FAQ

Applying for any kind of car finance - specialist or not - will require you to provide certain details relating to your personal, work, and financial history - such as proof of income.

Poor credit is the biggest barrier for people applying for race car finance. Vehicles used for motorsport can be more costly and require borrowers to have a good credit history.

As long as you meet the necessary criteria, pass the relevant credit checks, and can make the monthly repayments, you will be eligible to apply for classic car finance.

Applicants with bad credit are unlikely to be approved for classic car finance because the options are limited. The high value of classic models means specialist lenders can and will be choosy about who to release funds.

At Octane Finance we work with specialist lenders who offer all types of race car financing; from touring cars to rally cars and open-wheel race cars too, nothing is beyond our capabilities. Access more information via our race car finance page.

Most standard lenders will only finance cars up to 12 years old, which is why a specialist lender is required when it comes to financing a classic or vintage model.

If you own a supercar and its value has increased since purchase, then you could be eligible for what’s called 'equity release'. This is a way of freeing up cash without the need to sell a treasured vehicle as you are simply borrowing against its value.

Leading car finance companies specialising in classic cars can provide funding for pretty much any model, so the choice is yours. Here at Octane Finance, we broker finance deals for classic car owners, so speak with us about your options.

Financing a supercar means you won't need to pay a large upfront cost and can instead spread the payments over a set period of time. This means your cash is available for other purchases or investments.

The short answer is yes. As long as you meet the requirements needed to apply for supercar finance, it is possible to fund a performance car this way - a solution we provide here at Octane Finance. However, you will likely need an excellent credit score to be approved for high-end funding.

Absolutely! At Octane Finance, we understand that many customers are interested in financing second-hand electric vehicles, and we're here to help. Our market-leading finance solutions are available for both new and used electric cars.

Yes, at Octane Finance, we offer a range of financing options for electric vehicles (EVs), including cars, vans, and motorbikes. Our experienced team works closely with our extensive panel of trusted lenders to provide you with competitive rates and tailored finance solutions for battery-powered vehicles.

Yes, it is possible to pay off the balloon payment early during a Lease Purchase agreement. Early repayment charges may be incurred, so it's best to speak to your lender first before committing to doing so.

Certain criteria must be met in order to be accepted for Lease Purchase vehicle finance. Because LP deals are aimed at those wishing to invest in a premium brand of car, a good credit score of around 700 is desired by lenders. In addition, you will also need to prove your monthly and annual income to confirm you are able to meet the monthly repayments.

Your monthly payments contribute to paying off the total value of the vehicle for the duration of the contract, which is then settled with a final lump sum known as a balloon payment.

Yes, your vehicle is at risk of being repossessed by the finance company if you don't keep up with the agreed monthly repayments. Hire Purchase finance works on a 1 to 3 rule with the lender; if you fail to keep up with payments, the finance company can take the car away at any time - even without a court order - unless you’ve paid for at least one-third of the vehicle already. In this case, a court order will be needed for the lender to take the car away.

While you're paying back the monthly payments during a Lease Purchase agreement, it is the finance company that is the legal owner of the vehicle. Once all payments are made - including the final balloon payment - ownership is then transferred to you as the borrower. To find out more, read the Octane Finance Lease Purchase guide.

No, you cannot sell the car to pay off the remaining HP finance owed. This is because you don't legally own the vehicle, which remains the property of the lender until a final payment is made.

Yes, it is possible to pay off an HP finance deal early on in the contract and return the vehicle - as long as at least half of its cost has been paid, or you pay the remaining balance. Read the Octane Finance Hire Purchase guide to understand more about this form of finance.

Lenders will look to supply customers who have a good credit score with finance. The higher the credit score the better, so depending on the credit score model you're using, you'll want to sit in the 670-739 bracket. Find out more by reading the Octane Finance blog all about what credit score is needed for car finance.

The minimum PCP term is a 24-month period (two years), whereas the maximum PCP term you can sign up for is 48 months (four years).

Yes, any mileage you incur during the term of your PCP contract over and above what's been agreed upon is chargeable to you as the customer. You will be asked to estimate your mileage prior to the finance being agreed, which means excess mileage is calculated on a pence-per-mile basis. Because of this, we recommend that you overestimate your annual mileage.

Ideal for customers with a good credit record, PCP finance can prove to be a more affordable option when it comes to owning a newer vehicle. The main advantage is that the agreement includes a final 'balloon payment' option which means the monthly repayments are generally lower compared to other finance solutions. PCP finance also allows you to buy the vehicle at the end of the term, upgrade the car, or hand it back in order to start a new contract. Read the Octane Finance guide to Personal Cont...

Super-Prime car finance refers to a level of lending within the realms of performance cars at prestige, luxury, and supercar levels. Those within the Super-Prime bracket will have an excellent credit score reflective of their credit history, meaning a more favorable offering from lenders.

Prime car finance is considered good to very good in terms of a borrower's current credit score and supporting credit history. The score varies between credit reference agencies (CRAs) but is usually around the 750 (out of 1000) mark.

There is no specific answer to this one as some lenders will in fact specialise in providing finance to those with a bad credit score. Your credit score will also vary between credit reference agencies (CRAs) and if your circumstances change. A good credit score is considered to be at least 670 on a scale of 0-999. Refer to the Octane Finance credit score scales explainer guide to find out more.

It is still possible to be approved for car finance when on benefits, despite common misconceptions. Ideally, you’ll want to source a specialist lender and fit within their criteria before applying - speak to our Octane Finance experts first.

The lower your credit score, the less likely you are to be approved for car finance, but that doesn't necessarily mean you can't get approved. Working with an experienced broker like ourselves here at Octane Finance will mean we can put you in touch with lenders that specialise in supporting borrowers who have a poor credit history. Get in touch with us to discuss your bad credit finance options.

The most obvious benefit to securing car finance with 0% deposit is that you won’t be required to pay a lump sum upfront, and won’t pay anything until the contract starts.

The likelihood of being accepted for car finance without putting down a deposit is based on your creditworthiness. Borrowers with a good credit history and a high credit score are most likely to be approved. Read our Octane Finance guide on how to improve your credit score to help increase your chances of being approved in the future.

Being refused car finance can leave you feeling frustrated, but the decision by lenders is usually down to poor credit history, a bad credit score, or an incomplete application. Asking why you've been declined for no deposit car finance is your best chance to rectify any problems. Find out what to do if you’re refused car finance by reading our helpful Octane Finance guide on the topic.

If you're looking to finance a new or used vehicle, then paying an upfront deposit is a better way to secure the deal and will increase your chances of being approved by the lender. It is possible to achieve car finance without a deposit, but as a borrower, you'll need a good to excellent credit score first. Speak to our Octane Finance team about your eligibility for zero deposit finance.

Representative APR (the APR bit stands for Annual Percentage Rate) and is a term used by finance companies (lenders) to promote the rate they can offer which is representative of the rate offered to at least 51% of people (borrowers) who apply. But beware - the initially attractive representative APR rate advertised will only benefit just over half of applicants - the rest will have to pay much more. Get to grips with car finance terminology thanks to our jargon-busting guide....

A balloon payment (also called an optional final payment) is a final lump sum made at the end of a PCP finance agreement. If you choose to keep the vehicle, a balloon payment is what’s needed in order for you to fully own the car, van or motorbike. This amount will be much larger than the previous monthly repayments, which is why you'll also have the option to either refinance the outstanding balloon payment or to hand the car back to the finance company. Find out more about balloon payments and...

A finance deal with a Conditional Sale attached means that you have agreed to eventually own the vehicle once all the repayments have been made. This works by splitting the total cost of what the vehicle is worth (minus the deposit amount you make) throughout the duration of your contract. It is similar to Hire Purchase finance but without the ‘Option to Purchase’ fee at the end in order for you to become the legal owner.