The Driver's Seat - Zoomo Blog

Car finance in Scotland: options if you're not near a dealership

Fri, 18 Sep 2026 11:09:59 GMT

Looking for car finance in Scotland but you're nowhere near a dealership? Find out how we can help.

Scotland is a country with a list of good points longer than the River Tay. But in some cases, one benefit becomes a drawback: it's sparsely populated.

Yes, a sparse population can mean idyllic, peaceful scenery. But if you're looking for car finance, it's something of a spanner in the works.

Scotland has plenty of car dealerships, of course. They're just not necessarily close to you. Getting car finance on the forecourt can be like finding a needle in a haystack.

If this is a problem you're facing, you're in luck. You've got options – and neither of them involve stepping foot out of the front door.

How to get car finance if you're not near a dealership

Option one: get a personal loan

Your first option is to get a personal loan online. You can get these from high street banks, supermarkets and comparison sites.

Now, technically speaking, a personal loan isn't car finance. Unlike with a finance agreement, the loan isn't tied to the car. You can use it for just about any purpose.

However, like car finance, it's money you must repay in fixed instalments.

Personal loans have their advantages. Perhaps best of all, you own the car from day one.

This is different from hire purchase (HP) and personal contract purchase (PCP) car finance agreements. With these agreements, the lender owns the car until the final payment has been made.

There are other reasons you might choose a personal loan:

You don't face any mileage restrictions
You're allowed to modify the car
You can buy from a private seller or auction, as well as dealerships

Once your personal loan is in the bank, you can buy a car from a local private seller or a nearby-ish dealership that offers delivery.

Downsides of a personal loan: more freedom, potentially more hassle

A personal loan can be a good option if you already know which car you want and are happy to arrange everything yourself. But it does mean taking care of the finance separately from the purchase.

You'll need to find a suitable car, make sure you're happy with its condition and price and then arrange collection or delivery to Scotland.

If you'd rather have the car and finance arranged together, that's where a car finance broker can make things simpler. With Zoomo, you can browse our available cars , apply for finance and have your chosen vehicle delivered to your door. That's true even if you're hundreds of miles from our Newcastle dealership.

Option two: use Zoomo's delivery service

Here at Zoomo, we deliver vehicles directly from our showroom in Newcastle to your home in Scotland. This means you don't need either to visit us here or arrange transportation – a time-consuming task that's not always possible. Take out an agreement with us and delivery is covered.

Plus, you might also have a better chance of securing finance with us than getting a loan from a high-street bank. That's because we often work with drivers who have poor credit scores, connecting them with a wide panel of specialist dealers. We firmly believe that your financial history shouldn't determine whether you can get the car you need.

We deliver to Glasgow, Edinburgh and across Scotland. Simply check your eligibility on our website , secure your vehicle finance and select a used car from our online stock .

Crucially, this eligibility check is a soft search. That means it won't affect your credit score at this stage. A hard search is only performed when you've weighed your options and made a formal application.

That's one of the key advantages of working with a car finance broker like us. We put you in touch with lenders so you don't have to make direct applications and hard searches.

Once that's done, we do the rest. Our friendly and knowledgeable team take care of shipping, routing and paperwork while you get on with your life north of the border.

Why work with us?

We're a specialist finance dealer, meaning we regularly work with drivers who have poor credit histories.

We do this by connecting them with a wide panel of specialist lenders – lenders who will consider your current affordability alongside your credit score.

We have a 96% acceptance rate, saving you time and avoidable rejections by putting you in touch only with lenders who will look favourably on your application.

And just to put your mind at rest, " bad-credit car finance " doesn't mean "bad-quality cars". Quite the contrary – our cars are RAC Approved and prepared to AA Cars standards before they show up on our forecourt or online.

These accreditations matter whoever and wherever you are, of course. But if you're buying remotely, they add an extra layer of reassurance to your purchase.

Our application is super quick and super easy. The online application process takes a matter of minutes, and many customers find out whether they're eligible within the hour. However, this may take longer if there's any missing or unclear information.

And because we're a small, close-knit team – not a faceless corporation – you can always speak to someone on the phone. We never hit you with sales patter, and we always answer questions directly and honestly.

What kinds of car finance do you provide?

We give you the option of hire purchase (HP) or personal contract purchase (PCP) car finance agreements. Learn more about how car finance works and the different types available.

What kinds of cars are best for driving in Scotland?

Scotland's terrain is vast and varied. But outside the major cities, you're often faced with single-track roads. These can be a challenge to navigate in some vehicles.

That's why we would recommend a compact hatchback or small estate car for driving in Scotland. These cars are small enough for paper-thin single-track roads while still providing ample boot space.

Great cars of this kind include:

Toyota Yaris
Dacia Sandero
Ford Focus Estate
Skoda Octavia Estate
Renault Clio

Are you looking for car finance in Scotland ? Use our soft-search eligibility checker to apply for finance online today . It only takes a few minutes.

What is an RAC Approved Dealer (and why should you care)?

Mon, 14 Sep 2026 06:19:44 GMT

RAC Approved Dealer status is non-negotiable when buying a car on finance. Find out why in our guide.

Can you trust car dealers? An RAC survey from 2015 reported that 39% of used car buyers had had a bad experience. Moreover, 29% of dealers dealt badly with issues following a sale.

If you're looking to buy a used car, whether upfront or on finance, you need to be sure that your dealer is reputable. That's where the RAC Approved Dealer scheme comes in.

It's an independent assessment of car dealerships carried out by the RAC – the British motoring association that provides roadside assistance, insurance and other services.

But what does this mean in practice – and why should you care? In this guide, we make the case for RAC Approved Dealer status as non-negotiable when buying a used car on finance.

What is an RAC Approved Dealer?

An RAC Approved Dealer is a car dealership that's assessed and approved by the RAC.

Dealerships are approved if they meet RAC standards. These ensure the car is inspected and prepared before sale and that it meets safety standards. Approval also rests on how the dealership operates and deals with customers.

In short, RAC Approved Dealer status is a seal of quality. The used car market is often unreliable, and many people have horror stories to share. The RAC's checks give buyers the peace of mind they need before driving away from the forecourt.

In addition, approved dealers offer RAC-backed warranties . These cover parts and labour costs in the event of a mechanical or electrical failure.

It's important to note that an RAC-approved car isn't guaranteed to be free from problems. After all, the RAC can't physically check every car in every dealership. However, it does offer reassurance before a purchase.

What inspection standards apply?

RAC Approved Dealers carry out thorough inspections before putting a car up for sale.

These include a vehicle history check, vehicle checks and a road test. The tests comprise their 82-point Approved Vehicle Preparation Standard .

The vehicle history check involves verifying the VIN: the unique, 17-character code that identifies a car. History reports are checked along with scheduled maintenance history and engine numbers. MOT certificates are validated.

The dealer then checks the whole vehicle for problems. They inspect the exterior for corrosion, misaligned panels, dents, paint cracks and any problems with the fuel filler and windscreen.

Windows, lights, wipers, electronics – all are checked for quality. The tyres (including the spare) are also checked to ensure a minimum tread depth of three millimetres.

The underbody is checked. The exhaust and mountings must be in good condition, and there needs to be no oil or coolant contamination.

Last but not least, the car is road-tested. The assessor checks:

The starting system
The clutch
The gearbox
The suspension
The brakes
The speedometer and other gauges
Cruise control
The anti-lock braking system (ABS)

They also listen out for unusual noises and check for leaks and heavy emissions.

What does RAC Approved Dealer status guarantee about a car?

RAC Approved Dealer status guarantees that every used car the dealer sells has undergone RAC checks and comes with a warranty.

The car will have passed the 82-point check, undergone a vehicle history check and come with a three-month warranty and 12 months of breakdown cover.

This isn't to say that a used car sold by an RAC Approved Dealer won't have problems in the future. The preparation checks assess the vehicle's current condition and can't predict problems down the line.

It's also important to note that general wear and tear is excluded from the standard warranty. This includes wear and tear on brake pads, discs, clutch friction plates, wiper blades, filters and tyres. There is also a "total claims limit", meaning you can't claim unlimited free repairs.

At Zoomo, we offer Platinum Plus protection on selected vehicles. This does cover wear and tear on certain components.

Why is RAC Approved Dealer status non-negotiable when buying a used car?

The second-hand market is fraught with difficulties. Cars often have hidden mechanical issues, and buyers find themselves battling with poor aftercare from the dealer. People get burned. RAC Approved Dealer status is a mark of quality to prevent this from happening.

It's an independent assessment, meaning that you don't have to rely entirely on the dealer's word. The car you buy is far more likely to be roadworthy – and the dealer more likely to be trustworthy – if it's received the RAC's approval.

How we can help

Zoomo is an RAC Approved Dealer in Newcastle , serving customers across the North East and beyond.

We sell used cars on finance, putting buyers in touch with a wide panel of lenders. This helps ensure that a poor credit score doesn't mean a rejected application.

As an RAC Approved Dealer, all our cars – from hatchbacks to SUVs – are inspected in line with the RAC's 82-point check. Most also come with a free three-month warranty.

Too busy or too far away to visit in person? We deliver to customers in Newcastle, the North East and Scotland.

So, if you want a car on finance and extra peace of mind, we're the dealership you need.

Your questions answered

Looking for bad credit car finance in Newcastle ? It only takes two minutes to apply online – and thanks to our soft-search eligibility checker, it won't affect your credit score at this stage.

The September plate change: is it really the best time to buy a car?

Fri, 11 Sep 2026 07:17:01 GMT

Are you looking to buy a used car? Find out if September's plate change makes it the best month to buy.

Twice a year, new vehicle registration plates come out in the UK.

On 1 March, new cars are given a plate with the two numbers from the current year. In March 2026, for instance, all newly registered cars had a 26. These registration identifiers continued until the end of August.

Then on 1 September, the plates changed again. A 50 was added to the two-digit year. This means any car registered from 1 September 2026 to 28 February 2027 has a 76.

Then on 1 September, the plates change again. A 50 is added to the two-digit year. This means any car registered from 1 September 2026 to 28 February 2027 will have a 76.

Some people say September is the best time to buy a used car precisely because the plates are changing.

At first glance, this might not seem obvious. Why would a change of reg plate lead to a better price?

Well, a few factors are at play. First, cars registered right at the start of a new plate season hold their residual value for longer. If you think you might want to resell the used car, this can be worth considering.

But perhaps more importantly, these September deals are down to dealers clearing out old stock in time for freshly registered stock. That means dealers might be more likely to make competitive offers.

It's a good time to buy, for sure – but is it the best ? Before we answer that, let's take a closer look at how and why plate changes affect used car prices.

Why do plate changes affect sales prices?

In the used car market, prices depend on a range of factors. One is age.

When the plates change in March or September, cars age by a year. This means that, in many cases, the value of the car drops – though by how much changes from dealer to dealer.

September can be a good time to bag a deal, but you shouldn't expect a jaw-dropping price cut. That's more common in the luxury car market. In the used car market, there are bargains to be found, but they may not fall into your lap.

Think of it this way. In reality, a car registered the day before the plate change is just as fresh as one registered on the day of the change. But to a buyer, the day-older car now appears six months old rather than a day.

On top of this, there's a rush to buy new cars when the plates change. This manifests as a sudden flood of part-exchanges and trade-ins. More used cars means lower prices.

You can find bigger discounts just before the plate changes, as dealers seek to clear out their forecourts in anticipation of the March or September rush.

So if you're looking to buy a used car, you may want to wait until the end of the plate change season (February or August).

Why do used car dealership stock levels peak in September?

Used car stock levels peak in September because new reg plates appear on forecourts.

Drivers want a box-fresh car with an up-to-date plate, meaning more part-exchanges and trade-ins. That means dealerships have more used inventory than usual.

This overlaps with the quarterly business year. Dealerships and manufacturers have end-of-quarter sales goals to meet, and September is the end of the third quarter.

This can mean bargains for the buyer. Dealers always want to close a deal, of course. But at the end of a quarter, they can push harder and, in some cases, offer perks to sweeten the deal.

Last but not least, dealerships tend to be on the quieter side in the summer months when buyers are on their holidays. This is a time when dealers prepare their inventories for September.

How to use timing to your advantage

The September plate change has a definite effect on the used car market. But if you want to buy a used car, 1 September isn't necessarily the best day to buy. The most mouth-watering bargains often appear a little later on – late September through October.

It's also worth noting that September isn't significantly better than March, with Autotrader mentioning them in the same breath.

What's more, it can be best to buy just before the new plates hit the market: February in time for March or August in time for September.

At these times, dealerships are taking a broom to the forecourt, creating space for a big influx of used cars.

This doesn't guarantee you a bargain. But it's definitely a good time to look. If you find a well-stocked dealership and a salesperson keen to hit targets and earn bonuses, you could be in luck.

How are car number plates formulated?

UK car reg numbers are created by the Driver and Vehicle Licensing Agency (DVLA). They use a standard seven-character format. This tells you where and when a vehicle was registered.

The first two letters show the region where the vehicle was registered: A for Anglia, say, or M for Manchester. The second letter tells you the local office.

The middle two numbers show the six-month period when the car was registered: 1 March to 31 August or 1 September to 28/29 February.

The last three letters are a random combination. The DLVA assigns these random letters to dealerships in blocks.

Does a car registration expire?

No. A car's registration lasts for the life of the car. However, the certificate for a personalised number plate expires every 10 years.

When was car registration introduced in the UK?

Car registration in the UK was introduced in 1904 after the Motor Car Act 1903 was passed. This made vehicle registration and number plates compulsory.

Based in northeast England, Zoomo is a used car dealership and specialist car finance broker. Are you looking to finance a used car in Newcastle ? Try our eligibility checker today. It only takes two minutes and won't affect your credit score at this stage.

Automatic vs manual: which should you buy on finance?

Mon, 07 Sep 2026 06:30:59 GMT

Want a car on finance but can't decide between manual and automatic? Explore running costs, finance costs, servicing and other considerations.

Around two-thirds of the cars on UK roads have a manual transmission. The driver holds the gearstick, presses the clutch and changes gears without help from the car.

Increasingly, however, drivers are turning to automatic cars and holding automatic-only licences. In August 2026, the AA reported that "automatic tests accounted for 29.4% of all car driving tests in 2025/2026, up from around four percent in 2007/08".

There are several advantages to driving an automatic. Driving in stop-start conditions like rush hour no longer involves constant clutch control, and learners can pay more attention to their position on the road.

Meanwhile, modern automatic gearboxes provide seamless gear changes. Plus, as we see more EVs and hybrids on the road, automatics look to be the way of the future.

But when buying a car on finance, is automatic or manual the way to go? How do running costs, insurance, finance costs, servicing and resale value affect your options? In this article, we find out.

Running costs

The old adage is that manuals are cheaper to run than automatics. This is no longer always the case, especially with modern cars.

In terms of fuel economy, manuals and automatics are pretty similar. A modern 1.5-litre petrol car with a manual transmission doing 10,000 miles a year could cost £1,455 a year in fuel. An automatic equivalent would cost around £1,515 a year.

That's just an example. The exact cost differences will depend on the age of the car and shifting fuel prices. But it's safe to say servicing and sticker price are more significant factors than fuel.

Servicing

On the whole, manuals are cheaper to service than automatics. The big differences lie with clutches on manuals and gearboxes on automatics.

Clutch replacements on manual cars are expensive. On average, they cost around £670 . This price can go up if there are also problems with the dual-mass flywheel (DMF).

On automatics, meanwhile, a failed DSG, CVT or other automatic gearbox can cost thousands to repair.

It's a tricky cost to factor in. You never know, after all, when or if your clutch or gearbox will fail.

It's worth keeping in mind, however, if you're counting the pennies and not fully sold on either a manual or an automatic.

Sticker price

In the UK, automatic cars typically have a sticker price of around £1,000 to £2,000 more than an equivalent manual vehicle.

This is especially true of newer automatics with their sophisticated tech and hydraulic components.

And on the second-hand market, manuals have supply on their side. There are plenty of manuals on the market, pushing prices down.

This is changing, however. As the demand for automatics rises, the price gap between automatics and manuals is slowly but noticeably closing.

Insurance

In general, automatic cars are more expensive to insure than manuals.

There are a few reasons for this. One is the fact that automatic gearboxes are more expensive to repair than manual gearboxes. On top of this, automatics often have a higher spec and a higher price tag to match.

Finance costs

The difference in sticker prices for manual and automatic cars is reflected in car finance costs. Automatic cars have higher total vehicle costs, so monthly finance payments tend to be higher, too.

This is true for both hire purchase (HP) and personal contract purchase (PCP) agreements.

Resale value

The increasing demand for automatics and the decline in the manufacture of new manuals mean automatics generally hold their resale value better than manuals.

This is also due to the rise in automatic-only licences. An increasing number of second-hand buyers are legally unable to drive a manual, increasing the potential resale value of automatics.

There are exceptions. Some manual cars have collector's value or specific driving advantages. But on the whole, the trend is clear: if resale value is a priority, automatic is the way to go.

Key considerations

So, which is right for you? Take a look at these scenarios and decide which option best fits your situation.

Manual

You want to pay less on finance.
You want to get an older or cheaper used car.
You don't want to risk paying for an automatic gearbox repair or replacement.
You're happy with manual driving.

Automatic

You can afford the extra on your monthly car finance repayments.
Most of your driving is in congested areas ("stop-start" driving).
You've got your eye on a newer, higher-spec car.
Resale value is important to you.

Ultimately, it comes down to you – your budget, your driving circumstances and your plans for future sales and purchases. A car finance broker can offer pointers, but at the end of the day, you're the only real authority.

If you're making the decision based solely on budget, however, manual cars are cheaper and, for many, just as pleasurable to drive. This is true whether you're buying new or used, upfront or on finance.

Are all hybrid and electric vehicles automatic?

Full self-charging hybrids and plug-in hybrids are automatic. Mild hybrid (MHEV) models have a small electric motor and are sometimes paired with a traditional manual gearbox.

Meanwhile, most electric vehicles have a single fixed gear rather than a multi-gear transmission.

When were automatic cars invented?

The first automatic transmission dates from 1921, the work of Canadian engineer Alfred Horner Munro. The first mass-produced, commercial example, however, was General Motors' Hydra-Matic in 1940.

Can a manual driving licence holder drive an automatic car?

Yes, a manual driving licence holder can drive an automatic car. As the name suggests, however, you can't drive a manual car with an automatic-only licence.

Based in Newcastle upon Tyne, Zoomo is a car dealership specialising in bad credit car finance. Looking for an easy-to-drive runaround? Browse our automatic cars for sale in Newcastle today.

Car finance declined? Here's exactly what to do next

Fri, 04 Sep 2026 07:48:54 GMT

Getting declined for car finance is a blow. Find out what steps you should take to maximise your chances next time.

If you've been rejected for car finance, we sympathise. It's a setback, for sure – but it's not always the end of the story.

Before we go any further, there's one essential point to make. If you've just been refused car finance , don't immediately apply again .

That's because making lots of applications in a short period can affect your credit score. And the worse your credit score, the harder it is to get finance in future.

Here at Zoomo, we aim to help drivers in the North East access car finance, no matter their credit rating. We believe that a low credit score shouldn't be a significant factor when looking for a car – whether for work, leisure or other commitments.

So, what should you do next? Here are seven concrete steps you can take.

Steps to take after a car finance rejection

1. Check your credit reports

It's possible you were rejected because of an error in your credit file.

To find out, get a copy of your credit report from the three main credit reference agencies (Experian, Equifax and TransUnion). Look for any of the following:

Wrong addresses
Missed payments that you actually paid
Outdated financial links (for instance, a link to someone you used to share a bank account or mortgage with)

If there are mistakes, get them corrected. This might help your next application.

2. Find out why you were rejected

Credit applications are like job applications – you can always ask why you were turned down.

The most common reasons that applications are rejected are:

A low credit score
Records of missed payments
Failing to meet an affordability check

So, ask! That will tell you whether you were rejected because of a low credit score (your financial history) or the affordability check (your current financial situation).

Once you know this, you're in a better position to make changes ahead of your next application.

For instance, if the issue is your credit history, you can do all you can to make your next lot of payments on time. You can also register to vote if you haven't already, as this can improve your credit score.

If affordability is the issue, things are a little tougher. It might mean working more hours or trying to secure a better-paying job. That's hardly easy – but at least you'll know where to start making changes.

3. Wait

In a way, this is the most important step of all. If you apply soon after a rejection, you could negatively impact your credit score.

Why? Because a lender will look at your credit score and see that you were rejected. This is a red flag to lenders who, above all, want their money back.

There's no legal waiting period. There's nothing stopping you from applying again straight away. But it's better to wait at least 30 days – and ideally, three to six months. This lets the dust settle on your application and means your credit file will reflect any positive changes you've made.

4. Save a deposit

Saving is difficult – especially if your application was rejected because of affordability. But if you can save a deposit, you increase your chances of getting accepted in future.

That's because the bigger the deposit, the less the lender has to lend and the less risk they take on.

5. Apply for a cheaper car

It may be that you applied for a car that required too big a loan from the lender. You can attempt to remedy this by picking a less expensive car. This will lower the monthly payments and could help you pass the lender's affordability checks.

6. Use soft searches

A direct application for car finance is a hard search, which leaves a black mark on your credit file. Where possible, look for brokers or lenders offering a soft-search eligibility checker.

This avoids multiple searches that can negatively impact your credit file. Instead, you get to gauge your chances through a soft search before committing to an application.

That's one of the key advantages of working with a car finance broker like us rather than going directly through a lender.

7. Work with a bad credit car finance broker

A car finance broker is like a comparison site. You can access a wide panel of specialist lenders rather than finding them yourself one by one.

These lenders are known for lending to people with bad credit. They'll consider your current affordability as much as – or more than – your credit score, defaults and County Court Judgments (CCJs).

This helps protect your credit score. A car finance broker will use soft credit checks to find out your eligibility, leaving no trace on your credit score.

This can help avoid what's sometimes known as "rejection spirals". This is where a driver makes lots of direct applications and gets rejected again and again. A broker will instead find an appropriate match before you agree to the formal application.

And because the car finance broker has existing relationships with these lenders, you're not wasting time applying to lenders who won't consider your application.

So, if you've been rejected for car finance, your best bet is either to:

Wait and rebuild your finances
Or approach a poor credit car finance broker for help

Can car finance help improve my credit score?

If you get a car finance agreement and make consistent monthly payments, you can steadily rebuild your credit score over time. This will make it easier to apply for other kinds of finance in future.

Why are car finance applications rejected?

There are four main reasons why car finance applications are rejected. These are a poor credit score, affordability issues, application errors and the kind of car you apply for falling outside the lender's policy.

Zoomo specialises in securing bad credit car finance in Newcastle . Have you been rejected in the past and want to know your chances today? Try our eligibility checker . It only takes a minute, and it won't affect your credit score at this stage.

Should I buy a hybrid car? The no-nonsense answer

Tue, 01 Sep 2026 07:45:33 GMT

Unsure whether to get yourself a hybrid electric vehicle (HEV)? Explore the pros, cons and what your options are.

So, you're ready to buy a used car. You'll have no doubt noticed there's a lot of hype about hybrid cars in particular.

Hybrid cars, the argument goes, provide the best of both worlds. They're a stepping stone towards going fully electric, giving drivers improved fuel economy and lower emissions.

In a sense, it's an easy argument to make. Going electric is a big deal. Why wouldn't you dip your toe in before going the whole hog?

Well, the hybrid fans have a point – up to a point. Hybrid cars have plenty of advantages, but they're definitely not for everyone.

As with any decision like this, it all depends on one thing: you. Some people's driving lives and finances make hybrid cars the obvious choice. Others don't.

Here at Zoomo, we stock a range of hybrid cars . Could one of them be the right vehicle for you? Let's explore the factors you should take into account.

Different drivers, different cars

What kind of driver are you? Answering this question in detail is your best guide to whether you should buy a hybrid car.

Hybrid cars are great if you're a regular town driver and spend a lot of time stopping and starting. In this situation, regenerative braking can help you make meaningful savings.

A hybrid car could also be a solid investment if you plan to keep the car for several years. Without this long-term thinking, you may find yourself overspending.

Finally, you might want to go for a hybrid if you don't currently have – or can't foresee having – convenient home charging.

For drivers who clock up fewer miles and spend most of their time on the motorway, hybrids help – but the savings are smaller. And for those who can charge at home, it makes more sense to go electric.

What are the advantages of hybrid cars?

There are four main advantages of hybrid cars:

They offer better fuel economy than their petrol counterparts.
They have lower emissions.
They're technologically reliable.
They provide a smooth, quiet driving experience in the city.

What are the disadvantages of hybrid cars?

The most obvious disadvantage of a hybrid car is its higher upfront price tag compared to a similar petrol model.

You may also end up spending more on repairs that fall outside your warranty. The counterpoint is that hybrid batteries often last many years.

A more minor consideration is that boot space in a hybrid car can sometimes be on the small side. That's because of the space that the battery takes up.

Mild hybrid vs full hybrid vs plug-in: what are the differences?

When you start to dig into the subject of hybrid cars, you'll soon see there are different kinds:

Mild hybrids (MHEVs)
Full hybrids (FHEVs)
Plug-ins (PHEVs)

Mild hybrids

A mild hybrid has a small electric motor and battery that assist the petrol or diesel engine. This setup can help the engine when accelerating, braking and restarting. It can't, however, power the car by itself.

Mild hybrids are best for drivers who want better fuel economy without significant changes to their driving habits.

Full hybrids

Full hybrids have a bigger battery and a more powerful electric motor. Drivers can use these to drive on electric power for short periods and can switch between petrol and electric. The battery recharges itself through a combination of the engine and regenerative braking.

These are the classic hybrid cars. They're best for driving in urban areas with plenty of stopping and starting.

Plug-in hybrids

Last but not least, there are plug-in hybrids. These have much bigger batteries that must be charged from external power sources.

Plug-in hybrids can drive long distances using only electricity. Petrol is used only once the battery is running low.

What are the typical running costs for a hybrid car?

There's a range of running costs to consider before committing to a hybrid car. These include fuel costs, servicing, insurance, vehicle tax and depreciation.

Fuel costs

With fuel costs, the differences are most apparent when you go full hybrid.

If fuel costs £1.45 per litre and you drive 10,000 miles a year, a petrol car averaging 45 miles per gallon will cost about £1,460 a year. However, a full hybrid averaging 60 miles per gallon will cost about £1,100 a year.

The running costs of plug-in hybrids depend on charging. A 12 kWh battery charged at 30p/kWh costs around £3.60 for a full charge. If that covers 40 miles of driving, you'll be paying about 9p a mile.

Servicing

On the whole, servicing for hybrid cars is similar to petrol cars. The main saving comes from the fact you'll be less likely to have to change your brake pads because of regenerative braking. It's also worth considering that hybrid batteries last many years.

Insurance

Insurance will mostly cost about the same as an equivalent petrol model. That said, plug-in hybrids can cost more to insure (because they're more expensive to repair) and your premium will differ from model to model.

Tax

Vehicle tax for a hybrid car in the UK is £200 per year from the second year onwards. This applies only if the vehicle was registered on or after April 1, 2017.

Depreciation

The largest ownership cost is often depreciation. However, reliable models tend to hold their value well. You can also reduce depreciation by buying a car that's between two and four years old.

How we can help

At Zoomo, we stock petrol hybrids and petrol plug-in hybrids as well as diesel, electric and petrol cars.

So, if you're looking for a used hybrid car for sale in Newcastle , why not take a look at our current stock ? With flexible finance deals available – and a whopping 96% acceptance rate – a fresh set of wheels could be closer than you think.

RAC warranty on a used car: what is actually covered?

Tue, 01 Sep 2026 00:29:13 GMT

What is RAC warranty cover and how does it apply to used cars? Find out what's covered and why it matters.

When buying a used car, getting warranty cover is an important consideration. Not all used cars come with a warranty as a matter of course.

Here at Zoomo in Newcastle upon Tyne, all our used cars come with a three-month RAC maintenance and repair warranty. And for a bit extra, you can extend the insurance term to up to 48 months (four years).

Getting a used car warranty is a sensible idea in almost all cases. It helps cover any unexpected repair bills and gives you peace of mind if critical components like the engine, gearbox or electronics fail.

The alternative is to shoulder the cost of major failures – costs that can go into the thousands.

All used cars benefit from a warranty, but it's especially important to get one if you buy an older vehicle with high mileage.

Some warranties also give you handy extra perks like roadside assistance, towing and recovery.

It's also a good idea if you're thinking of reselling your vehicle. A transferable policy can make the car more appealing to prospective buyers.

The RAC warranty that comes with our used cars is a third-party policy covering mechanical and electrical breakdown. It provides coverage for parts and labour as well as complimentary roadside assistance.

Let's break it down in more detail.

What does the RAC warranty cover on a used car?

RAC used car warranties cover the cost of the parts, labour and VAT needed for the repair or replacement of mechanical and electrical components. It comes in different tiers.

These range from basic to comprehensive protection.

Silver Cover is the basic tier. It focuses on core components – the engine, gearbox and core mechanical systems.

Next is Gold Cover. This middle tier covers a detailed list of mechanical and electrical components. That includes high-tech parts that may apply to older vehicles with higher mileage counts.

Finally, there's Platinum and Platinum Plus. These are the highest tiers, which cover most mechanical and electrical components against failure.

Whichever tier you choose will cover core components. These typically include:

The engine, including pistons, camshafts, valves and the oil pump
Gearbox parts, torque converters and clutch components
The steering rack, power steering pump and suspension joints
The water pump, radiator, thermostat and fuel injectors
The alternator and starter motor

If there's a particular part you need covered, check before you take out the warranty cover.

What level of cover does Zoomo provide?

When you buy a car from Zoomo , you get a three-month RAC warranty as standard. There's no extra charge for this – and no hidden costs hiding in the small print.

We provide two levels of cover depending on the vehicle you buy – Platinum or Platinum Plus.

You'll also benefit from:

12 months of RAC Breakdown Cover
Car hire support during longer repairs
Up to 60 days of European use
Zero excess to pay

Learn more about our RAC Warranty .

What doesn't RAC warranty cover on a used car?

RAC warranty cover doesn't always cover wear and tear – for instance, brake pads, discs, clutch friction material, wiper blades and tyres. However, the Platinum Plus tier does cover wear and tear on eligible components.

Cosmetic damage to the bodywork, paint, glass, upholstery and interior trim is also excluded from the warranty.

Last but not least, you aren't covered for failures caused by driver neglect. For instance, any damage or failure that happens after the warning light has appeared or because of late servicing must be repaired out of pocket.

How do claims work?

To make an RAC warranty claim, there are a number of steps to take. You'll need to find an approved garage or mobile mechanic and book a diagnostic test. Once the garage has checked with the RAC that you have coverage, the RAC will carry out the repair.

The garage needs to be an RAC-approved repairer or VAT-registered. When you book the diagnosis, you should drop the vehicle off so the garage can identify the fault.

It's important to check coverage before you make a claim. RAC warranties come in different tiers, and each tier covers different sets of components. You should keep in mind that wear and tear is generally excluded.

You should also make sure to maintain service records. If you haven't serviced the car in a timely fashion, your claim can be invalidated.

You should also be aware of payout limits at your policy level. Otherwise, you could be disappointed by the amount you get.

Why does it matter when buying a used car?

A used car warranty matters because it protects you from the unexpected – and the costs that come with it.

In particular, it protects you against the money you'd otherwise have to pay for mechanical and electrical repairs. For many drivers, this peace of mind is indispensable.

If you're buying from a private seller, getting a used car warranty reduces anxiety. If you've been sold a car with problems you didn't detect, you're financially covered.

And if you're buying from a dealer, complimentary warranty cover is a vote of confidence. It shows the dealer has done the relevant checks on the vehicle and is confident it's roadworthy.

Finally, used warranty cover helps you budget effectively for your new vehicle. This can be useful when trying to tot up the various costs of your purchase.

Who else provides warranty cover on used cars?

Other warranty cover providers include the AA, Warrantywise, ALA Insurance and MotorEasy. You can also get it through many used car dealerships. At Zoomo, for instance, we offer Zoomo Protect – an extended warranty that helps protect you from unexpected costs for up to 48 months.

Is warranty cover the same as insurance?

Both warranty cover and insurance offer financial protection for used car owners.

However, a warranty covers mechanical or electrical faults or breakdowns, while insurance provides protection against things like accidents, theft, loss and fire.

Zoomo is a car dealership in Newcastle that specialises in securing finance for just about anyone – regardless of credit history. Learn more about our RAC Warranty cover or the Zoomo Protect extended car warranty .

What to check before buying a used car [complete checklist]

Tue, 01 Sep 2026 00:10:56 GMT

Are you getting ready to buy a used car? Here's a list of things to check before you sign on the dotted line.

Buying a car is a big deal. So, it's no wonder many people approach the process with a level of caution.

After all, this will likely be your ride for a while. If it's not what you bargained for, you'll wish you'd thought harder about your purchase.

On top of this, car dealers have a reputation for being aggressive and manipulative. This is far from the truth – speaking for ourselves, at least – but it does colour some customers' visits to the showroom.

So, what should you check before you buy? The answer to this question covers:

�� The vehicle's paperwork and history
�� Its exterior and bodywork
�� What's under the bonnet
⚡️ The electrics
�� How the handling feels on a test drive

It's a lot. The good news is that if you buy from an RAC Approved Dealer like us, most of this has been done for you. That can't be said for the majority of private dealers.

Whoever you buy from, here's a checklist of things to tick off before you drive away from the dealership. We hope it helps you have a stress-free purchasing experience.

1. Paperwork

A major danger of buying from a private seller is that it can be hard to find out the vehicle's history. Is the car exactly what the dealer says it is?

This concern is one of the main reasons why people choose to buy from RAC Approved Dealers.

To learn about a vehicle's history, your first port of call should be the V5C logbook. This is the official DVLA document that registers the vehicle and names its keeper.

Before buying a used car, make sure the vehicle identification number (VIN) matches the car. If you're buying from a private seller, make sure the keeper's name and address match theirs.

You should then go to the official DVLA vehicle history checker to find out:

Where the car was first registered
The size of the engine
The type of fuel it takes
Its tax status
Its colour

It will also tell you if the car has outstanding finance, has been written off or has had its mileage clocked.

After this, you can use the official MOT lookup tool to find past test results, mileage records, advisories and reasons for failure.

Finally, on the paperwork front, you should check the service book, looking for evidence that the car was regularly serviced.

☐ V5C logbook

☐ Vehicle history

☐ MOT

☐ Service book

2. The exterior

Next, you should check the exterior of the car you're about to buy. At its most basic, this involves walking around the car and looking for any obvious marks, defects or problems. But there are a few things that might not be immediately obvious on a walkaround.

First, you should take a look at the panel gaps – for instance, where a door meets a wing or where a bonnet meets a headlight. Any mismatches or patchy paintwork point to shoddy repair jobs after an accident.

You should then check the wheel arches and sills and under the boot carpet for any structural rust.

Finally, take a good look at the tyres. They should be in good condition and above the minimum legal tread depth (1.6mm). If not, you could be in a position to negotiate.

☐ Panel gaps

☐ Rust

☐ Tyres

3. What's under the bonnet?

Before you commit to buying a car, you should look under the bonnet.

This involves looking for any leaks – telltale signs are fresh patches of oil or drips below the engine. You should also check the oil and coolant for any discolouration or dirt.

Last but not least, you should check the suspension. This is easily done: simply push down on each corner of the car. If it rocks up and down, you've got a problem. If it bounces and quickly settles, you're good to go.

☐ Leaks

☐ Oil and coolant

☐ Suspension

4. Checking the interior and electrics

The interior of the car is as important as the exterior, for obvious reasons. Check for any wear and tear on the pedals, steering wheel and seats. If it doesn't fit the reported mileage, the seller may be trying to hoodwink you.

Next, check all electrics – air con, windows, infotainment and windscreen wipers.

Finally, you should check that the warning lights work. Turn on the ignition and make sure all the warning lights on the dashboard turn on.

☐ Wear and tear

☐ Electronics

☐ Warning lights

5. Test Drive

Last but not least, you should take the car for a test drive. The engine should start smoothly without any unusual taps, knocks or hisses.

When it's safe to do so, brake firmly. The car should stop in a straight line. If it pulls to one side, there's an issue with the brake.

You should also check that the gears shift smoothly without any resistance or grinding. In a manual car, check that the clutch doesn't slip when stepping on the gas.

☐ Starting up

☐ Braking

☐ Gearbox and clutch

The full used car buying checklist

Paperwork

☐ V5C logbook

☐ Vehicle history

☐ MOT

☐ Service book

Exterior

☐ Panel gaps

☐ Rust

☐ Tyres

Under the bonnet

☐ Leaks

☐ Oil and coolant

☐ Suspension

Interior and electrics

☐ Wear and tear

☐ Electronics

☐ Warning lights

Test drive

☐ Starting up

☐ Braking

☐ Gearbox and clutch

What next?

Once you've carried out these checks, you're ready to buy or apply for car finance.

It's worth noting that an RAC Approved dealer like us will have carried out most of these checks for you. That's one of the biggest reasons why people choose accredited dealers over private sellers.

When buying a used car, it's better to be safe than sorry. Check each item off the list and you'll boost your chances of a smooth purchase – and many smooth drives to come.

As an RAC Approved Dealer, Zoomo thoroughly checks all vehicles – including their history – before they go on sale. Are you looking for a used car in Newcastle ? You can buy with confidence from us. Browse our full range of cars to get started.

Student car finance: everything you need to know before applying

Mon, 31 Aug 2026 23:36:39 GMT

Are you a student looking for car finance for a used or new car? Learn the criteria for applying and how to boost your chances.

Are you a student looking for a car finance deal on a new or used car? Exciting times are ahead – as long as you keep a few key factors in mind.

First, let's get the basics out of the way. To get car finance, you must be at least 18 and hold a valid UK driving licence.

So far, so simple. Things start to get a little knottier when you explore the world of repayments.

The fact is, not all applications for car finance are accepted. And more often than not, rejections are made because the lender decides the applicant isn't a safe pair of hands.

When we say "safe pair of hands", we're not talking about your steering prowess. We're talking about the one thing lenders care about: your ability to pay back the loan.

This guides lenders' decision-making. Can this person make the repayments? If the answer is "yes" or "almost certainly yes", you're good to go.

But if the answer is anywhere on the scale from "heck no" to "hmmm", you're unlikely to get the loan – at least not the first time around.

If you fall into the second category, you can apply again with a guarantor – someone you know who will cover the loan if you can't make the payments.

In a similar vein, you can reapply with a part-time income. This will help you demonstrate to the lender that you can repay their money.

But how do lenders decide whether you can make the repayments? It's a question worth answering before we delve into key considerations.

How do lenders decide if you're a low-risk borrower?

When you apply for car finance, you need to demonstrate that you're financially stable. There are two main aspects to this: your income and your credit history.

If you can demonstrate a steady income that will cover your payments, lenders will beckon you to the dotted line. If things are looking spotty, they're likely to turn you down.

Then there's the question of your credit history. This is found in your credit report and reflects your financial history over the last six years.

Every time you miss a payment, it goes on your credit report. This means that a "poor" credit score – this is industry terminology, not us throwing shade – is likely to be rejected.

The main thing is reliability.

Look at it from the lender's perspective. Who's more reliable – someone with a steady income and a poor credit history or someone with insecure income and a spotless credit history?

These things all come into play when you're applying for car finance. Here are the key things to consider before firing off an application.

What to consider before applying

When you apply for car finance, the lender will assess your eligibility and your budget – so you need to assess these first.

First off, you'll need to provide proof of income. If you're a full-time student, your income is likely to come mostly or entirely from student loans. This means you may need a part-time job or to apply with a guarantor to boost your chances of approval.

Secondly, you'll need to consider your credit history. Having no credit history is just as risky to lenders as having a bad one. So, make sure you register on the electoral roll and build your credit score (more on this later).

Thirdly, consider applying for car finance with a broker. This is a third party that matches you to a panel of appropriate lenders.

If you apply directly for car finance, the application will be classed as a "hard search" and go on your credit score. Too many applications can make you a riskier proposition to lenders.

If, however, you go via a car finance broker, the eligibility checks are "soft searches". These are invisible to lenders on your credit report.

Next, you should factor in the costs of running a vehicle that go beyond the car finance repayments.

These include your deposit, monthly fuel allowances, road tax, maintenance and insurance. With insurance, you should bear in mind that young drivers often face higher premiums.

Last but not least, you should decide what kind of car finance you're applying for. The two main types are hire purchase (HP) and personal contract purchase (PCP) .

Both consist of a deposit followed by monthly repayments. The key difference is that an HP agreement ends with you owning the car. With PCP, you either hand the car back or make a large final payment to own the car. Monthly repayments tend to be lower in PCP agreements.

Does part-time income affect car finance?

Yes and no. Lenders want to know you can meet the repayments. This means that consistency and amount of income are more important than the number of hours worked.

You can increase your chances of approval by combining your part-time wages with another source of income or a larger deposit.

How to boost your chances

By this point, you may be worried that you won't be approved. There are, however, some concrete steps you can take to boost your chances.

First, you can put down a larger deposit. This lowers the total amount you need to borrow and reassures the lender that you have the funds to repay them.

Secondly, you can apply with a guarantor. This is someone who co-signs the agreement with you and agrees to make the repayments if you can't.

Finally, you can intentionally build your credit and improve your credit score before applying for finance. You can do this by registering to vote, making sure you pay all your bills on time and keeping any credit card balances low.

Zoomo is a specialist bad-credit car finance broker based in Newcastle upon Tyne. Learn more about student car finance , or jump right in and apply for car finance today .

No-deposit car finance: how it works and who can get it

Mon, 31 Aug 2026 08:14:00 GMT

Want to buy a car without putting down a deposit? Find out if you're eligible in our jargon-free car finance guide.

When exploring car finance, you'll see that most agreements are split into three phases.

First, you put your deposit down. Next, you pay off the money you're lent in fixed monthly instalments. Finally, the agreement ends and, depending on the type of car finance, you either take ownership of the car or return it to the dealer.

If you're strapped for cash, you might well wonder whether you can skip the first phase and move straight to monthly repayments.

The answer is yes – in many cases, at least.

How it works is simple. Instead of putting down cash on day one, you borrow the full value of the car. That cost is then spread across fixed monthly instalments (with interest).

No-deposit car finance is a popular choice for buyers at different ends of the financial spectrum – from people with strong financial profiles to people with defaults, CCJs (county court judgments) and poor credit histories.

Here at Zoomo, we provide low-deposit and no-deposit car finance in Newcastle . But before we fill you in on our offerings, let's take a closer look at how it works and who's eligible.

How does no-deposit car finance work?

With standard car finance, you pay an initial deposit for a car and drive it away soon after. You then cover the remaining cost (plus interest) with fixed monthly instalments.

The difference with no-deposit car finance is simple: you skip the initial deposit and move straight to repayments.

Like other car finance agreements, no-deposit car finance can be used to buy both new and used cars.

Who can get no-deposit car finance?

To get no-deposit car finance, you must pass the lender's credit and affordability checks. Whether you're eligible will depend largely on your credit history and proof of your disposable income.

What lenders want is to know that you can comfortably make the repayments. Aside from this, there are very few constraints on who can get car finance.

Who needs no-deposit car finance?

People who apply for no-deposit car finance tend to fall into one of two categories.

First, there are buyers with good or excellent credit. Mainstream lenders will often offer no-deposit or 0% APR deals to these buyers, reassured by their strong financial profiles.

If this doesn't sound like you, you needn't be put off. Specialist bad-credit lenders like Zoomo also offer no-deposit car finance to people with defaults, CCJs or poor credit histories.

Whatever your circumstances, you should consider your options before applying for no-deposit car finance. To help you decide, let's weigh up the advantages and disadvantages.

What are the advantages of no-deposit car finance?

There are three main advantages of taking out a no-deposit car finance agreement.

�� You don't have to pay any upfront costs. You can drive away from the dealership with your savings intact.
�� By making monthly payments but no upfront payment, you can have better cash flow (depending, of course, on your unique financial circumstances).
�� If you have a poor credit score, a no-deposit car finance agreement can help you build or repair it. However, that depends on you making the repayments in full and on time.

What are the disadvantages of no-deposit car finance?

Now for the disadvantages. Here are three reasons why no-deposit car finance might not meet your needs:

�� Your monthly repayments will be higher than if you pay a deposit. That's because you're borrowing 100% of the car's value.
�� Because the loan balance is larger, you'll end up accumulating more interest over the term of the agreement.
✋ Lenders tend to be stricter in their eligibility requirements than when the agreement starts with a deposit.

Let's zoom in on that last point.

Lenders tend to be stricter with no-deposit car finance because these agreements are riskier from their point of view. To protect themselves, they'll take a closer look at your credit history, income and affordability.

As we say, however, a poor credit history isn't necessarily a barrier to getting a no-deposit car finance agreement.

What are the most popular car finance options in the UK?

The two most popular car finance options in the UK – with or without a deposit – are personal contract purchase (PCP) and hire purchase (HP) agreements.

In a PCP agreement, your monthly payments cover the car's depreciation (loss of value) and the interest. At the end of the agreement, you hand back the car or pay a large final balloon payment to own it outright.

A hire purchase agreement works similarly. The main difference is that when the term ends, and the final payment is made, you automatically own the car – no balloon payment required.

These two kinds of car finance agreements are offered by a wide range of lenders and dealers in the UK.

Most of the time, they begin with an upfront deposit, typically starting at 10%. The higher the deposit, the lower the repayments. In some cases, however, you can skip the deposit and start your repayment scheme right away.

How we can help

Here at Zoomo in Newcastle, we offer no-deposit car finance deals , specialising in car financing for people with poor credit histories.

If you can put down a deposit, your overall monthly payments will be lower. But if you can't, you can still drive away from the dealership in your new or used car.

We boast a whopping 96% acceptance rate – and we work with specialist lenders that are happy to lend to people with less-than-perfect credit records.

Most of the time you can get approval within an hour. Speed, efficiency and careful consideration of your current affordability, not just credit history – that's the Zoomo promise.

So, if you're looking for no-deposit or low-deposit car finance, why not apply online today ? It takes less than two minutes and uses soft-search technology, so it won't affect your credit score until you formally apply.

Cheapest cars to run in the UK: a realistic guide for 2026

Fri, 28 Aug 2026 07:06:28 GMT

Are you looking to buy a car on a budget? Explore 6 of the cheapest cars to run in the UK in 2026.

If you're looking for a car on a budget, it can be difficult to know what the true cost will be.

That's because the cost of a car is more than just the number on its price tag. You also have to take into account running costs, fuel prices, insurance and tax – what's known as the "overall ownership cost".

This is true whether you're buying a car outright or buying on finance. Occasionally, what seems like a great deal can turn out to be more expensive than you'd hoped.

In this article, we walk you through some of your best options for a car that's genuinely cheap to run. We hope it helps you find the right car for your budget.

Cheap microcars and EVs

1. Citroën Ami

Starting at £7,695 new, the Citroën Ami is a light electric quadricycle. It has two seats, a top speed of 28 miles per hour and a 46-mile range.

Because of its speed limitations, the Ami is only suitable for local urban driving. This, combined with its electric motor, makes it an especially cheap car to run.

2. Dacia Spring

With its lightness, small battery and high energy efficiency, the Dacia Spring is an exceptionally cheap car to run.

The Spring is exempt from road tax thanks to its zero-emission status, and its basic setup helps keep insurance premiums low.

It's ideal for city driving, boasting a 140-mile range and 68 brake horsepower.

3. Leapmotor T03

This small EV has a 165-mile range and a 10-inch touchscreen. Its petite battery, lightweight build and minimal maintenance requirements make it a cheap car to run. When bought new, prices start at £12,995.

Cheap petrol cars

If you're looking for a standard petrol car, you have fuel prices to contend with. Nevertheless, there's a range of cars on the market that have low overall ownership costs.

1. Dacia Sandero

The Dacia Sandero Stepway is a slightly more expensive version of the Sandero. It's taller and has a more rugged exterior.

While it's more expensive, with new prices starting from £16,065, it remains a cheap car to run thanks to its lightweight engine and simple design.

3. Kia Picanto

The Kia Picanto has a lightweight three-cylinder one-litre engine. You can use it for urban stop-and-go driving with relatively low fuel emissions.

This, combined with its lightweight body, low insurance grouping and seven-year warranty, makes it a strong contender for the cheapest car to run.

Other cheap cars to run

The cheapest used cars to run

Going used is a surefire way to secure low running costs – so long as you get a serviced, checked car with a warranty.

Used cars often come with low insurance groupings, good fuel economy, cheap parts and reliable performance.

Safe bets for cheap used cars to run include:

Toyota Yaris
Honda Jazz
Hyundai i10
Kia Picanto
Skoda Citigo
Volkswagen up!
SEAT Mii

How to save on running costs

While the car's performance matters, there are other ways you can save on running costs.

At a time of high fuel prices, one of the best things to do is shop around for fuel. Local fuel finders can put you in touch with better deals.

Unless your engine needs them, you should give premium unleaded fuels a miss. These are more expensive than standard regular unleaded petrol, usually costing about 10p to 18p more per litre.

It's worthwhile checking your tyre pressures each month. That's because tyres below the recommended pressure use more fuel.

Empty roof racks and full boots can add drag and weight to your car. While this won't make a difference on a single journey, it adds up if you drive regularly.

Your driving style can impact running costs, too. Changing gears early where possible keeps revs low and helps you avoid heavy braking.

How to save on insurance

Insurance is a key contributor to the overall ownership cost of a car. One of the best ways around this problem is to compare quotes a few weeks before your policy renews. If you let your policy auto-renew, you'll almost certainly pay more than you need to.

Can you save on vehicle tax?

Unfortunately, there's no way to save on vehicle tax with new or used cars. The exception is if you buy a car that's more than 40 years old.

Saving on maintenance and repairs

Regularly servicing your car helps you avoid costly mechanical failures. If you don't service your car, these failures won't be covered by your warranty.

It's also wise to carry out simple service tasks, such as topping up screenwash and replacing wiper blades. This won't make a huge difference to the overall ownership cost, but every little helps.

Finally, you should make sure you book your MOT early so you have time to shop around for repairs if it fails.

How we can help

At Zoomo, we specialise in securing car finance for anyone – no matter their credit history. In fact, we can boast a whopping 96% acceptance rate.

So, if you're looking for a used car on finance in Newcastle upon Tyne , we can help. Our flexible finance options mean you can choose the deal that best fits your needs and budget.

To get started, browse our fleet of used cars today .

How long does it take to get car finance? A realistic timeline

Mon, 24 Aug 2026 06:32:47 GMT

Are you thinking about car finance but don't know how long it will take to be approved? Here's a realistic timeline of the whole process.

So, you're ready to apply for car finance ? You probably have a wealth of questions, including how long it will take.

Perhaps you need the car for work, care duties or an upcoming holiday. Whatever your circumstances, you want the reassurance of knowing when approval is likely to come.

The short answer is that it depends. In the UK, car finance can be approved surprisingly quickly. The timeframe, however, will depend on how prepared you are and your credit history.

In terms of preparedness, you'll need to make sure you have all the relevant documentation to hand. This boosts your chances of getting approved in one go rather than coming and going as you search for paperwork.

And as for credit history, you've got options. If you've got a poor credit history, you can either take steps to build your score, or you can work with a specialist bad-credit car finance company .

Here at Zoomo, you can be approved within an hour – and we specialise in customers with bad credit scores. The only real obstacle to you driving away from the forecourt is the paperwork required after approval. Have that to hand, and you'll be on the road in no time.

How long does it take?

If you apply online through a lender or broker, your approval could be granted within a few minutes.

The process takes longer if you apply offline – either in person at a dealership or through a bank branch. The paperwork involved can extend the process to anywhere between one and three business days.

The next step depends on the information you provide to the lender or broker. If you give them everything they need, the decision could come through within a day.

If your application is online, you can sign the agreement in seconds. If you apply in branch, you'll have to either travel to the branch to sign the agreement or have it sent to you in the post. This to-ing and fro-ing is a key reason why many customers prefer to apply online.

Once the paperwork is completed, you should be able to drive away on the same day.

However, there are a couple of exceptions to this rule:

When the paperwork is completed on a Friday, and the dealership is closed at weekends. In this case, you should get the car within a few days.
If you buy a car that isn't currently in stock. In this case, the timeline depends entirely on how long it takes the dealership to source the car and prepare it for sale.

What can slow down the process?

Getting car finance can take a matter of days. But there are a few key factors that can slow down the process.

1. A poor credit history

The first potential cause of delays is your credit history.

This is a record of your financial and borrowing history. It includes:

Your personal details
Active and past credit accounts (such as loans, credit cards and overdrafts)
Missed payments
County court judgments (CCJs)
A log of who has searched your file

The quality of your credit history can vary for a whole bunch of reasons. The main thing to note is that a poor credit history shouldn't mean you can't get car finance. You'll just have to demonstrate that you can afford the monthly payments and apply to a broker that specialises in bad credit.

2. Paperwork

The second thing that can slow down the process is delays with paperwork. These tend to fall into two categories: personal details and proof of income.

The first category is self-explanatory, but the second may require some thought. When applying, keep in mind that a lender's priority is to get their money back. If your initial application leaves this open to question, you'll be asked to provide further proof of income.

3. Being self-employed

Self-employed customers may need to provide extra documentation. If you don't have this to hand, the process can take longer.

4. Applying out of hours

Finally, your application could take longer if you apply outside the lender or broker's business hours or over a weekend.

What can I do to speed up the process?

There are two main things you can do to speed up the process:

You can think strategically about your credit score.
You can arm yourself with the relevant paperwork before applying for car finance.

In the case of a poor credit score, there are two paths you can take.

The first involves building and improving your credit score by, for instance, registering on the electoral roll and making sure you pay all your bills and other payments on time.

The second is quicker. It involves applying through a specialist bad-credit car finance company like us.

And as for paperwork, you just need to make sure you read the lender or broker's requirements. Do this before you fill in the online form or go into the branch.

Does it take longer to go through a broker than a lender?

No. Applying through a broker shouldn't take longer than going directly to a lender. In fact, a broker can save you time by matching you to a panel of possible lenders rather than going through them individually.

How we can help

At Zoomo, we specialise in providing car finance to customers with bad credit in Newcastle and the North East of England.

It takes under two minutes to fill out the online form, and most customers get a decision within the hour.

Once you've been approved, you need to verify your personal details and income. With that out of the way, it's time to drive away in your new set of wheels.

Ready to get started? Apply online today. Still have a few questions? Get in touch with our team or read our guide to how car finance works .

The best time to buy a used car in the UK (and when to avoid it)

Fri, 21 Aug 2026 08:18:44 GMT

Some times of the year are better for buying used cars than others. Explore your options in our guide.

If you're looking to buy a used car in the UK, there are several things to keep in mind. There's your budget, of course – but there's also the kind of finance deal you're going for and even the time of year you're buying it.

Not all times of year, you see, are equally good for buying a used car. This is down to two main factors:

The fact that number plates change at certain times of year
The sales cycles and targets that dealerships plan their years by

This means your best bet is to start shopping before the new number plate changes in March and September or at the end of each financial quarter. That means March, June, September or December.

At these times of year, dealerships are keen to hit targets and get used cars off their forecourts and onto the roads.

It takes a bit of planning, sure. But it's a little bit of planning for potentially a whole lot of savings. Plus, the smile on your face as you drive away from the dealership will be priceless.

The best times of year to buy a used car

February and August

In February and August, dealerships scramble to clear old-reg stock before the new plates drop in March and September. This eagerness to get on top of the new registration plates means buyers are in a good position to bag a bargain.

There's another reason why February and August are good times of year to buy a used car. In the weeks surrounding these dates, many drivers trade in their cars. This swells the supply of used vehicles, which in turn can lead to lower prices.

The end of each financial quarter

The financial year is split into four three-month quarters, known as "Q1", "Q2", "Q3" and "Q4".

Q1 runs from January to March
Q2 runs from April to June
Q3 runs from July to September
Q4 runs from October to December

At the end of each quarter, salespeople often have targets to meet. This means they're much more likely to negotiate about the price of a used vehicle. They might even offer perks such as free servicing or an extended warranty.

Buyers can take advantage of this race to make sales. Simply make your purchase at the end of March, the end of June, the end of September or the end of December.

Out of season

Sometimes, buying out of season can work to your advantage.

In December and January, for instance, dealerships tend to experience low footfall. This is largely because people spend their money on Christmas in December and tighten their belts in January.

This relative lack of buyers can make the Christmas and New Year period a great time to find discounts at dealers and haggle with private sellers.

There are also seasonal trends for particular kinds of cars. For instance, dealers tend to sell more convertibles and SUVs in the summer months. Buying one in winter means you can take advantage of lower demand.

Midweek shopping

Shopping out of season takes advantage of the fact that demand for used cars dips and rises across the year. The same pattern applies on a smaller scale to the working week.

Head to a showroom on a Tuesday or Wednesday afternoon and you're likely to be one of only a handful of customers.

This can work to your benefit because you'll get more one-on-one attention from the sales staff, free from the weekend rush. And while more attention can mean more upselling, it can also mean better deals.

When to avoid buying a used car in the UK

The worst times to buy a used car in the UK are when demand is spiking. At these times of year, buyers have less wiggle room for negotiating.

Demand tends to surge in March and September when registration plates change. The forecourts are busy, so dealers don't need to entice customers with discounts.

The same goes for spring and early summer. Nicer weather usually translates into increased footfall. Demand is especially high for convertibles and SUVs.

At the weekends, people are out in their droves – and car dealerships are no exception. As with annual surges in demand, dealers don't need to offer discounts or bargains.

Shortages in particular models can drive up prices. This is something to check if you have your eye on a particular make and model.

Finally, you should watch for fluctuations in fuel prices. When fuel prices increase, demand rises for fuel-efficient models and hybrid cars. This drives prices up for these kinds of vehicles.

Why buy a used car?

Buying a used car makes your budget stretch further in three key ways:

It reduces the upfront cost
You pay less for insurance
You avoid rapid depreciation (loss of value)

It also helps you afford a better – one you might not be able to afford at full price. Whether you're after a higher trim level, better tech or a luxury brand, buying used gives you a wider range of choice.

How we can help

At Zoomo, we help people across the North East of England get on the road with a high-quality used car. We're a trusted local dealership that specialises in bad credit car finance .

We're an RAC Approved Dealer with the AA Cars Standard. Our friendly and professional team will talk you through the process and have you on the road in no time.

So, if you're looking for a new set of wheels, browse our fleet of used cars for sale in Newcastle today. You can always expect a great deal – no matter the time of year.

What credit score do you actually need for car finance?

Fri, 21 Aug 2026 08:03:18 GMT

When you apply for car finance, your credit score matters. But what score do you need to be approved?

Many people know that credit scores exist – and most of those people know they affect credit applications.

However, the precise workings of credit scores are often shrouded in mystery. As a result, it's easy to feel like you're playing guessing games when applying for a loan or car finance.

So, what actually is a good credit score? And what credit score do you need to be approved for car finance?

You have credit scores, not a single credit score

The first thing to clear up is the idea that there's just one credit score.

In fact, the three main credit reference agencies (CRAs) each have their own calculations to figure out your score based on your financial past.

This figure is then consulted by lenders before they put money into your bank account.

This means two things:

You need to check several credit scores, not just one.
There isn't a minimum credit score for car finance.

Your score is important, but it's not the be-all and end-all. What matters most is your overall credit profile. This is calculated from your ability to meet payments, among other things.

A rough guide to credit scores: what are my chances?

If you have an excellent credit history, your chance of getting car finance is high – and you'll probably be offered the lowest interest rates.

However, as your credit history decreases in quality, your chances of getting car finance decrease and interest payments rise.

Don't worry, though. Even people with poor credit can get car finance. They just need to go through specialist lenders like us.

In fact, you can even get car finance with no credit history. All you have to do is show that you have a stable income and can make the repayments.

What else do lenders look for?

Lenders are never interested in your credit score alone. If that were the case, only people who had never missed a payment would be able to access a loan. That's simply not true.

As well as consulting your credit score, lenders will focus on:

Your income
Your employment stability
Your ability to afford the monthly repayments

They will also consider your existing debts and financial commitments, as well as missed payments, defaults and county court judgments (CCJs).

Being registered on the electoral roll will help, as will a bigger deposit. Both make you seem less risky to lenders.

In short, it's not always simple. Someone with a fair credit score, steady salary and large deposit might be approved, while someone with an excellent score and no stable income might not.

Can I get car finance with bad credit?

Yes. There's no reason why you shouldn't be able to finance a car with bad credit.

You'll just need to work with a specialist lender, broker or dealership that caters to people with poor credit histories.

How can I improve my credit score?

If you want to improve your credit score, there are a number of steps you can take.

1. Get on the electoral roll

First, you can register to vote at your current address. Being on the electoral roll can boost your credit score and helps show you are who you say you are.

2. Pay on time

Secondly, you can make sure you consistently make payments on time. This isn't always possible for all sorts of reasons. But if it's something you can do, it will help give your credit score a glow-up.

3. Check your credit file for errors

Different lenders check different CRAs, so it's important to review your credit file with all three of the main CRAs:

Equifax
Experian
TransUnion

There may be errors or links to old accounts – an unused joint account, say. Getting these errors sorted can do wonders for your credit score.

4. Watch your credit card usage

If you have a credit card, try to use less than 30% of your available credit limit. Using more or maxing it out suggests you're struggling to manage your finances and makes you an unappealing proposition to lenders.

5. Don't apply for credit too often

Finally, you should space out your credit applications. Making multiple applications in a short period leaves hard searches on your file.

These hard searches are visible to lenders. If they see too many, it can make you look financially unstable and put them off.

Instead, spread out your applications and use soft-search eligibility checkers before applying.

What else can I do to improve my chances of getting car finance?

When you go to a lender for car finance, they're most interested in whether you can afford the repayments. But there are a few other things you can do to improve your chances of approval.

Use a guarantor – a close friend or family member with good credit who's willing to cover payments if you can't.
Go for a cheaper car. This will lower your loan and make monthly payments more manageable.
Put down a higher deposit. The bigger the deposit, the less risk the lender has to take. This can help you secure better rates.

Does applying for car finance affect my credit score?

Checking your eligibility for car finance does not affect your credit score. Formally applying does affect your score. The impact, however, is small and temporary.

When you formally apply for car finance, the lender carries out a "hard search" on your credit file. This leaves a mark and knocks a few points off your score.

This is why it's important to avoid multiple hard searches. You can do this by shopping around before applying or going through a car finance broker that will carry out soft searches for you.

Can I get car finance with Zoomo?

If you're in Newcastle and want finance for a car , Zoomo can help.

We can't guarantee you'll be approved. But we specialise in bad credit and work with a wide panel of lenders who look at current affordability more than your financial past. If you can make the payments, we'll lend you the money – no matter how high or low your credit score.

Why not try applying for finance online ? It only takes a minute, and because we use soft-search technology, it won't affect your credit score until you formally apply.

Car finance for self-employed people: how to get approved

Tue, 18 Aug 2026 22:03:27 GMT

Are you self-employed and looking into applying for car finance? Learn your options and how to get approved.

The world of car finance can seem cryptic and secretive. But at the end of the day, lenders only really want one thing. They want to know you'll pay their money back on time.

This goes for all applicants, whether they're employed, self-employed or on benefits. To get approved, you need to demonstrate financial reliability.

For self-employed people, this means gathering documents to prove you have a stable income. But that's just the start.

There are other steps you can take to increase your chances of approval. Some of these steps are specific to self-employed people, while others apply to everyone.

Here at Zoomo, we specialise in bad-credit car finance applications. We pride ourselves on getting people on the road regardless of their financial history.

So, what should you do to get approved for self-employed car finance ? Let's take a closer look.

The importance of paperwork

The most important thing you need to do as a self-employed person applying for car finance is to show that you have a steady source of income. The way to demonstrate this is by assembling relevant paperwork.

Your folder of paperwork (digital or manual) should include:

Your two most recent HMRC tax calculations
Your two most recent HMRC tax year overviews
Three to six months of personal and business bank statements and invoices

Alongside these key documents, you may be asked for proof of identity, proof of address and your accounts.

Most lenders require you to have been trading as self-employed for at least one year. Two years is often the minimum trading history for the best rates.

What can I do to increase my chances of getting car finance approval?

As we say, the most important thing for you to do when applying for car finance as a self-employed person is getting your paperwork in order. Nevertheless, there are further steps you can take to boost your chances of approval.

1. Get your accounts in order

Make sure your accounts and tax returns are up to date. These documents act as evidence of your income and your ability to pay back the loan.

Relevant documents include:

SA302 tax calculations from HMRC
Self-assessment returns
Business bank statements

2. Work on your credit score

Remember that lenders are most interested in your creditworthiness – more so than whether you're employed or self-employed, in fact.

This means you should take steps to improve your credit score where possible. The key ways to do this are to pay all your bills on time and reduce outstanding credit card balances. You should also ensure you're registered on the electoral roll as this is viewed favourably by credit agencies.

3. Offer a larger deposit

To improve your chances, you may want to consider increasing your deposit. A larger deposit reduces the overall amount you're borrowing, which lowers the lender's risk.

As well as increasing your chances of approval, this can result in a lower interest rate.

4. Stay money-healthy

Fourthly, you should make a concerted attempt to make your bank statements look healthy.

In practice, this means staying out of your overdraft and making all payments on time three to six months before you apply for car finance. Remember: you're sharing your bank statements as proof of your creditworthiness, so they need to look as creditworthy as possible.

5. Pay off debts if you can

Lenders look at your existing debt commitments: credit cards, personal loans, buy-now-pay-later arrangements and existing vehicle finance deals.

Paying down debt, if possible, can significantly help your chances of getting approval for your car finance application.

6. Be realistic about what you can afford

You might be surprised to learn that one of the most common reasons for rejection is applying for finance for a vehicle that's too expensive.

This means you should apply for a vehicle that sits comfortably within your annual profits. Otherwise, lenders may look at your application and suspect you're overstretching your financial capabilities.

7. Don't make too many hard credit searches

The next thing to consider is the frequency of your credit applications. If you make multiple hard-search applications in a short period, lenders will see you as risky.

There are three ways to avoid this:

Space out your applications.
Use soft-search eligibility checkers to avoid hard searches. Hard searches appear on your credit file, so are visible to lenders.
Get a car finance broker to match you with lenders. This means the broker makes invisible soft searches on your behalf.

Working with a car finance broker has another benefit. Some lenders are especially happy to work with self-employed applicants. A good car finance broker could put you in touch with lenders who will be more favourable to your application.

Frequently asked questions

Zoomo is a leading provider of bad-credit car finance in Newcastle upon Tyne . If you're looking for a new set of wheels but are unsure whether you'll be approved for finance, we can help. Apply online using our soft-search eligibility checker and you'll find out today if you're likely to be approved.

How to read your credit report (and what lenders actually see)

Tue, 18 Aug 2026 21:50:17 GMT

What does your credit report mean – and what do lenders see when they look at it? Find out in our guide.

When you apply for credit, lenders look at your credit report to make a decision about your financial reliability. This is based on the financial history recorded in the credit report.

Before you apply, it's worth checking your credit report yourself to make sure it's accurate and to get a sense of your eligibility. Checking is free and won't harm your credit score.

Some aspects of a credit report are easy to understand. But other parts may take a little longer to decode.

Your main aims when checking your credit report will be to check your personal details, review your credit accounts and look for any errors.

If you see a mistake, you can raise a dispute with the lender or credit reference agency (CRA). If the mistake is rectified, it could increase your chances of being accepted for credit.

When lenders run a hard credit check, they look at the last six years of your credit report. This lets them assess your creditworthiness. They base this on all the information in the report.

Understanding your credit report

Let's break down a standard credit report, section by section.

1. Personal information

The first section of your credit report is personal information. It will include your:

Full name
Date of birth
National Insurance number
Current address
Past addresses

It's worth checking this section for errors. That's because incorrect information can lead to mix-ups or suggest that someone has committed fraud by changing your address.

2. Credit accounts

The next section covers your credit accounts – all your credit cards, mortgages, personal loans, bank overdrafts and other finance agreements over the last six years.

Status codes

Lenders use status codes to report your monthly payments. "0" or "OK" means the payments are on time. Codes like 30, 60 or 90 – or, in some systems, 1 to 5 – represent how many days late a payment is.

Credit utilisation

Lenders take note of credit utilisation – how much credit you've accessed. This is because a high level of credit suggests financial unreliability, which could harm your application.

You can work out your credit utilisation ratio by dividing your total outstanding balances by your total credit limits.

If your credit utilisation rate is high, see if you can reduce it in the months leading up to your credit application. This will boost your chances of being approved as lenders see a high utilisation rate as problematic.

3. Public records and collections

The next section covers public records and collections. These are the kinds of financial difficulties that end up on the public record. They might include:

County court judgments (CCJs)
Bankruptcy
Individual voluntary arrangements (IVAs) following bankruptcy

If these records are inaccurate or don't correspond to your financial history, it's important to raise a dispute. Otherwise, they could seriously impact your chances of getting credit.

4. Credit searches

Next up are credit searches. These are split into two categories: hard searches and soft searches.

Hard searches

Hard searches are marked on your report when you apply for a loan. These are visible to lenders.

If you have too many hard inquiries in a short period, lenders may give you the cold shoulder. This is because they assume you're in financial need and won't be able to repay them.

Soft searches

Soft searches, by contrast, are background checks. These take place when you check your own credit, when your file is checked for pre-approved offers or when you use an eligibility checker.

These are visible to you but not visible to lenders. They don't affect your credit score.

5. Financial associations and the electoral roll

The final section covers financial associations and the electoral roll.

Financial associations

Financial associations are links to a partner or someone else you've borrowed with – typically through a joint account or mortgage. If your partner misses a payment, it will go on both your credit files.

Electoral roll

Your credit report will also record whether you're registered on the electoral roll. Being registered validates your address and strengthens your credit profile.

My credit report is inaccurate. What should I do?

If you spot an error in your credit report, you should immediately raise a dispute. This can be with the CRA (Equifax, Experian or TransUnion) or the lender.

When reading your report, look out for errors relating to:

Unfamiliar accounts
Late payments you actually made on time
Outdated or incorrect personal info

What do lenders see when they read your credit report?

There's a lot of overlap between what you see and what your lender sees. This includes:

Personal details
Whether you're registered on the electoral roll
Credit accounts, including balances, credit limits and utilisation
Your repayment history
Public records
Hard credit searches
Financial associations

They'll also see fraud markers. These are warnings recorded by Cifas, the UK's fraud prevention service. These warnings are shared on the National Fraud Database to alert lenders and insurers to financial crime and identity theft.

What do lenders not see?

You may feel that there's too much information available to lenders. There are, however, several pieces of information that a lender doesn't see.

They don't see your salary, employment history or your day-to-day transactions. They also can't see any soft searches you've made, whether through checking your own credit score or via an eligibility checker.

What are lenders looking for in your credit report?

The main thing lenders look for when consulting your credit report is your creditworthiness. In other words, how likely are you to make the repayments they require?

They'll give this information to a CRA, which will put the data into its algorithm. This will spit out a credit score which the lender will then use to make a decision.

It's important to note, however, that loans aren't made based on your credit score alone. If you have a high credit score but no stable income, for instance, you're less likely to get a loan than if you have a poor credit score and a stable income.

How we can help

At Zoomo, we specialise in securing car finance for people with poor credit in Newcastle upon Tyne .

By working with a panel of specialist lenders, we can boast a whopping 96% acceptance rate. That's because these lenders look at how much you can afford right now – not just your credit history.

So, if you need a new set of wheels, why not apply for finance online ? It only takes a minute and won't affect your credit score.

What happens if you miss a car finance payment?

Mon, 17 Aug 2026 14:57:03 GMT

It's not always easy to keep up with car finance repayments. Get a clear-eyed look at what could happen if you miss a payment.

Car finance comes with benefits that few drivers would deny. You pay less upfront and then make predictable payments until the term is over. You can buy a car you might not be able to afford upfront. And as you make the repayments, you're breathing life into your credit score.

These benefits, however, come with strings attached. After all, a car finance agreement is more than just an agreement – it's a legally binding contract.

This means that keeping to your car finance payments matters – and that missing a payment can lead to a more serious and expensive problem.

The good news, however, is that a single missed payment doesn't spell disaster.

In this article, we take a closer look at what happens if you miss a car finance payment.

What happens if my payment is a few days late?

If your payment is a few days late, most lenders will contact you and charge you a late payment fee. It won't, however, go on your credit file until it's a month overdue.

What happens if you miss a single payment?

If you miss a single payment, the lender will typically charge a late payment fee and ask you to make the payment. If you're experiencing financial difficulties, they may offer payment arrangements to make the payment more manageable.

What happens if you miss multiple payments?

It's when you miss multiple payments that the issue becomes serious. Additional fees and interest are likely to be added and the missed payments will be put on your credit file. This can negatively affect your chances of getting credit in future.

After two or three months, the lender is likely to issue a default notice. This is a formal warning letter stating that you've persistently missed payments and broken the terms of your agreement.

A default notice is your final chance to catch up on missed payments before the lender takes legal action.

Can the lender take the car back if I miss a car finance payment?

This depends on the type of finance agreement and how much you've already paid back.

Hire purchase (HP) and personal contract purchase (PCP) agreements

With these agreements, the lender may be able to repossess the car if you've paid less than a third of the total payable amount.

If you've paid more than a third, however, the lender will typically need a court order before repossessing the car.

Personal loans

If you've missed a payment or payments on a personal loan, you own the car outright and the loan isn't secured against the car. In other words, the car can't be seized as collateral if you fail to pay the money back.

That said, repossession could occur if the lender gets a court judgment against you and you still don't pay the money back.

I can't afford my car finance payments: what should I do?

If you can't afford your car finance payments, you should notify your lender as soon as possible. Ignoring the problem will only make the situation worse. It will also increase the risk of serious consequences, such as a default, repossession and a poor credit score.

Generally speaking, lenders are far more willing to help you if you contact them sooner rather than later.

They may offer you alternative payment arrangements to help you deal with your financial situation. This could be:

A temporary payment agreement
Smaller payments over a longer period
Reduced payments for an agreed time
Payment deferral (allowing more time to make the payment)

If you're experiencing difficulties with debt, you could approach a charity for advice. Prominent debt charities in the UK include StepChange , National Debtline and Citizens Advice .

If you've borrowed money for the car as part of an HP or PCP arrangement, you could also consider what's known as voluntary termination.

What is voluntary termination and how does it work?

If you've taken out an HP or PCP arrangement and can't pay the money back, you may have the right to end the agreement and return the car.

This can only happen, however, on two conditions:

You must have paid back half of the total payable amount (including fees and interest).
The car needs to be in a reasonable condition.

Another possibility is to sell the car – although this, too, depends on a couple of factors.

Can I sell my car if I can't make my car finance payments?

It may be possible to get a settlement figure for the car from the lender. The car can then be sold and the money used to clear some or all of the finance.

This depends, however, on the balance of your payments and the value of the car.

It's important to note that selling the car should always be done in line with the lender's requirements. Again, discussing your options with the lender sooner rather than later is the best thing you can do to minimise the chance of more serious consequences.

What happens if I miss a personal loan payment?

Personal loan payments differ from car finance agreements because the lender in a personal loan agreement typically doesn't have a direct claim over the car. They can only claim the money that needs to be paid back.

If you miss a payment, the lender will usually contact you to ask for payment. They may charge a late payment fee. If you don't pay, they may report the payment to credit reference agencies. This will negatively affect your credit score.

If you continue to miss payments, the lender will issue a default notice demanding repayment of the missed payments. As a last resort, they may sell or pass on the debt to a debt collection agency or take court action to recover the money.

Zoomo is a specialist bad-credit car finance broker in Newcastle , UK. We work with a panel of trusted lenders to secure car finance agreements, no matter your credit history. Why not apply for finance online today ? It only takes a few minutes.

Is PCP car finance a good idea? The honest answer

Fri, 14 Aug 2026 06:22:45 GMT

PCP is the most common way to get a car on finance. But is it a good idea? Get the honest answer in our guide.

There are different ways to rent a car on finance. The three main ways are:

Get a personal loan
Get a hire purchase (HP) arrangement
Get a personal contract purchase (PCP) agreement

In this article, we look at PCP in particular. What does it involve – and, most importantly, is it worth it?

What is PCP car finance?

PCP is a flexible car financing plan. You pay a deposit followed by fixed monthly payments, typically for between two and four years.

At the end of the agreement, you can pay a large final "balloon" payment and keep the car. Alternatively – and more commonly – you can hand back the car to the dealer.

It's the most commonly used kind of car finance agreement – but is it worth it? The answer, as so often, depends on you, your requirements and your financial situation.

Is PCP honestly worth it?

If you want to prioritise lower monthly payments and want the freedom to change your car at the end of the agreement, PCP is the option for you. If, however, your goal is to own the car outright, it can be more expensive in the long run.

Let's look at some of the situations where PCP makes sense.

If you want lower monthly outgoings

Do you want a new car on a budget? Then PCP is a great option.

PCP agreements are set up so that you're paying for the car's depreciation rather than its full value. This means your monthly payments are lower than HP agreements, where you're paying off the total value of the vehicle.

If you want a new car at the end of the contract term

You might be somebody who wants to change cars regularly. Perhaps, for instance, you want to enjoy a range of cars that you wouldn't be able to afford outright.

At the end of a PCP arrangement, you can hand back the keys and start a new agreement – and you don't have to go to the trouble of selling the car on.

If you want to avoid losing out to depreciation

PCP agreements serve as a defence against depreciation. The dealer will guarantee a minimum guaranteed future value (GFV). If the car's market value drops below the GFV, you can hand it back to the dealer without dealing with the financial hit.

When should you AVOID a PCP agreement?

PCP car finance has many perks. However, it's not for everyone.

If you…

Want to own the car outright
Want to keep it for a long time
Don't want to pay a balloon payment to keep the car
Don't mind higher monthly payments

…it's often more sensible to get a car on HP than PCP.

What's the difference between PCP and HP?

Both PCP and HP are common ways to finance a car – and they both involve paying a deposit followed by monthly instalments.

Another similarity is that both PCP and HP finance agreements are available to people with bad credit histories. In both cases, however, you'll probably need to work with a specialist bad credit car finance broker , as many mainstream lenders will consider you too big a risk to lend to.

They differ, however, in monthly costs, ownership, end-of-contract flexibility and the reasons people go for each model.

With HP, you always own the car at the end

An HP agreement enables you to spread the cost of the car over a longer period. You pay an initial deposit followed by fixed monthly instalments (with interest).

The finance company owns the vehicle throughout all of these monthly payments. When you've made the last payment, however, you own the car outright.

With PCP, you can choose whether to purchase the car

With PCP, you can own the car outright at the end of the agreement – but to do so requires paying a large final balloon payment.

HP has higher monthly costs than PCP

Because you're spreading the full cost of the car over your monthly repayments, you'll pay more per month with HP than PCP.

On the upside, you'll know you're getting a car at the end of it all. Plus, you won't have to fork out for a balloon payment to cover the cost.

Which is right for me?

The different car finance models lead to different outcomes.

Put simply, you should:

Consider PCP if: you want lower monthly payments and the flexibility to change your car at the end of the deal.
Consider HP if: your main goal is to own the car outright and you want to hold onto it for a long time.

Can I get PCP with bad credit?

Having a bad credit score can make it harder to borrow from mainstream lenders.

There are, however, specialist bad-credit car finance brokers (like us) that work with lenders to secure car finance no matter your financial history.

They do this by working with a wide panel of lenders that look at your financial circumstances as a whole. They don't just look at the black marks on your credit file.

A bad credit car finance broker will carry out eligibility checks for you. These are soft searches, meaning credit checks that don't show up on your credit report.

This is more in your interest than directly applying for credit. Doing this counts as a hard search – it's recorded on your credit file and may make you less appealing to lenders in the future.

How we can help

At Zoomo, we work as a bad-credit car finance broker, helping people get the car they want or need, regardless of their financial history.

PCP is one of our main financing options (though we also offer HP). We match you with a wide panel of lenders known for approving people with bad credit, past defaults and CCJs. These lenders look at your current affordability, not just your credit history.

The process is simple. Fill out a quick application form on our website and we'll search our panel of lenders for an appropriate match.

The decision will reach you quickly – often in less than an hour. And because we carry out a soft search for you, your credit score won't be affected.

Once approved, you can choose from hundreds of used cars, hatchbacks and SUVs. Paperwork completed (often with £0 deposit options), you can come to the dealership and drive away with your new vehicle. Happy driving!

Can you get car finance with defaults on your credit file?

Tue, 11 Aug 2026 20:41:59 GMT

Are you looking for a car finance deal with defaults on your credit file? Here's what you need to know.

Having defaults on your credit file doesn't mean you're locked out of getting car finance. It does mean, however, that you may have to take some steps to improve your chances. That's because mainstream lenders are likely to see you as a risky borrower.

Whether you apply directly (a hard search) or go through an eligibility checker (a soft search), lenders will naturally look at any defaults.

They'll consider:

How many defaults you have
How old they are
Whether they've been settled

For some lenders, the mere presence of defaults on your credit file will be enough to decide against lending you money. But specialist bad-credit car finance brokers will place more weight on your current income and affordability, as well as your credit history since the defaults.

That means an applicant with a recent default but a stable income may get approved. Meanwhile, someone with a clean bill of credit health but no current stable income may be disapproved.

It's also worth noting that the older the defaults are, the less likely they are to matter.

Remember: a car finance lender's priority is to get their money back. So, you may need to pay a higher interest rate or put down a larger deposit if you apply for finance with defaults on your file.

You can also take steps to improve your chances. Here are four ways to do it.

How to improve your chances of getting car finance with defaults on your credit file

1. Put down a larger deposit

Save for a larger deposit, if possible. A 10% to 20% deposit, for instance, will reassure the lender that you're not such a risky borrower, despite the defaults on your credit file.

2. Get on the electoral roll

A simpler – and cheaper – way to improve your chances is to make sure you're on the electoral roll. This is used by lenders to validate your address and is another reassurance that you're a safe pair of hands to lend to.

3. Don't miss payments

In the months leading up to a credit application, you should do all you can to keep up with all your credit card payments. If you use credit regularly, lenders are likely to think you're struggling for cash.

4. Wait for the right time to apply

Finally, it's worth applying only when there's a good chance of approval. This is because multiple applications in a short period are a red flag to lenders.

The best way to know your chances is to go through a car finance broker that uses soft-search technology, which doesn't affect your credit score. If you have defaults on your credit file, this will be a specialist bad-credit car finance broker.

What are the main kinds of car finance?

There are four main kinds of car finance:

Hire purchase
Personal contract purchase
A personal loan
Personal contract hire

Hire purchase (HP)

Hire purchase involves paying a deposit, typically around 10% of the overall amount, followed by fixed monthly payments.

When the final payment has been made, you own the car. This makes it a popular choice for drivers who want to own the car and make predictable payments.

Personal contract purchase (PCP)

Personal contract purchase begins the same as HP with a deposit and fixed monthly payments.

The main difference is that you have a choice at the end of the agreement. You can either return the car or pay a large final balloon payment to own it.

The other difference is that PCP arrangements usually have cheaper monthly payments than HP, along with mileage limits and charges for excessive wear and tear.

Personal loan

A personal loan is where you borrow from a bank rather than a specialised car finance lender. In this scenario, you own the car from day one, and you repay the loan regardless of what happens to the car.

Personal contract hire (PCH)

Finally, there's PCH, more commonly known as "leasing". This is where you rent the car for a fixed period (typically two to four years). At the end of the agreement, you return the car. Simple.

Leasing works best for drivers who are looking for a newer car and don't mind the fact they won't end up owning it.

Why work with a bad-credit car finance broker?

If you have defaults on your credit file, working with a bad-credit car finance broker can improve your chances of getting approved for finance. Here's how.

1. You have a better chance of success

Perhaps the biggest benefit of working with a bad-credit car finance broker is having access to specialist lenders. These hand-picked lenders are more likely to look at your current affordability than focus on your defaults.

This maximises your chances of success and stops you wasting time applying for credit from mainstream lenders with strict credit requirements.

2. They do the research for you

As well as saving you time by avoiding mainstream lenders, using a bad-credit broker also saves you time by comparing available options for you. For many, this is a better option than spending time researching multiple car finance deals.

3. Checking eligibility won't affect your credit score

Most bad-credit brokers use soft-search eligibility checkers. That means the search doesn't make a mark on your credit history. In fact, your credit score won't be affected until you formally apply for finance.

4. They're flexible

Depending on your circumstances, brokers may offer different products – for instance, HP and PCP. This flexibility can help you get the right finance agreement for your specific requirements.

5. You might end up paying less overall

Bad credit tends to mean higher interest rates. On the plus side, working with a specialist bad-credit broker increases your chances of getting a competitive deal with a lower interest rate.

6. It can help improve your credit score over time

Finally, working with a specialist bad-credit car finance broker gives you an opportunity to rebuild your credit.

With the agreement in place, you're now in a position to make your repayments on time and improve your overall credit score.

Zoomo specialises in arranging bad credit car finance in Newcastle , UK. If you're saving for a used car but are worried about defaults on your credit file, why not apply online today ? With our 96% acceptance rate, this could be your chance to get the wheels you deserve.

Car finance on benefits: what you need to know before applying

Sun, 09 Aug 2026 20:36:06 GMT

With car finance, lenders want to know you can pay – not where the money came from. Explore your options for getting car finance on benefits.

People on benefits in the UK can buy cars on finance. Most of the time, however, you'll need to work with specialist lenders.

What lenders want to know is that you'll make all your repayments on time and in full. This means having a steady income is more important than where the steady income comes from.

Long-term benefits like the Personal Independence Payment (PIP), Disability Living Allowance (DLA) and Universal Credit (UC) function as a steady and verifiable income.

You'll also need to show that you have enough money left over to make the payments once you've paid your bills. This makes it harder to get car finance if you only get UC.

Before we take a closer look at applying for car finance on benefits , a quick note about terminology. In this guide, "benefits" refers to state welfare benefits for unemployment, illness and retirement rather than workplace benefits.

Are you eligible?

Your eligibility depends on your ability to pay. This means that long-term disability benefits are the most readily accepted.

It's possible to get car finance when you're only on UC, but you'll need to demonstrate you can make the payments.

Mainstream lenders will put a lot of weight on your credit score. Specialist bad credit lenders and brokers, however, will look at your overall affordability more than your credit score.

This means you can get car finance if you're on benefits and have a poor credit score or past county court judgments (CCJs). You just need to work with the right lender or broker.

Things to consider

If you're on benefits, you may doubt your chances of getting a car on finance. However, it's important to remember that, for lenders, your income matters more than where it comes from.

Long-term benefits show steady income, but you'll need to show that you can cover the monthly payments.

Credit history matters if you're applying to a mainstream lender. But if your credit history is poor, you can apply to a specialist lender who will look at your overall affordability.

Bear in mind that a car costs more than its monthly payments . You'll need to pay for insurance, fuel, repairs and more. Factor this in when applying for car finance.

If you can, avoid high-interest deals . Some specialist lenders will offer car finance to people on benefits but charge sky-high APRs. Make sure you compare offers before signing anything.

What kind of car finance can I get on benefits?

There are three main kinds of car finance: a personal loan, hire purchase (HP) and personal contract purchase (PCP).

In most cases, lenders will offer you a hire purchase scheme if you're on benefits. This is where you pay your deposit and then spread the remaining balance (with interest) over fixed monthly payments.

Once you've made the final payment, you own the car. Until then, the car acts as security for the loan, meaning it can be seized and sold if you don't make your payments.

If you're on benefits, PCP agreements are possible but harder to get. They're similar to HP agreements, but with a couple of important differences:

The monthly payments are cheaper.
You have the option of making a large final balloon payment to own the car. If you don't want the car, you return it.

Can I get a car on the Motability Scheme?

The Motability Scheme allows individuals with disabilities and their families to lease a new car, a wheelchair-accessible vehicle (WAV), a scooter or a powered wheelchair.

The scheme works by allowing people on these benefits to exchange their mobility benefits to cover the cost of the car lease.

If you receive the mobility component of certain disability benefits, you can get a car on the Motability Scheme. These benefits are:

The enhanced rate mobility component of PIP
The higher rate mobility component of DLA
The enhanced rate mobility component of the Adult Disability Payment (ADP) in Scotland
The higher rate mobility component of the Child Disability Payment (CDP) in Scotland
The Armed Forces Independence Payment (AFIP)
The War Pensioners' Mobility Supplement (WPMS)

Applicants to the scheme must have at least 12 months remaining on their allowance.

If you qualify, the car comes with:

Insurance coverage for up to three named drivers
Routine servicing and MOT coverage
Full roadside assistance and breakdown cover
Replacement tyres and windscreens

Many cars available on the scheme can also be fitted with custom driving or accessibility adaptations free of charge. These include driving aids, hoists and hand controls.

What do lenders want?

When applying for car finance – whether on benefits or not – it's worth thinking about what lenders want from you.

At the end of the day, they want their money paid back with interest. This means they're likely to prioritise low-risk borrowers who can demonstrate a steady income with enough left over once bills have been paid.

Mainstream lenders will often look at your credit history to decide how risky you are as a borrower. But specialist lenders and brokers will prioritise current affordability rather than your financial past.

This means steady, long-term benefits are likely to be seen as reliable and low-risk by specialist lenders. If you're only on UC, however, you may not have the leftover income to make the payments and your application may be rejected.

How we can help

Here at Zoomo, we provide car finance deals to people in the Newcastle area, regardless of their credit score. Instead, we focus on current affordability.

So, if you're on benefits and can make the payments, why not apply for finance online ? It only takes a few moments, and it uses soft-search technology, so it won't affect your credit score.

Are electric cars really cheaper to run? We crunch the numbers

Sat, 08 Aug 2026 22:08:09 GMT

Electric cars are cheaper to run than petrol or diesel cars. Or are they? Let's take a close look at the maths.

Will the 2020s be remembered as the age of electric vehicles?

At the time of writing, there are around two million zero-emission electric cars on the UK's roads. And as they become more affordable and more familiar, that number is sure to go up.

It's not hard to see why electric cars are attractive to those who can afford them.

They produce zero emissions, making them the most environmentally friendly type of car on the roads. They're also a pleasure to drive, with a quiet, smooth performance and instant acceleration.

And if you ask pretty much anyone, they'll tell you that electric cars are cheaper to run and maintain than their petrol and diesel counterparts. This is rapidly becoming a truism along the lines of "water is wet".

But is it always true? Are there circumstances when it's actually cheaper to run and maintain a less environmentally friendly car?

Well, the simple answer is that for most drivers, an electric vehicle is cheaper to run on a day-to-day basis. These savings, however, depend on factors like home or public charging, insurance costs and driving habits.

And there's no getting around the fact that electric cars are more expensive upfront than other cars.

Before we take a closer look at the relative savings you can make, let's explore the running costs you can expect to pay when you buy an electric car.

What are the running costs of electric cars?

Fuel costs

Petrol and diesel car drivers pay for fuel. Electric car drivers pay for charging.

Charging at home is significantly cheaper than filling up your tank at a petrol station. This is partly because electric motors are much more efficient than petrol engines.

Relying on public chargers, however, can be as expensive per mile as petrol. That's why many drivers choose to mix home charging and public charging. In this situation, electric cars are still cheaper to power than petrol cars.

Maintenance costs

Electric cars have fewer moving parts to monitor and repair. They don't have spark plugs or exhaust systems, they don't need oil changes and regenerative braking means there's less wear on the brakes.

This means servicing an electric car is typically around 20% to 30% cheaper than servicing a petrol vehicle.

Road tax

In this head-to-head, it's a draw. Standard road tax rates for electric cars are the same as low-emission petrol cars. However, electric cars get cheaper rates in the first year of ownership.

Insurance

This is where petrol cars have the edge on electric cars. Electric cars require specialist parts and battery packs, making them more expensive to insure.

In what ways are electric cars more expensive?

The main area where electric cars are more expensive is the upfront cost – though this isn't always the case when compared with high-end petrol cars. As electric battery costs fall, however, so might electric car costs.

Frequently using public fast chargers can significantly reduce the overall savings you make by owning an electric car. You need to charge at home some or all of the time to spend less money than you would on petrol.

Electric car batteries last a long time – often 10 to 20 years. However, it's expensive to replace one outside of the warranty.

And as mentioned, some electric cars are more expensive to insure. This is because repairs cost more than on petrol cars.

The precise savings you make will also depend on the kind of driver you are.

If you charge mostly at home, drive a lot and keep the car for several years, electric cars mostly work out as cheaper than petrol cars.

If, however, you don't drive much and use public fast charging, the savings can work out as much smaller. In some cases, a petrol car might be more cost-effective.

How can you minimise running costs on an electric car?

The number one way to minimise an electric car's running cost is to install a home charger. The costs grow even smaller if you get an off-peak electricity tariff, as many providers offer cheaper rates in the early morning.

You can also make savings by taking advantage of salary sacrifice schemes. This employee benefit involves giving up a portion of your pre-tax salary in exchange for an electric car. Because the payment is made before it's taxed, you make significant savings.

Can I get an electric car on finance?

Yes, it's perfectly possible to get an electric car on finance. The process is very similar to getting a petrol or diesel car on finance. You pay a deposit and then spread the cost of the car into monthly payments.

There are three main types of car finance: personal contract purchase (PCP), hire purchase (HP) and personal contract hire. PCP and HP are by far the most popular options.

PCP finance

PCP is when you pay an initial deposit followed by fixed monthly payments. At the end of the agreement, you can either hand the car back or pay a large balloon payment to own the car.

PCP also protects you from depreciation (the car losing value over time). This is especially useful for electric cars, which tend to depreciate faster than petrol cars.

HP finance

HP starts in the same way as PCP but ends differently. Once you've made all the repayments, you own the vehicle outright.

Personal contract hire

Personal contract hire is similar to leasing. It means you pay fixed monthly payments to use a car. At no point do you own the car and you have to hand it back at the end of your contract.

How much does an electric car cost?

In the UK, the average price of a new electric car is around £41,000. However, entry-level models start from as little as £13,000. Luxury electric SUVs can cost more than £100,000.

Zoomo is the largest independent car finance specialist in the north of England. Are you looking for a used electric car in Newcastle ? Complete our quick online finance application today – most customers get a decision within just one hour.

What does a car finance broker actually do? (And why it matters)

Fri, 07 Aug 2026 08:07:53 GMT

So, you're looking for car finance. Find out how a car finance broker can help get the best deal for you – even with a bad credit score.

When you apply for car finance, you've got options. You can apply directly for credit to banks and car dealerships, or you can go through a car finance broker.

A car finance broker is a go-between. It acts as an intermediary between you, the borrower, and a wide panel of lenders. This helps you secure the best finance deal for your specific circumstances.

There are two main reasons why people work with car finance brokers rather than interacting directly with lenders. The first relates to the number of options you have. The second relates to your credit report.

If you go directly to a lender, you go directly to a single lender. A car finance broker, by contrast, puts you in touch with a wider range of possible lenders. This helps you weigh up your options and choose the best deal for you – all without lifting a finger or spending a penny.

And when a car finance broker searches for possible lenders, it carries out soft searches, not hard searches. This means it doesn't leave a mark on your credit report and is invisible to lenders. Applying directly to a bank or car dealership, meanwhile, counts as a hard search.

But there's another, equally compelling reason why car finance brokers are worth working with. This is that some, like us, put drivers in touch with lenders that specialise in bad credit.

Mainstream lenders, you see, will usually turn an unfavourable eye to people with patchy credit histories. Here at Zoomo, however, we're committed to providing finance to people regardless of their financial past.

What are a car finance broker's responsibilities?

Car dealerships will often work with just one lender. A car finance broker, by contrast, widens the net and has access to many lenders.

This is useful for a couple of reasons:

It helps put you in touch with lower interest rates (APRs) and more favourable terms.
It can help put you in touch with lenders who specialise in bad credit or high-value vehicles, depending on your specific requirements.

The car finance broker will handle the applications for you, including paperwork and communication with lenders and dealers. This massively reduces the hassle involved in applying for car finance.

Some car finance brokers will offer personalised advice, explaining your options to you and guiding you through the process.

The final responsibility of a car finance broker is to carry out soft searches to check your eligibility. This helps you explore your options without leaving any marks on your credit report.

What are the benefits of using a car finance broker?

Why should you use a car finance broker rather than applying for credit directly? Here are five key reasons.

1. Access

Car finance brokers have access to more lenders than you do. This means they can hook you up with the best deal for you and your financial circumstances.

2. Specialisms

Different car finance brokers will have different specialisms. One might specialise in vintage cars, while another specialises in securing car finance for people with bad credit histories. This means they have access to lenders that may not be immediately obvious to you or hard to find.

3. Labour-saving

Are you short on time or energy? A car finance broker can significantly reduce the administrative burden of applying for car finance from a bank or car dealership. It takes care of the application process so you don't have to.

4. Soft searches

Applying for car finance directly from a bank or car dealership is a hard search that's recorded on your credit report. This can make you less eligible for loans in the future.

Working with a car finance broker, by contrast, is recorded as a soft search. This means you can secure car finance with no negative impact on your credit score.

5. Cost

Most car finance brokers, including us, don't charge a direct fee for their services. This means you're getting a great service free of charge.

How do car finance brokers make money?

So, if car finance brokers don't charge you, how do they make their money? The answer is commission.

Their job is to introduce you to the lender. If the lender goes ahead and lends you the money, the car finance broker will be paid commission.

Some, but not many, car finance brokers charge you an admin fee. If this happens, you should be told at the start of the process. At Zoomo, we don't charge our customers anything.

How do you know if a car finance broker is legitimate?

The car finance market is crowded. So, how do you know if a car finance broker is legitimate?

Here are some ways to find out – and some red flags to keep an eye on.

Car finance brokers are regulated by the Financial Conduct Authority (FCA). If you're not sure of a firm's legitimacy, try the FCA Firm Checker tool. This will tell you if the firm has been authorised.

Scammers like to set up clone firms with a real company name but false contact details. It's easy to check if a firm is doing this. Simply compare the phone number and address on the FCA register to those the broker is using.

You should also ask yourself the following questions:

Have they asked for upfront fees?
Are they pressuring me into making a payment soon?
Are they asking for payment by bank transfer or cryptocurrency?
Do they only operate online?
Are their rates too good to be true?

If the answer to any of these questions is "yes", look elsewhere.

Are you looking for bad credit car finance in Newcastle upon Tyne ? At Zoomo, we have a 96% acceptance rate – one of the best in the business. It only takes a few minutes to apply for finance online .

Soft search vs hard search: why it matters for car finance

Thu, 06 Aug 2026 09:47:01 GMT

What are the differences between soft and hard credit searches – and how do they affect your car finance application? Let's find out.

When you go to buy a car on finance, lenders need to find out if you're eligible. This involves checking your credit score.

Your credit score is a three-digit number that tells lenders how likely you are to reliably pay back the money you borrow. In other words, it tells lenders whether you're a safe pair of hands.

There are two different kinds of searches, however, and they have different effects on your credit score.

The crucial difference is between a soft search and a hard search. A soft search doesn't affect your score, whereas a hard search can – especially if it's one of multiple searches in a short time.

So, how can you apply for car finance without affecting your credit score and making it harder for you to borrow money in future? Let's find out.

What are soft and hard searches?

The key difference between a soft credit search and a hard credit search is that soft searches don't affect your credit score and are invisible to lenders. Hard searches (also known as "hard checks"), however, can lower your score and are visible on your credit report.

A soft search is an eligibility check. Its purpose is to explore your options without committing to a credit path.

Hard searches, however, take place when you apply officially for a credit card, mortgage or other kind of finance. The purpose of a hard search is for a lender to assess your credit history and decide whether you're creditworthy.

Soft searches are risk-free. Hard searches, on the other hand, show that you're actively seeking credit. If too many appear on your credit report in quick succession, you appear to be a higher risk to lenders.

Hard searches stay on your credit file for around two years. However, they usually only affect your score for a year.

What impact can credit searches have on my car finance application?

Soft searches have no impact on your credit score. Hard searches can lower your score – especially if you make several in a short space of time.

This is because soft searches are invisible to lenders, whereas hard searches are recorded on your credit file for a couple of years.

Your best bet when looking for car finance is to avoid unnecessary hard searches. Use lenders or car finance brokers that offer soft-search eligibility checkers. These will show if you're likely to be approved without your credit score being affected.

Once you've chosen a deal, it's time to move on to a hard search. If rejected, wait a few months before applying again, as multiple applications in a short space of time can make you appear risky to lenders.

How can a car finance broker help?

A car finance broker can help you avoid hard searches by acting as a go-between. They use the lenders they're connected with to carry out soft searches. This helps assess your eligibility without firing off multiple, potentially damaging hard searches.

The advantages of using a car finance broker aren't limited to avoiding hard searches, however. They can also give you access to a broad panel of lenders. This gives them the edge over car dealers, who tend to work with just one or two finance providers.

Sometimes, people appear risky to lenders. This could be because they have "bad credit" (a poor credit history) or because they're self-employed or have an irregular income. In these instances, a car finance broker can help you access specialist lenders.

Car finance brokers can also help you by providing expert advice on the best types of finance available. The world of car finance is riddled with acronyms (HP, PCP and so on). A jargon-busting broker can be invaluable in helping you understand your options.

Finally, a car finance broker can save you time by handling applications, paperwork and negotiations. This means you don't have to handle multiple applications – applications which, as we've seen, could negatively affect your credit score.

Oh, and car finance brokers typically don't take a fee.

How is my credit score calculated?

Your credit score is calculated using information from your credit report. This information is used by lenders to decide whether you're likely to repay borrowed money in the future.

There are three main credit reference agencies (CRAs) in the UK: Experian, Equifax and TransUnion. These three agencies calculate credit scores in different ways.

All, however, will take into account:

Your payment history
Your credit usage
The length of your credit history
How often you apply for new credit accounts
The range of credit accounts you hold

How can I improve my credit score?

If you have a poor credit score, don't despair. There are steps you can take to improve it before applying for car finance or another kind of finance.

The first step is to make sure you pay on time whenever possible. Missed payments are the number one red mark on your credit score that makes lenders consider you unreliable.

Other steps you can take include using less credit, registering on the electoral roll and spacing out credit applications.

A car finance broker can help with this last point by using eligibility checkers on your behalf. This means you get to learn your eligibility with lenders without carrying out hard searches that can negatively impact your credit score.

How we can help

Here at Zoomo, we help people with bad credit histories secure car finance. We do so with flexible financing options, quick and easy applications and zero-deposit options.

So, if you're looking for bad credit car finance in the North East , why not apply online today ? It only takes a few minutes.

The Newcastle Clean Air Zone: what it means for your next car

Tue, 04 Aug 2026 22:26:39 GMT

The Newcastle Clean Air Zone charges non-compliant drivers. Find out if this will affect your next vehicle purchase.

Over the last few years, cities across the UK have introduced clean air zones. These are areas where the most polluting vehicles are either banned from entering or charged for driving in the zone. The aim is to improve air quality in built-up areas.

The Newcastle and Gateshead Clean Air Zone (CAZ) is one such scheme. It covers most of Newcastle city centre and routes across the Tyne, Swing, High Level and Redheugh bridges.

The CAZ charges older, more polluting taxis, vans, buses, coaches and HGVs. Privately owned cars and motorbikes are exempt.

If you're looking to buy a car for private use, there are no restrictions on what you can buy for use in the Newcastle CAZ. However, there are other incentives for buying a less polluting vehicle.

But what if you're looking to buy a car to use as a taxi or private hire vehicle in the CAZ? In this case, you must be sure it complies with regulations.

What charges apply in the Newcastle CAZ?

The CAZ operates 24 hours a day. Each charge lasts one day, meaning you can drive in and out as much as you like once the fee has been paid.

Non-compliant buses, coaches, HGVs are charged £50 a day. Non-compliant taxis, private hire vehicles, vans and minibuses cost £12.50 a day.

How to know if you need to pay

Before driving your car in the Newcastle CAZ, you can check eligibility on the government's vehicle checker .

If your vehicle is eligible for a fee, you can pay it:

Up to six days in advance
On the day of travel
Up to six days after the day of travel

If you don't pay, you'll be issued a penalty charge notice (PCN) of up to £120.

Payments can be made online via the government's Clean Air Zones Service or over the phone.

Unfortunately, scammers have seen their opportunity to profit from CAZ charges. For this reason, you should be careful not to use unofficial or third-party websites.

These will often charge you more than necessary or keep the money for themselves.

Who is exempt from Newcastle CAZ charges?

If you're a private motorist or motorcyclist, you don't need to worry about paying CAZ charges in Newcastle or Gateshead.

If you're driving your vehicle for business and your business is based within the zone, you may be eligible for exemptions. There are also vehicle upgrade grants available to help you replace a non-compliant vehicle.

I'm a taxi driver: what kind of car can I drive in the Newcastle CAZ?

If you're driving a taxi or private hire vehicle in the CAZ, you need to meet emission standards to avoid paying the daily non-compliance charges.

Fully electric and zero-emission vehicles are fine. Diesel cars are compliant when they're "Euro 6" and petrol cars are compliant when they're "Euro 4".

Most diesel taxis registered from September 2015 are Euro 6 and most petrol taxis registered from 2006 onwards are Euro 4 or better.

If you drive a non-compliant car in the CAZ, you must pay £12.50 a day when driving in the zone.

Five cars a taxi driver can drive in the Newcastle CAZ

Luckily for taxi drivers, there are many taxi-worthy cars that meet the CAZ compliance requirements. Here are five of the best.

1. Toyota Prius (petrol hybrid – most models from 2009 on)

This is a stalwart of the roads with excellent fuel economy and passenger comfort.

It's a common choice for taxi drivers.

2. Toyota Corolla Touring Sports Hybrid (petrol hybrid – all UK models)

This is an economical vehicle with plenty of luggage space.

3. Skoda Octavia (Euro 6 diesel or petrol – diesel models from 2015 on)

The Octavia is comfortable for passengers and provides ample boot space.

4. Kia Niro Hybrid (petrol hybrid – all UK models)

This vehicle provides good fuel economy with a higher driving position that lets you see over traffic.

5. LEVC TX (range-extender electric – all models)

The LEVC TX is a purpose-built electric taxi with wheelchair accessibility. It was designed as a taxi for use in London's ultra low emission zone (ULEZ) but is now driven in other cities.

At the time of writing, all of the vehicles above are compliant with the Newcastle CAZ. However, you should always check with the government website and your local licensing authority's taxi regulations before getting behind the wheel.

I'm a private motorist: what kind of car can I drive?

As a private motorist, you can drive any kind of car in the Newcastle CAZ without paying charges. This includes older diesel cars, older petrol cars, hybrid cars and electric cars.

What are the boundaries of the Newcastle Clean Air Zone?

The Newcastle CAZ includes most of Newcastle City Centre as well as routes over the Tyne, Swing, High Level and Redheugh bridges. For more information, see the official maps .

What other cities in the UK have Clean Air Zones?

Other clean air zones in the UK include London's ultra low emission zone (ULEZ) and class D zones in Birmingham and Bristol city centres. There are class C zones in Bath, Bradford and Sheffield.

Glasgow has a low emission zone (LEZ) where non-compliant vehicles are prohibited but not charged. Oxford has a zero emission zone (ZEZ) in the city centre and Portsmouth has a class B zone.

More LEZs are planned in Scotland. Meanwhile in Greater Manchester, an investment-led plan has been approved to upgrade vehicles and improve infrastructure without charging motorists.

How we can help

If you're a taxi driver in Newcastle or the North East and want to buy a low- or no-emission car on credit, we can help.

At Zoomo, we have a huge stock of used cars for sale in Newcastle . All meet RAC Approved Dealer standards and the AA Cars Standard, so you can have confidence that you're getting a smooth runner. Plus, with flexible finance options, you can spread the cost to suit your budget.

To get started, browse our fleet of used cars today .

Car finance vs personal loan: which actually saves you money?

Tue, 04 Aug 2026 15:22:32 GMT

Is it better to buy a car with a personal loan or car finance? Explore your options in our jargon-free guide.

Borrowing money for a new or used car is a big decision – up there with getting a mortgage, moving house or building a home extension.

Why? Well, the sums involved are often big and involve committing yourself to repayments in a changing economy – and possibly in changing personal circumstances.

It's no surprise, then, that people want to get it right. In practice, this usually means choosing between:

A car finance agreement from a dealer or car finance broker
A personal loan from a bank or online finance provider

The big question: which of these two types of credit is best for you? As so often in the world of finance, there's no one-size-fits-all answer.

Whether you go for car finance or a personal loan depends on a range of factors, including:

The kind of car you want
How important it is that you own the car
Your financial forecast
Your credit score

In this article, we explore car finance and personal loans so you can understand the issues better and make the right decision for you.

So, first of all, what do we mean by "car finance"?

What is car finance?

Car finance involves borrowing money from a car dealership or car finance broker to buy a car. The car can be either new or second-hand.

As with all kinds of loans, interest is added to your repayments. So, if you get loaned £1,000, say, you'll be paying that £1,000 back with extra on top for the lender.

There are three main kinds of car finance agreements:

Hire purchase (HP)
Personal contract purchase (PCP)
Car leasing

HP involves hiring a car, then buying it once you've paid off the loan. PCP is similar, but at the end of the agreement you can choose between buying the car and handing it back.

Car leasing, meanwhile, involves renting the car for an agreed period and paying back a fixed amount each month. At the end of the agreement, the car gets handed back.

How is a bank loan different from car finance?

A car finance agreement involves borrowing money from a car dealer or car finance broker. A bank loan – also known as a "personal loan" – is borrowed from a bank or online finance provider.

As with car finance, a bank loan is split into monthly repayments with interest added. Unlike car finance, a bank loan isn't specifically for a car. It's a personal loan that can be spent on anything for personal use.

With car finance, you're given the car and you pay it back. With a bank loan, money gets put in your account and you buy a car with it.

The amount of money you can borrow and the level of interest on your repayments depends on two things:

Your income (current and forecast)
Your credit score

Which is right for me?

There are various factors informing your choice between car finance and a personal loan. One of the most important is your credit score.

People's credit scores vary for all sorts of reasons. If you have a strong credit score, a personal loan may be cheaper overall.

However, if you have a low or middling credit score, car finance could be for you. Banks are unlikely to lend you the money but there are specialist car finance brokers like us who will.

Other things to consider include:

Mileage limits: personal loans are limitless whereas car finance agreements tend to be restricted.
Vehicle ownership: with a personal loan, you own the vehicle from day one. With a car finance agreement, the car isn't yours until the last repayment has been made.
Flexibility: PCP car finance deals are flexible and allow you to change car every few years.

What are the advantages of car finance?

In our view, there are three main advantages of car finance agreements:

They're flexible
They're convenient
They're good for your credit score in more ways than one

1. Flexibility

A car finance broker or car dealer will offer you a range of car finance options. You're then in a position to choose the best one for your circumstances.

PCP and HP agreements are flexible because they let you hand back the car before the deal is completed. This hinges, however, on you making an agreed-upon number of repayments.

2. Convenience

Personal loans have to be arranged yourself, whereas a car dealer or car finance broker will sort out the finance agreement for you.

3. Credit score

Perhaps most important of all is the question of credit scores.

Your credit score determines how reliable you look to lenders and can affect your ability to borrow in the future.

A car finance agreement can be good for your credit score in two ways. First, making all your repayments on time can improve your credit score, making borrowing easier down the line.

Secondly, you're unlikely to get a personal loan if you have a poor credit score. There are, however, car finance providers like us that specialise in working with people with poor credit.

Which is cheaper?

The overall cost of a personal loan or car finance agreement will depend on a range of factors, from the type of car you want to your current financial situation. This makes it difficult to say which is cheaper without taking a close look at your finances.

Your best bet is to explore the pros and cons of each kind of arrangement, factor in all the costs and then look for the best deal for you.

If, however, you've got poor credit, then car finance is often the best option.

Are you looking for bad credit car finance in Newcastle upon Tyne ? Zoomo is an RAC Approved dealership with a 98% finance acceptance rate. It's quick and easy to apply for finance online .

How long does a CCJ stay on your credit file?

Tue, 04 Aug 2026 15:22:30 GMT

County court judgments (CCJs) affect credit scores. Find out how long they stay on your file in our jargon-free guide.

If you're over 18 and have used or applied for a financial product or service, you'll have a credit file, also known as a "credit report".

These files record your borrowing history and financial behaviour. They're created and managed by credit reference agencies (CRAs). In the UK, the main CRAs are Experian, Equifax and TransUnion.

When you apply for finance, whether for a car, house or any other big purchase, lenders will look at your credit file. This will affect their decision to lend the money you ask for.

Different things can affect your credit file. These include your payment history and the amount of debt you have.

Less common but no less important is a CCJ. If you've been issued a CCJ, it will negatively affect your credit file and stay there for six years.

This can make it more difficult for you to get a loan or finance. But it doesn't make it impossible, especially if you work with a bad credit car finance specialist like us.

What is a CCJ?

A CCJ is a county court judgment. This is a court order issued by the civil court in England, Wales or Northern Ireland. It formally confirms that you owe money to a creditor and sets out a deadline or repayment plan.

In Scotland, the court order is called a "decree" and is issued by the Sheriff Court.

How does a CCJ work?

Let's say you owe money to a bank, landlord or utility company. They will send you a letter of claim telling you what you owe.

Whenever possible, you should pay the full amount or come to a repayment agreement. If you can't, the creditor may take court action against you. If this happens, the court will issue a CCJ by post.

How long does it stay on your credit file?

The CCJ will stay on your credit file for six years unless you pay the full amount within one month.

Once paid, you need to write to the court to say you've paid, including proof of payment from the creditor.

If you pay after one month, the CCJ will be marked as "satisfied". Lenders will still see this on your credit file, but they'll also see that you've paid.

What should I do if I receive a CCJ?

As with most debts, the most important thing with a CCJ is not to ignore it. If you do, you could be taken to court and forced to pay the money back.

What you should do when you receive a CCJ depends on whether you actually owe the money or not. If you don't, you can apply for the judgment to be cancelled.

If you do owe the money, you'll need to pay it back in the way specified by the CCJ. This will tell you:

How much you owe
Whether you need to pay it in full or in instalments
When you need to pay it by

If you can't pay back the money, you can ask to:

Change the terms of the CCJ
Pay it back in instalments
Pay it back in different instalments to those specified in the document

For more detailed information about what to do if you receive a CCJ, take a look at the government website .

Can you get car finance with a CCJ?

Receiving a CCJ doesn't stop you from getting car finance. It does mean, however, that your options will be more limited than they would be for someone without a CCJ on their credit file.

Unfortunately, mainstream lenders are likely to see you as a high-risk borrower and refuse a loan or finance agreement. Specialist bad credit lenders, however, will look at other factors such as your income stability and current financial situation.

The passing of time helps. A CCJ issued a year or more ago looks less bad to lenders than one issued within the last year.

Even if you miss the initial deadline, a paid ("satisfied") CCJ shows lenders that you've taken steps to clear your debts.

You can also improve your chances of getting car finance with a CCJ by providing a larger deposit. That's because a larger deposit means the bank has to lend you less money, thereby reducing the risk they're taking.

But perhaps the best thing you can do is approach a specialist broker – one that, like us, focuses on providing finance to people with bad credit.

What else can affect your credit file?

Your credit file will mainly be affected by:

Your payment history
The amount of debt you owe
How often you apply for new credit

All these details are considered by lenders when you ask them for a loan.

How can you improve your credit file?

Your credit file is a living document. Your present and future financial behaviour are just as important as your past.

This means you can improve your credit file in several ways. You can pay in full and on time. You can reduce your reliance on credit cards. And lenders will often look more favourably on people who have stayed at the same address for a long time.

You can also register on the electoral roll. This validates your identity and your address and has a positive effect on your credit score.

How we can help

If you have a CCJ or other negative marks on your credit file and are looking for car finance in Newcastle upon Tyne , we can help. We believe that bad credit shouldn't stop you from getting the car you need for work, family or personal use.

As an RAC Approved Dealer that adheres to the AA Cars Standard, we can promise a high-quality range of used cars.

We've helped thousands of people with bad credit in Newcastle and nearby get car finance. Could we help you, too? It's quick and easy to apply for finance online .

Can you get car finance after being declared bankrupt?

Tue, 04 Aug 2026 15:22:27 GMT

Being declared bankrupt can come with many challenges. But does it mean you can't get car finance? The truth may surprise you…

When applying for car finance, lenders look at your reliability as a borrower. When weighing this up, they look at lots of things – from your current income to your credit report.

Financial difficulties can impact your ability to get car finance. But in most cases, adverse credit shouldn't be a barrier to getting the car you need – whether you need it for work, family or leisure time.

In the case of bankruptcy, you can get car finance after being declared bankrupt – but typically only once you've been discharged. This "discharge" usually takes place 12 months after the initial declaration.

Your credit score will be affected for up to six years – something that will likely make mainstream lenders look the other way.

It doesn't mean, however, that you can't get car finance. It just means that you have to:

Take steps to improve your credit score
Work with a broker like us that specialises in bad credit car finance

Can you get car finance while bankrupt?

It's very difficult to get car finance while still bankrupt. This is because lenders can't be sure you'll be able to make repayments and so view you as a risky proposition.

Once discharged, however, you're in a much better position to apply. This is because lenders – especially those that specialise in bad credit car finance – look at your current affordability as well as your financial history.

Can you get car finance once you're discharged?

Once you've been discharged from bankruptcy – usually after 12 months – you can apply for car finance. Your best bet is to work with specialist bad credit car finance providers or even lenders that specialise in bankruptcy cases.

The 12-month period applies because after this time, you're considered a "discharged bankrupt". This makes you a more favourable borrower to lenders. It also gives you a chance to get back in the saddle financially before taking on car finance repayments.

Once you've been discharged, you don't need to disclose your bankruptcy to a lender. However, it's important to tell the truth if asked directly.

How long does bankruptcy stay on your credit report?

Most of the time, bankruptcy stays on your credit report for up to six years. After this, the record of bankruptcy is removed from your file.

If, however, you breach the terms of your Bankruptcy Order, bankruptcy can stay on your credit report for up to 15 years. This can happen if you exceed borrowing limits.

How can you improve your chances of getting car finance after being declared bankrupt?

Your credit file isn't a static document. It changes according to your current and future spending and borrowing.

This means you can take concrete steps to improve your credit score and, by extension, your chances of getting car finance.

The three main ways to do this are:

Registering with the electoral roll
Paying on time whenever possible
Limiting the number of hard searches on your credit report

Working with a car finance broker can help by carrying out soft searches on your behalf. These are invisible to lenders, so they don't affect your credit report in the same way that a hard search (formal application) will.

What is a guarantor loan?

A guarantor is someone (typically a friend or family member) who promises to repay a loan if the primary borrower can't pay it back.

This is a big responsibility for the guarantor. A guarantor can, however, increase your chances of getting car finance after being declared bankrupt.

Can I keep my car after being declared bankrupt?

This depends on several factors, including:

The value of the car
Whether you own it outright
Your need for it

If it's an essential vehicle, whether for work, childcare, medical reasons or a disability, you may be able to keep it. The same could apply if it's a low-value vehicle.

If, however, the car is deemed a luxury or has a high value, it can be seized and sold to repay creditors.

In some car finance agreements, clauses may apply allowing lenders to repossess the car in the event of bankruptcy. This can happen even if your payments are up to date. Whether this applies to you or not will be detailed in your finance agreement.

What is bankruptcy?

Bankruptcy is a legal process. If a person or business can't pay their debts, they're declared bankrupt. Non-cash items (assets) are converted into cash (liquidated).

Remaining debts are cancelled to give the bankrupt person or business a fresh start.

If you can't pay your debts, you can apply for a bankruptcy order. This generally involves paying an application fee.

An official receiver or trustee will then take control of your money, properties and valuable possessions. These are sold off to pay the people you owe money to.

In day-to-day speech, "bankrupt" means you have no money. In truth, however, people who have been declared bankrupt are allowed to keep:

Essential items for day-to-day life
Enough money from their income to cover living costs

Any surplus, however, can be taken to pay their debts for up to three years.

What is bad credit car finance?

Bad credit car finance is a special kind of loan for people with poor credit scores. This could be because of late payments, defaults, CCJs, low credit history or bankruptcy.

Bad credit car finance brokers provide loans to people who would be rejected by mainstream lenders.

How we can help

Here at Zoomo, we help people with bad credit to buy cars on finance. We provide a fast – and non-judgmental – service, working with our network of lenders to find suitable packages for drivers in Newcastle upon Tyne.

Do you live in the North East and are looking for bad credit car finance? Explore our fleet of used cars for sale in Newcastle to get started.

Buying your first car on finance: the honest guide

Tue, 04 Aug 2026 15:22:25 GMT

Are you planning to buy your first car on finance? Learn about your finance options, budget considerations and who to buy from.

Buying your first car is a big deal – and often an exciting one too.

Yet with the excitement can come a gnawing sense of anxiety. You may worry that you're not getting the best bang for your buck. And you may feel overwhelmed by the plethora of car finance options available.

Here at Zoomo, we keep things simple. We believe in laying out the options clearly and simply and pointing customers in the right direction.

And that applies even if your credit score is less than glowing. We work with specialist lenders to make sure that your financial history won't determine your driving future.

So, if you need a guiding hand through the world of car finance, read on. We hope it helps you get behind the wheel of your first automobile.

PCP or HP?

There are two main types of car finance: PCP and HP. Let's break down both options.

Personal contract purchase (PCP)

PCP car finance involves paying a deposit up front and then paying monthly instalments for an agreed period.

At the end of that period, you have a choice. You can either make a large "balloon" payment and own the car or hand the car back to the dealer.

PCP is a popular choice and it's often the first suggestion of car dealers. There is, however, another option: HP or hire purchase.

Hire purchase (HP)

HP agreements begin in the same way as PCP agreements. You pay a deposit followed by monthly instalments. However, instead of buying the car with a final balloon payment, you own the car automatically at the end of the finance period.

Naturally, this means monthly payments are higher with an HP agreement than with a PCP. The advantage is that you know you'll have the car at the end of the contract.

Which should I choose: PCP or HP?

The choice between PCP and HP depends on a few factors. At the end of the day, it depends on your unique requirements and financial situation.

You might want to…

Choose PCP: if you want lower monthly payments and flexibility at the end of the contract.
Choose HP: if you're in a position to pay higher monthly payments with lower interest and you definitely want the car at the end of the agreement.

The importance of budget

Now that you've chosen your car finance type, you'll need to give some serious thought to your budget. Without a clear budget, you're likely to end up with a car you can't afford.

1. Make sure you have cash for a deposit

First, you must have access to ready cash for the deposit. This is typically 10% of the car's total value.

2. Be sure you can afford the monthly payments

Secondly, you'll need to look ahead and figure out what you can afford each month.

If you're taking out a car finance agreement, monthly payments are inevitable. The good news is that most agreements have fixed monthly instalments. This means you don't have to plan for nasty price hikes.

3. Plan for ongoing costs

Thirdly, you should plan for running costs and maintenance costs. These can include car insurance, fuel, annual MOTs, maintenance, servicing and even clean air charges.

4. Stick to the mileage limit

Finally, you should consider your probable annual mileage. This is because PCP agreements and car lease agreements tend to come with a mileage limit. You'll be penalised for going over the limit, so make sure you have a rough idea of how much you'll drive the car.

Keeping these things in mind boosts your chances of getting a car within your budget and not running into financial difficulties down the line. If in doubt, ask your dealer for guidance.

An experienced and professional dealer will be happy to talk you through your options.

Who should I buy my first car from?

You have two main options when buying a car. You can buy from a private seller or you can buy from a car dealership.

You can sometimes find good deals with private sellers, but there's always the risk of getting scammed and it can be hard to get a refund.

Buying from a dealership is a much safer bet. When buying from a dealer, here are some questions to ask before you pay:

How much is the deposit?
How much are the monthly payments?
How much is the final balloon payment? (In the case of a PCP agreement)
How much interest will I pay?
How long is the contract?
What's the mileage limit?
What rules are there around wear and tear?
Are maintenance and servicing included in the deal?

Asking these questions before committing to a purchase dramatically increases your chances of getting a car on finance that's right for you.

What if I've got bad credit?

People have bad credit scores for all sorts of reasons. And while mainstream lenders are likely to give your application a swerve, specialist brokers like us are happy to help.

The fact is that you'll need to pass a credit check to get a car on finance. If your application is turned down, it will be marked on your credit report. This is one of the main reasons why you should work with a specialist broker if you know you have bad credit.

It's also worth noting that applications for credit count as hard searches. This means they stay on your credit file for six years and affect your credit applications in future.

To carry out soft searches that don't make a mark, you should work with a car finance broker that will carry out eligibility checks on your behalf.

You may also be offered a guarantor loan. This means someone else agrees to pay back the loan if you become unable to. This person is known as the "guarantor".

We hope this guide helps you take the first steps to buying your first car on finance.

And if you're looking for bad credit car finance in Newcastle , we can help. Learn more about how finance works or apply online today – it only takes a few minutes.

IVA and car finance: your honest options explained

Tue, 04 Aug 2026 15:22:23 GMT

Are you looking for car finance with a current or completed IVA? Learn how the process works and explore your options.

If you owe debts to more than two creditors, you may have an individual voluntary arrangement (IVA). This limits how much you can spend on food, clothing and leisure while you pay off an agreed amount of money.

It doesn't mean, however, that you can't apply for car finance. Yes, there are steps you have to take that people without an IVA don't have to. But there's no reason why you should have an IVA and not buy a used or new car on finance.

Here at Zoomo, we specialise in car finance for people with bad credit. So, if you're in the situation we've described, get in touch . We'll be more than happy to talk you through your options.

What is an IVA?

An IVA is an individual voluntary arrangement. It's a legally binding agreement between you and your creditors (the people or organisations you owe money to).

You pay back all or part of your debts over a set period to an insolvency practitioner (IP). The IP then divides the money among your creditors.

An IVA typically lasts four years. Once the last payment is made, any remaining unsecured debt you haven't paid off is written off.

Can you get car finance while in an IVA?

Having an IVA doesn't stop you from getting car finance. It does mean, however, that you have to clear some hurdles.

First, you must get written permission from your IP or supervisor. This is because most IVAs have a clause stopping you from taking on new credit over a threshold without permission – typically a threshold of £500.

To get written consent, you also have to demonstrate that the car is essential and that the monthly payments fit within your agreed IVA budget.

Secondly, you'll need to apply to specialist lenders. Most lenders will decline applicants with an active IVA, seeing them as too much of a financial risk.

However, bad credit brokers (like us) will look at your recent financial behaviour, not just your credit score. This means you stand a far better chance of getting car finance even with an outstanding IVA.

Finally, you need to choose the right type of car finance agreement.

Hire purchase (HP) is usually the most realistic option. That's because it provides fixed monthly payments without a large balloon payment at the end of the agreement.

When applying for car finance with an IVA, it's important to carry out soft credit searches. This means using an eligibility checker rather than applying directly for finance. A car finance broker can also do this for you.

This is important because soft searches aren't marked on your credit score whereas recent hard searches can make lenders think you're less creditworthy.

Can you get car finance after your IVA is completed?

Once your IVA is completed, it becomes easier to get car finance. That's because finance brokers and lenders will look more closely at your current money management than your completed IVA.

You'll be removed from the Individual Insolvency Register three months after your IVA ends. However, the arrangement will remain on your credit file for six years from its start date.

When applying for car finance, you should take the same approach as when you have an active IVA. Hard searches hurt your credit score, so make sure you use soft-search eligibility checkers – or get a car finance broker to use them for you.

What are the different types of car finance?

There are four main ways to finance a car.

1. Personal loan

This is where you borrow money from the bank or other lender and use it to buy a car from a dealer.

Under this arrangement, you own the car from day one and make set repayments (with interest) to the lender.

2. Personal contract purchase (PCP)

This is where you pay an upfront deposit followed by fixed monthly payments.

At the end of the agreement, you hand the car back and either start a new deal or pay a large "balloon" payment to own the car.

3. Personal contract hire (PCH)

This is essentially a long-term rental agreement, where you pay fixed monthly payments but never get to own the car. At the end of the agreement, you hand the car back to the rental company.

4. Hire purchase (HP)

This is where you pay a deposit followed by fixed monthly repayments. These cover the entire value of the car with interest. After the final payment – and a nominal option-to-purchase fee – you own the car outright.

What's the best kind of car finance if you have an IVA?

In practice, the most realistic kind of car finance when you have an IVA (or have recently completed one) is an HP agreement. Unlike a PCP arrangement, there's no balloon payment waiting at the end of the agreement.

In this situation, your HP agreement this will need to be arranged through a specialist bad credit car finance broker like us.

What car can I get with an IVA?

There isn't a fixed amount of car finance you can get with an active IVA. The limit is typically determined by:

Your disposable income after IVA payments and living costs
The lender's affordability assessment

And as with any borrowing under an IVA, you'll need written permission from your IP if you're looking to borrow more than £500.

In practice, people with IVAs can typically get older used cars worth £4,000 to £10,000. This amount can increase if your income is strong, the IVA is running successfully and affordability is clear.

Based in Newcastle upon Tyne, Zoomo helps people secure car finance, no matter their credit history. Check your finance eligibility today or apply online – it only takes a few minutes.

The Driver's Seat - Zoomo Blog

Car finance in Scotland: options if you're not near a dealership

Looking for car finance in Scotland but you're nowhere near a dealership? Find out how we can help.

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How to get car finance if you're not near a dealership

Option one: get a personal loan

Downsides of a personal loan: more freedom, potentially more hassle

Option two: use Zoomo's delivery service

Why work with us?

What kinds of car finance do you provide?

What kinds of cars are best for driving in Scotland?

What is an RAC Approved Dealer (and why should you care)?

RAC Approved Dealer status is non-negotiable when buying a car on finance. Find out why in our guide.

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What is an RAC Approved Dealer?

What inspection standards apply?

What does RAC Approved Dealer status guarantee about a car?

Why is RAC Approved Dealer status non-negotiable when buying a used car?

How we can help

Your questions answered

The September plate change: is it really the best time to buy a car?

Are you looking to buy a used car? Find out if September's plate change makes it the best month to buy.

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Why do plate changes affect sales prices?

Why do used car dealership stock levels peak in September?

How to use timing to your advantage

How are car number plates formulated?

Does a car registration expire?

When was car registration introduced in the UK?

Automatic vs manual: which should you buy on finance?

Want a car on finance but can't decide between manual and automatic? Explore running costs, finance costs, servicing and other considerations.

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Running costs

Servicing

Sticker price

Insurance

Finance costs

Resale value

Key considerations

Manual

Automatic

Are all hybrid and electric vehicles automatic?

When were automatic cars invented?

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Car finance declined? Here's exactly what to do next

Getting declined for car finance is a blow. Find out what steps you should take to maximise your chances next time.

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Steps to take after a car finance rejection

1. Check your credit reports

2. Find out why you were rejected

3. Wait

4. Save a deposit

5. Apply for a cheaper car

6. Use soft searches

7. Work with a bad credit car finance broker

Can car finance help improve my credit score?

Why are car finance applications rejected?

Should I buy a hybrid car? The no-nonsense answer

Unsure whether to get yourself a hybrid electric vehicle (HEV)? Explore the pros, cons and what your options are.

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Different drivers, different cars

What are the advantages of hybrid cars?

What are the disadvantages of hybrid cars?

Mild hybrid vs full hybrid vs plug-in: what are the differences?

Mild hybrids

Full hybrids

Plug-in hybrids

What are the typical running costs for a hybrid car?

Fuel costs

Servicing

Insurance

Tax

Depreciation

How we can help

RAC warranty on a used car: what is actually covered?

What is RAC warranty cover and how does it apply to used cars? Find out what's covered and why it matters.

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What does the RAC warranty cover on a used car?

What level of cover does Zoomo provide?

What doesn't RAC warranty cover on a used car?