our dealers or lenders.
Once you’ve submitted your application, we match you to the auto finance partner within our network that best suits your needs. If they approve you, they will contact you directly and assist you in finalizing your loan.
The interest rate you will pay is dependent on the amount of your loan, the type of car you purchased and your credit score. Once your application is approved, you will be contacted by a credit processor who will give you all the details you need to know about your loan, including the interest rate and how much you are expected to pay monthly.
A down payment is usually required unless you have good credit. The down payment amount will vary depending upon the selling price of the vehicle and your credit score.
If your loan is approved by one of our direct lending partners, you will be able to go to any auto dealer and select any car they have that fits within the maximum loan amount. If your loan is approved by one of our auto dealer partners, you’ll need to purchase a car from them. Keep in mind that even if you are approved by an auto dealer partner, they are always able to search other dealerships to find a car that meets your needs.
Most of the time our lender and auto dealer partners can complete the loan process within 24 hours.
We understand that not everyone will have a perfect credit score. This is why we have a vast network of lender and dealer partners that specialize in providing auto financing for all credit situations.
Applicants with extremely poor credit may be required to have a co-signer.
Your personal and sensitive information is 100% safe here at All Credit Car Loans. All the information we receive from you is encrypted and goes through strict industry standard security protocols.

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Car Finance Explained

If you're in the market for a vehicle and have bad credit, you've probably been asked by a car dealer or two about whether or not you have money to put down. This is common and depending on your credit score, you may or may not have to have a down payment. All car dealers have different requirements for money down and it can depend on a number of factors. Here, we'll take a look at how different types of car dealerships and lenders view down payments, as well as, how they can affect your loan approval.

New Car Dealerships

Most new car dealerships are able to apply rebates and incentives to reduce the need for money down. If you have negative equity in a vehicle that you're trading in, you may have to provide money down to cover the negative equity so that it's not carried over into your new loan. While buying a new car while having bad credit isn't so common, there are many manufacturer's that offer lower priced new cars with attractive financing incentives to make buying easier for people with lower credit scores. Kia and Hyundai are known for their bad credit financing programs and this may be something worth looking into if a new car is what you're interested in. You may wish to call your local dealer to find out about current rebates and incentives that you can use in lieu of a down payment.

Online Loan Matching Services

Services available online in some cases may be able to match you with a lender willing to help you get approved for a car loan with little to no money down. It's a matter of finding the right combination of vehicle and dealer, to work with your individual circumstances.

In Summary

Having bad credit often leads to the need for a down payment when buying a car. New car dealerships may offer incentives or rebates to offset the need and used car dealers may be able to make the numbers work in your favor. Buy here pay here car lots generally always require down payments. Negative equity in the vehicle you're trading can prevent you from being able to buy without any money down.

Good Auto Loans For Bad Credit

Getting an Auto Loan With Bad Credit

Getting An Auto Loan With No Credit History

A personal contract purchase (PCP), often referred to as a personal contract plan, is a form of hire purchase vehicle finance for individual purchasers, which has similarities to both personal contract hire and a traditional hire purchase (buying on instalments).

Unlike a traditional hire purchase, where the customer repays the total debt in equal monthly instalments over the term of the agreement, a PCP is structured so that the customer pays a lower monthly amount over the contract period (usually somewhere between 24 and 48 months), leaving a final balloon payment to be made at the end of the agreement. The total borrowing is the same in both cases, and interest is payable on the entire amount (including the balloon payment on the PCP).

The balloon payment is ideally structured so that it will be less than the value of the vehicle at that point in time, creating equity that may be used as a deposit on another vehicle purchase. The customer is the registered keeper and legal owner of the vehicle, whilst the finance company retains an interest in the vehicle. This interest will be noted in the car’s history whenever anyone checks it, so that the car cannot be sold without clearing the finance first. If the owner defaults on the payments, the finance company may have the legal right to repossess the vehicle. At the end of the agreement, the customer either pays the balloon payment and takes clear title of the vehicle, or the vehicle may be returned to the finance company without any further liability.

A personal contract purchase is therefore a conditional sale agreement, and under UK law the purchaser is protected under the Consumer Credit Act 1974 and the Financial Services Regulations 2004.[1]

A PCP may include the element of maintenance during the duration of the contract though this is in the minority of cases. In the UK, the majority of PCP deals include the payment of the first year's vehicle tax,[2] but subsequent renewals will be at the customer's expense.

The final payment, which initiates the actual transfer of ownership, is calculated by the financing company at the start of the agreement based on its estimates of the future residual value of the vehicle (Guaranteed Minimum Future Value, or GMFV). This final payment is called the balloon payment,[3] and is usually taken as a direct debit unless the customer takes an alternative course of action prior to this time.

It may be agreed instead that the final balloon payment is compulsory within the terms of the contract, but that the owner then retains a right to hand the vehicle back to the financing company at the previously agreed figure (GMFV) in lieu of the balloon payment.[4] It is necessary to fully understand these aspects of a personal contract purchase before signing any deal as a loss may be incurred at this point. This option, but not the obligation, to acquire the car after a period equivalent to a contract hire is therefore packaged as either an option (in law) to purchase the car (a call option) at a 'set' price, or a right to sell the car (a 'put' option) at a set price after ownership is fully achieved from the final ‘balloon’ payment.

The monthly payment amount is determined by the amount of the initial payment (the ‘deposit’), which can be negotiated with the financing company, and the final balloon payment, which is set by the financing company. The financing company is likely to be represented in this discussion by either a car dealer or automotive finance broker.[5]

This form of contract purchase was originally used more by businesses than individuals, but there has been steadily increasing use by consumers in countries such as the UK in recent years. In 2016, 82% of personal new car finance deals in the UK were PCPs.[6]

There is a Finance & Leasing Association Arbitration Scheme in the UK, used if there is a subsequent dispute.[7]

VAT is applicable on the entire vehicle price and is capitalised into the monthly payment when calculating the PCP monthly payment.

Unlike Personal Contract Hire, the leasing company can reclaim the VAT, and this means that the monthly payment would be less because:

In a personal contract hire, the lessee pays VAT on the monthly payment.

PCP car sales have come under heavy scrutiny in Ireland since 2014 as customers felt enough effort was not made to ensure they had full knowledge of all details within the PCP agreement.[8] The Society of the Irish Motor Industry (SIMI) commissioned a report on PCPs, carried out by Grant Thornton, in an attempt to benchmark PCPs. In July 2017, the Competition and Consumer Protection Commission (CCPC) commenced a study into PCP car finance market.[9] This followed a study by Motorcheck which revealed Ireland's new vehicle market was heavily dependent on PCP agreements. The study found 73,979 new vehicles were sold on finance in Ireland in 2016, a 139% increase from 2014.[10]

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