Bad Credit Car Finance

Bad Credit Car Finance vs. Car Leasing: A Comprehensive Guide

Accessing finance to purchase a vehicle can be challenging for individuals with a bad credit history.

Lenders often view them as higher risk, affecting their borrowing options.

In this guide, we’ll explore whether obtaining car finance with bad credit is possible (spoiler alert: it is), discuss the pros and cons, and outline various options available to those seeking a car with bad credit.

Can I Get Car Finance with Bad Credit?

Yes, it is possible to secure car finance with bad credit. While there is no minimum credit score requirement, having a lower score can result in higher interest rates and additional costs. Poor credit scores often come with higher charges, meaning you’ll pay more over the full term of your loan.

How Can I Improve My Chances of Getting Car Finance with Bad Credit?


  • Opt for a More Affordable Car: Consider choosing a budget-friendly vehicle. Borrowing a smaller amount can increase your chances of loan approval and reduce interest costs.
  • Increase Your Upfront Payment: Paying a larger deposit upfront or making an annual payment instead of smaller monthly instalments can help lower your interest rate.
  • Find a Guarantor: If you’re struggling to secure car finance, ask someone to be your guarantor. A guarantor agrees to make payments if you’re unable to do so, which lenders view as reduced risk.

How Bad Credit Affects Getting a Car on Finance

Bad credit can impact your ability to buy a car on finance. Lenders use your credit score to assess the risk of non-payment. If you have bad credit, they might decline your application or charge you a higher interest rate to mitigate the risk.

Types of Car Finance Available for Bad Credit

Individuals with bad credit have access to the same car finance options as anyone else, though approval may be more challenging. Here are the main options:

  • 0% Credit Card: Allows interest-free purchases for a specific period, after which interest applies.
  • Personal Loan: Borrow a fixed amount at a fixed interest rate, repaid in monthly instalments.
  • Hire Purchase (HP): Hire a car and purchase it once the loan is paid off. Available to individuals with all credit backgrounds.
  • Personal Contract Purchase (PCP): Similar to HP, but with an option to buy the car at the end of the contract.

We Accept




And All Bad Credit

Consider Car Leasing as an Alternative

For individuals with bad credit, car leasing can be an attractive alternative to traditional car finance. Leasing offers several benefits that may better suit your financial situation and lifestyle needs. Let’s explore how car leasing works compares to car finance and why it might be the right choice for you.

Leasing a Car vs. Buying a Car

Leasing a Car:


Buying a Car:



Why Choose CVS for Your Bad Credit Car Leasing?

  1. Specialists in Bad Credit Car Finance: Since 1999, we’ve specialised in bad credit car leasing, helping customers with less-than-perfect credit scores secure the car they desire. As a specialist lender we understand your situation.
  2. Personalised Approach: We listen to your needs, understand your car preferences and budget, and create a tailored and flexible finance agreement.
  3. Accommodate Bad Credit: Your credit history doesn’t define your future with us. We work hard to provide you with the car you want, regardless of your credit situation.
  4. Exceed Expectations: From delivering loan cars to ensuring a stress-free experience, we consistently go above and beyond to meet customer needs.
  5. Exceptional Customer Service: Our reviews highlight our outstanding service, friendly approach, and commitment to making your car leasing journey smooth and enjoyable.
  6. Efficient and Prompt: Our efficient processes ensure timely delivery, even on weekends! Our straightforward application process and swift decisions mean you can get on the road sooner.

Additional Considerations:

  • Soft Credit Checks: At CVS, we perform a soft credit check only after you have been pre-approved. We never conduct a hard credit check, ensuring we assess your eligibility without impacting your credit score.
  • Credit Report: Reviewing your credit report can help you understand your financial situation better and identify any errors that could affect your application.
  • Car Loans: Traditional car loans are an option, but leasing might be more suitable if you’re looking to avoid a large initial outlay.
  • Applying for Car Finance: When applying for car finance, ensure you have all necessary documents, such as your driving licence and proof of income.
  • Improve Your Credit Score: Making timely payments on your lease can help improve your credit score over time.
  • Accepted for Car Finance: Even with a bad credit score, you can still be accepted for car finance through specialised lenders.
  • Finance with No Credit: If you have no credit history, leasing can be an easier entry point compared to traditional car loans.

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