CarMoney

CarMoney: car finance broker in the UK

CarMoney Limited operates as a car finance broker in the UK, not as a direct lender. Its activity focuses on intermediation between customers and a panel of finance providers for the purchase of vehicles, including cars, motorcycles, motorhomes and commercial vehicles. The company states that in the last twelve months it has approved loans worth more than £1.34 billion and has served more than 100,000 customers.

The application process is completed online and, according to the company, takes about two minutes to provide the necessary information and obtain a finance decision. CarMoney states that the application does not affect the applicant's credit score. The firm presents itself as a comprehensive service that helps the customer find the right vehicle, tailors a personalised finance solution and offers the possibility of delivering the car to the customer's home.

Products and types of finance

The company offers finance for different categories of vehicles:

• Cars: finding finance options tailored to the customer's situation.
• Motorcycles: finance alternatives for motorbikes.
• Motorhomes: credit options for this type of vehicle.
• Commercial vehicles: finance for businesses and professionals.

In addition, CarMoney has a specific service for business and commercial vehicle finance, presented through its character Nikki the Ninja. The company has also recently launched VanMoney, a line dedicated to van finance.

Terms and rates

Finance is offered from an annual percentage rate (APR) of 8.9%, with a representative APR of 17.4%. CarMoney provides a representative example: a loan of £6,000 with a £1,000 deposit over 48 months, with a representative APR of 17.4%, would result in a monthly payment of £170.50, a total cost of credit of £2,184 and a total amount payable of £9,184. The company acts as an intermediary and may introduce the customer to a limited number of finance providers based on their credit history, receiving a commission for such introductions, either a percentage of the amount borrowed or a flat fee. According to the company, this commission does not influence the interest rate offered.

Requirements and documentation

To complete an application, CarMoney states that the applicant must have:

• A provisional or full UK driving licence.
• Proof of employment: the last three payslips (sometimes more, depending on the provider).
• Proof of residence: a utility bill or official document with full name and address.
• A photo ID other than the driving licence, usually a passport.

Additional services and purchase process

CarMoney offers the possibility of financing a vehicle even if the customer has not yet found the car, thanks to its network of dealerships across the country. The company also handles the valuation and part-exchange of the current vehicle, even if it is subject to a finance agreement (HP or PCP). In these cases, the customer must obtain a settlement figure from their current lender and the valuation of their car; the difference determines the capital available for the transaction. If the result is negative, the amount is added to the price of the new vehicle.

The process includes an HPI check of the vehicle purchased through a trusted dealership. Once the finance is approved, the customer can choose to collect the car or request home delivery.

Customer profile and credit

The company serves customers with different credit profiles, including those with a negative history or low score. CarMoney explains that factors such as payment history, level of indebtedness, length of credit history, types of credit and new applications influence the score. To improve the chances of approval, the firm recommends obtaining a credit report, registering on the electoral roll, keeping up with payments and limiting formal applications, using eligibility checks (soft search) instead of applications that generate hard searches.

Information resources

CarMoney maintains a blog with guides and articles on car finance. Topics published include bad credit finance, negative equity, taxi finance, electric cars and refinancing PCP balloon payments. The company also offers answers to frequently asked questions on these matters.