Car Finance FAQs

Car finance lets you spread the cost of a vehicle over monthly payments instead of paying the full price upfront. A lender pays the dealer for the car, and you repay the lender over an agreed term, usually 1 to 5 years, plus interest. The finance is secured against the vehicle, and with most agreements you don't own the car until the final payment is made.

You choose a car, apply for finance, and if a lender approves you, they pay the dealer on your behalf. You then make fixed monthly payments to the lender for the agreed term. How much you pay depends on the amount borrowed, your deposit, the interest rate and the type of agreement. As a credit broker, Torque compares options from a panel of lenders so you don't have to apply to each one yourself.

With Hire Purchase (HP), your monthly payments cover the full value of the car, so you own it after the final payment. With Personal Contract Purchase (PCP), part of the cost is deferred into an optional final "balloon" payment, which usually makes monthly payments lower. At the end of a PCP you can pay the balloon and keep the car, hand it back, or part-exchange it. PCP agreements come with mileage and condition limits. Compare finance products →

The main types are Hire Purchase (HP), Personal Contract Purchase (PCP), Conditional Sale and Lease Purchase. They differ in how payments are structured, whether there's a final balloon payment, and when you own the vehicle. The right option depends on your budget, how long you plan to keep the car and how many miles you drive. Our team can talk you through which suits you best.

APR (Annual Percentage Rate) shows the yearly cost of borrowing, including interest and any compulsory fees. A representative APR is the rate that at least 51% of customers approved through an advert can expect to receive. The rate you're actually offered depends on your circumstances and credit history, and may be higher or lower.

Yes. Most finance options are available on used cars as well as new ones. Lenders usually set limits on the vehicle's age and mileage at the end of the agreement, and the car will need to meet their criteria. Our team will check this for you before you commit to a car.

Yes. You can check your options with Torque before you've chosen a vehicle, which helps you know your budget before you start shopping. Approvals usually stay valid for around 28 days, giving you time to find the right car. If you need a hand, we can also help you source a suitable vehicle.

No. Finance through Torque is available on vehicles bought from reputable, trusted dealers that meet our requirements. Buying from a dealer also gives you consumer protections under the Consumer Rights Act that a private sale doesn't. If you're struggling to find the right car, we can help source one for you.

To apply, you'll need to be 18 or over, live in the UK (ideally with 3 years' UK address history, although some of our lenders can consider less), and hold a full UK, provisional UK or EU driving licence. We're unable to arrange finance for applicants with other international licences or no licence. You'll also need a regular income that lenders can verify.

Yes, it's often possible. Torque is a credit broker working with a panel of lenders, including some that consider customers with missed payments, defaults, CCJs or an IVA. Approval and the rate you're offered depend on your circumstances and each lender's criteria. A poorer credit history usually means a higher APR. Checking your options with us uses a soft search, so it won't affect your credit score.

It can be possible. Some lenders on our panel will consider customers in an IVA or who have completed one. If your IVA is still active, you'll usually need permission from your IVA supervisor before taking on new credit, so it's worth speaking to them first. Approval depends on your circumstances and the lender's criteria, and rates are usually higher.

It can be possible. First-time buyers and people new to credit often have a "thin" credit file rather than a bad one. Some lenders will look at your income, employment and address history to assess affordability. Making your payments on time can then help build your credit history.

Possibly. Every lender has its own criteria, so a decline from one doesn't mean all lenders will say no. As a broker, Torque can look across our panel of lenders for options that suit your circumstances. If you've applied directly to several lenders recently, applying through us can save you making more hard searches on your file.

Not when you first check with Torque. Our initial application uses a soft search, which you can see on your credit file but lenders can't, and it doesn't affect your score. A hard search only takes place if you decide to go ahead with a full application to a lender, and we'll tell you before that happens.

Yes. Lenders will usually ask for proof of income, such as SA302 tax calculations, tax year overviews or bank statements. There's no fixed minimum trading history: lenders look at your overall circumstances, so it's worth checking your options even if you've only recently started trading.

It may be possible. Some lenders prefer you to have passed your probation period, while others mainly look at your overall employment history and whether the payments are affordable on your new income. We can help find lenders whose criteria fit your situation.

Yes, it can be possible. Torque works with lenders who offer finance to applicants on benefits, and who can count income such as Universal Credit, Child Benefit or disability-related benefits. Lenders still need to be satisfied the monthly payments are affordable for you, so the amount you can borrow will depend on your overall income and outgoings. We'll be upfront about what's realistic for your circumstances.

Usually your driving licence, proof of address and proof of income, such as recent payslips or bank statements. Self-employed applicants may need tax returns or SA302s. You won't need everything to get started. We'll tell you exactly what the lender needs once you choose to proceed.

It depends on affordability: lenders look at your income, regular outgoings, credit history and the vehicle you're buying. They must be satisfied the monthly payments are sustainable for you. Use our finance calculator to get an idea of monthly costs, or check your options with us for a personalised quote.

There's no fixed amount. It depends on the lender, your circumstances and the type of agreement. A larger deposit lowers the amount you borrow, which reduces your monthly payments and the total interest you pay. A car you part-exchange can count towards your deposit.

Yes, no-deposit car finance is available from some lenders, depending on your circumstances and credit profile. Without a deposit you'll borrow more, so monthly payments and the total amount payable will usually be higher. We'll show you both options so you can compare.

Five main factors: the amount you borrow, your deposit, the interest rate (APR), the length of the agreement, and the type of finance. PCP usually gives lower monthly payments than HP because part of the cost is deferred to the end. A longer term lowers monthly payments but increases the total interest you pay. Try our calculator →

Usually, yes. The dealer can settle your existing finance as part of the deal. If your car is worth more than the settlement figure, the difference can go towards your deposit. If you owe more than it's worth, called negative equity, some lenders may allow it to be added to your new agreement, but this increases what you borrow.

If you bought from a dealer, the Consumer Rights Act 2015 says the car must be of satisfactory quality, fit for purpose and as described. "Satisfactory" takes into account the car's age, mileage and price, so a used car won't be held to the standard of a new one. If it doesn't meet that standard, you may be entitled to a repair, replacement or refund, depending on when the fault appears.

Yes. Under the Consumer Rights Act, you have a short-term right to reject a car within 30 days of taking delivery if it's faulty, not as described or not fit for purpose. If you bought it on finance, the agreement ends and you should get your deposit back. Contact your finance provider in writing as soon as possible and explain the problem.

Within the first six months, the fault is presumed to have been there when you bought the car, unless the dealer can prove otherwise. You're entitled to one repair or replacement. If that fails, you can ask for a price reduction or reject the car. For cars, a deduction can be made from any refund to reflect the use you've had.

You still have rights, but you'll usually need to show the fault was there, or developing, when you bought the car, rather than being normal wear and tear. An independent inspection or diagnostic report is often the best evidence. In England and Wales you can bring a claim up to six years after purchase (five years in Scotland).

With Hire Purchase, PCP and Conditional Sale, the finance company is legally the supplier of the car, so it shares responsibility for the car's quality. In practice, contact both the dealer and your lender. The dealer usually carries out any repair, but the lender must deal with your complaint if it isn't resolved. We'll help you through the process if you arranged finance with Torque. Just email complaints@torquemotorfinance.co.uk.

No. The Consumer Rights Act protections on quality and fitness for purpose apply when you buy from a business, not a private seller. A private seller only has to describe the car accurately and have the right to sell it. That's one reason buying from a dealer, especially on finance, gives you stronger protection.

Complain to your finance provider first. They have up to eight weeks to give you a final response. If you're unhappy with it, or don't hear back in time, you can take your complaint to the Financial Ombudsman Service, which is free to use. To complain about our service, email complaints@torquemotorfinance.co.uk or see our complaints process →.

Yes. You have 14 days to withdraw from a regulated finance agreement, starting from the day after you sign it or receive your copy. You don't need to give a reason. Withdrawing cancels the finance, not the car purchase, so you'll need to repay the amount borrowed plus any interest built up, within 30 days of telling the lender.

If you bought the car at a distance, such as online or over the phone without visiting the dealer, you usually have 14 days from delivery to cancel the purchase under the Consumer Contracts Regulations. This is separate from your right to withdraw from the finance. Check the dealer's terms, as you may have to cover the cost of returning the car.

Yes. Under the Consumer Credit Act you have the right to settle your agreement early, either in full or in part, at any time. Ask your lender for a settlement figure. Paying early usually reduces the interest you pay, though the lender may charge a small amount of interest for the early settlement.

Voluntary termination is your legal right under the Consumer Credit Act to end a Hire Purchase or PCP agreement early and hand the car back. You must have paid at least half of the total amount payable, which includes your deposit, fees and any balloon payment, and taken reasonable care of the car. If you've paid less than half, you can pay the difference to reach 50% and then hand it back.

Ask your lender for your agreement's "half-way" figure and check you've reached it. Then write to the lender saying you want to voluntarily terminate under the Consumer Credit Act. They'll arrange to collect the car. You may be charged for damage beyond fair wear and tear, or excess mileage on a PCP.

Voluntary termination is a legal right, so the agreement shouldn't be recorded as a default. It will show on your credit file as terminated or settled. Some lenders may take that into account in future applications, so it's worth speaking to your lender before deciding.

With voluntary termination, you've paid at least half of the total amount payable, so you can hand the car back and owe nothing more, apart from any damage charges. With voluntary surrender, you hand the car back before reaching half. The lender sells it, and you're usually liable for any shortfall, which can affect your credit file.

Contact your lender straight away. Lenders must treat customers in financial difficulty fairly and may be able to offer a payment plan. Missed payments can be recorded on your credit file. On HP and Conditional Sale agreements, once you've paid a third of the total amount payable, the lender needs a court order to repossess the car. Free debt advice is also available from MoneyHelper.

The FCA has confirmed a redress scheme for motor finance agreements taken out between 6 April 2007 and 1 November 2024 that involved certain commission arrangements. Lenders run the scheme, and you can take part directly through your lender, without using a claims firm. Visit the FCA website for the latest details. Torque didn't arrange any finance before 1 November 2024 and doesn't handle commission claims, so please contact the lender that provided your finance. (Last reviewed: October 2026)

With Hire Purchase, PCP, Conditional Sale and Lease Purchase, the lender owns the car until you've made all the payments, including any balloon payment. You're the registered keeper and use it like your own car, but you can't sell it without settling the finance first.

Not without settling the finance first, because the lender still owns the car. Ask your lender for a settlement figure. You can then pay it off yourself before selling, or part-exchange with a dealer who settles the finance as part of the deal. Selling a financed car without settling it is a breach of your agreement.

No. GAP insurance and extended warranties are optional extras, not a condition of getting finance. They can be worth considering: GAP covers the difference between your insurance payout and what you owe if the car is written off, and a warranty can cover repair bills. We'll always explain what's included and leave the decision to you.

Usually, yes, but you'll need your lender's permission. For trips outside the UK, ask your lender for a VE103B "vehicle on hire" certificate, which proves you're allowed to take the car abroad. Check your insurance and breakdown cover apply in the countries you're visiting.

Torque Motor Finance is a UK car finance broker based in Westhoughton, Bolton. We help customers find vehicle finance through a panel of lenders and a network of trusted motor dealers, with personal support from application to collection. Torque Motor Finance Limited (FRN 1061143) is an Appointed Representative of Presto Finance Ltd (FRN 984108), which is authorised and regulated by the Financial Conduct Authority.

No. Torque is a credit broker, not a lender. We introduce you to lenders that may be able to offer finance, and the lender makes the final decision on your application. Working with a broker means you can explore options from several lenders through one application.

No. We don't charge you any fees for our service. We're paid commission by the lender when your finance agreement goes ahead. Full details of how we're paid, and how it may affect you, are on our How We're Paid page.

In three steps. You complete a quick application, which uses a soft search. We then explore options across our panel of lenders. Finally, our team talks you through your quote and helps you get on the road. See how it works →

You'll usually get a decision in about a minute, and a member of our team will call you shortly after to talk through your options. If a lender can help, we'll explain the quote clearly, including the APR and total amount payable, so you can decide whether to go ahead.

With Torque, you'll usually get a decision in about a minute. Final approval can take longer if the lender needs extra documents, such as proof of income. Once everything's approved and signed, the lender pays the dealer and you can arrange collection.

No. Applying with Torque lets you explore your options with no obligation to proceed. You'll see your quote, including the APR and total amount payable, before you decide anything.

Yes. We're based in Westhoughton, Bolton, and help customers across the UK, both directly and through our network of motor dealers. Wherever you are, you can apply online and speak to our team by phone or WhatsApp.

We're open 7 days a week: Monday to Friday 8:30am–7pm, Saturday 9am–6pm and Sunday 10am–4pm. Call 01942 946727, WhatsApp 07498 488236, or email sales@torquemotorfinance.co.uk.