How to apply for car finance
Applying for car finance online takes a few minutes and you can get a decision quickly without it affecting your credit score. This guide covers the full process from start to finish: what information you need to have ready, who can apply, how the credit check works, and what happens once you are approved.
Before you start an application, it helps to have the following to hand:
You do not need to have a specific car in mind to start an application with AutoMoney Trust. You can check your eligibility and get an approval in principle first, then find the car. Alternatively, if you already have a vehicle identified, you can include those details in your application.
To apply for car finance with AutoMoney Trust you need to be:
Beyond those basics, we consider a wide range of applicants including:
If you have been turned down by other lenders, that does not automatically mean you will be declined here. For more on how we assess poor credit applications, see our guide on car finance with a CCJ.
Use our car finance calculator to see what monthly payments look like at different loan amounts and terms before you start your application.
AutoMoney Trust uses a two-stage approach. The initial eligibility check is a soft search, which does not appear on your credit file as an inquiry visible to other lenders and has no effect on your credit score. This lets you find out whether you are likely to be approved without any risk to your file.
If you proceed to a full application, a hard search is run at that point. This is visible to other lenders for 12 months. A single hard search has a small and temporary effect on your score. The concern is running multiple hard searches across different lenders in quick succession, which is why using soft search tools first makes sense.
For a full explanation of how soft and hard searches work and what lenders look at, see our guide on credit checks for car finance.
First-time applicants face a common challenge: lenders want to see a track record of managing credit, but you have not had the chance to build one yet. A thin or empty credit file does not mean an automatic decline with every lender, but it does narrow your options.
Specialist lenders who offer hire purchase to applicants with no credit history are your best route. Because the loan is secured against the vehicle, they can take on more risk than an unsecured lender. The interest rate offered will reflect the limited credit history, but a well-managed HP agreement is itself one of the most effective ways to start building a credit profile.
A few things that can help a first-time application:
With AutoMoney Trust, decisions are given in minutes. The initial soft search and eligibility assessment is automated, so you do not wait days to find out whether you are likely to be approved. Once you proceed to a full application with a specific vehicle, the formal decision follows quickly.
The time between application and driving away depends largely on how quickly the supporting steps are completed: finding the vehicle, signing the agreement, and the dealer completing their side of the process. In straightforward cases this can all happen within a few days.
Yes, the entire AutoMoney Trust application process takes place online. There are no branch visits and no need to apply in person. You can start, complete, and sign your agreement from wherever you are.
The online process is the same regardless of your credit history; poor credit applicants, first-time applicants all apply through the same straightforward online form.
Start your application on our apply for car finance page. The initial check will not affect your credit score.
Once your application is approved and you have signed the finance agreement, the process moves quickly. AutoMoney Trust releases the funds directly to the FCA-authorised dealer selling the vehicle. You then collect the car from the dealer.
Your first monthly payment is taken by direct debit on the agreed date, with subsequent payments on the same date each month throughout the term. The interest rate is fixed, so the payment amount stays the same from the first month to the last.
For more on how the loan term affects your monthly payment, see: How does the loan term affect my payments?.
If your application is not approved, you will be told and you will not be charged anything. A decline does not prevent you from applying elsewhere, though it is worth understanding why before doing so. Applying to multiple lenders in quick succession creates multiple hard searches, which can make subsequent approvals harder.
For guidance on next steps after a decline, see our guide on what to do if you have been refused car finance, which covers the most common reasons for refusal and what to do about each one.
Your loan term directly affects both your monthly payments and the total cost of borrowing. A longer term, such as 60 or 84 months, spreads the cost over more payments, lowering the monthly amount but increasing the total interest you pay across the agreement. A shorter term, such as 24 or 36 months, means higher monthly payments but a lower overall cost. AutoMoney Trust offers terms from 24 to 84 months, so you can balance monthly affordability against total cost. Use our finance calculator to compare different term lengths before applying.
Car finance can affect your credit score in both directions. Consistent, on-time payments build a positive credit history and may improve your score over the life of the agreement, demonstrating to future lenders that you can manage credit responsibly. Missed or late payments have the opposite effect, they are reported to credit reference agencies and can lower your score, making future borrowing harder or more expensive. Applying for finance also creates a hard credit search, which may cause a small short-term dip. Settling your agreement in full further strengthens your credit profile. For more detail, read our guide on Credit Checks for Car Finance.
On a Hire Purchase agreement with AutoMoney Trust, legal ownership of the car does not transfer until you have made all monthly payments and paid the £199 Option to Purchase Fee at the end of the term. Until that point, the vehicle remains the property of AutoMoney Trust, which means you cannot legally sell or modify the car without our agreement, and the car may be at risk if payments are missed. You are still responsible for tax, insurance, MOT, and maintenance throughout the agreement. Once the final fee is paid, ownership transfers and the car is fully yours.
A fixed rate keeps your interest rate and monthly payments the same throughout your agreement, giving you predictable costs from start to finish. A variable rate can rise or fall during the term, usually tracking the Bank of England base rate or the lender's standard variable rate, which means your payments can go up or down. AutoMoney Trust offers fixed interest rates only, so you know exactly what you will pay each month. Fixed rates provide certainty but may start slightly higher than introductory variable rates; the trade-off is protection from future rate rises. For more detail, read our guide on What Is Car Finance APR?.
