Car Finance FAQs

1. Pick the finance option that best suits you. The most common finance types for cars are either Hire Purchase, Lease Purchase or Personal Contract Purchase, but there are many more finance products. Contact our team to discuss the best options available to you.

2. Pick where to find the finance product. Either through dealers, banks or online comparison tools, you can get an overall view of the repayments and interest rates you might incur. At Forza Finance we have an exclusive panel of partner lenders through which we compare hundreds of finance deals to find you the lowest possible rates.

3. Progress through your car finance application. A simple process that requires a bit of information about you, at Forza you can complete a finance application form online to get a decision in seconds.

At Forza Finance once your finance has been approved your advissor will collaborate with the selected dealership and the funds will be transferred in time for the collection of your new vehicle.

The most common car finance solutions are: Hire Purchase (HP): you will need an initial deposit; you agree to return the vehicle price in monthly instalments at a certain rate of interest, usually over 1-5 years. At the end of the HP agreement, you own the vehicle.

Personal Contract Purchase (PCP): your monthly payments are likely to be lower; when the agreement ends, usually after between 1-4 years, you can choose if you would rather hand the car back, make a final payment and take full ownership of it or part-exchange the vehicle for another.

Lease Purchase (LP): also known as balloon payment finance, you will pay an initial deposit. It works similarly to PCP, however, there is no return option at the end of the agreement, so you will have to pay a deferred balloon element.

Personal loan: you won't need a deposit. You take ownership of the vehicle from the outset, your repayments can span from 1 to 5 years.

Getting accepted for car finance is not a guarantee, but there are plenty of ways you can ensure you have the best chances of getting approved. Starting with providing the most up-to-date and correct information throughout your application process. Research your own credit score and financial details, and the lending criteria of your finance company to ensure whether or not you are eligible for the finance option you want.

You will need to supply personal information such as proof of identity, a valid driver’s licence, proof of address, bank details, employment history. You can then expect a credit check and a financial assessment.

The key difference is visibility to companies. A soft credit check looks at loans and lines of credit, your payment history and any collections accounts, tax lines or other public records in your name. These don't affect your credit score and aren't visible to potential lenders.

A hard credit check looks at your financial history, any applications for credit and if you are currently responsible for any repayments. Hard credit checks look at your credit report, any overdue payments or any debt collection cases will become visible. Lenders will be able to see if you have any previous hard credit checks and whether or not previous credit applications have been successful. These hard checks may temporarily impact your credit score.

When it comes to car finance, mileage allowance refers to the limits of miles you can be expected to cover within your agreement. Your finance deal will quote an annual mileage allowance for the length of the contract. This is not referring to how many miles you do in any one year, but the total when you hand the vehicle back. Cars that have covered higher mileages are worth less, so higher mileages typically involve higher monthly payments.

Typically within your agreement the higher amount of miles required over a shorter time period will impact the residual value and depreciation of your car. If you require more miles over a shorter term the costs of the agreement are generally higher, should you require fewer miles then the cost per month is usual lower.* * this forms part of the price per month cost to you.

Car depreciation refers to the rate at which your car loses its value. In simpler terms, it's the difference between what you pay for a vehicle and what it's worth when its time to sell it or trade it in.

The resale value of your vehicle at the end of the finance deal is referred to as Residual Value. The residual value of a vehicle is calculated by subtracting the depreciation value of the car from its original value.

Guaranteed Minimum Future Value, or GFV, is a calculation of what the vehicle will be worth at the end of the finance term, regardless of true depreciation.

Annual Percentage Rate, or APR accounts for interest rate charged on a car loan or credit line and any additional fees you may have to pay. It aims to show the true cost of financing your vehicle.

With Forza Finance we aim to be as fast as possible. Typically it can take one to two business days to check the documents and financial information you provided before coming back to you with a decision regarding your application for car finance.

If your application outcome is a rejection, an acceptance with conditions or a request for further information, then the process of getting approved for car finance will take longer.

There are a few advantages to paying off your car finance early: - The first one is, you will have a lower amount of interest to pay and can save up money in the long run. However, you'll likely have to pay repayment/resettlement fees to the finance provider (usually one or two months worth of interest).

- You become the rightful owner of the vehicle, in case you previously weren't and can sell it, keep it or modify it as you please. The downsides are: - It can damage your credit score: a history of payments for instalment loans on time gives you a positive score, so paying early or late means it is not considered an "on-time" payment and can temporarily drop your score. - Negative equity: if the amount you owe to the finance company exceeds the current value of the car, you are in negative equity. This means if you were to trade in your car early you would still be unable to pay it all off, so settling car finance early in this situation isn't worth it. Keep in mind that some finance companies charge precomputed interest, this means that regardless of how early you pay off your loan you will still be charged the same amount.

At Forza Finance, we have the flexibility to help you find the best finance solutions for several types of vehicle, including motor cars, motorcycles, commercial vehicles and motorhomes. We make your dream vehicle purchase an affordable reality by accessing a number of specialist vehicle finance deals from our exclusive panel of partner lenders and comparing all of them to find the best deal on your next asset.

If you already found your ideal van or motorbike, get in touch with our skilled team and one of our expert finance advisors will be in touch to discuss your requirements and find the finance package to suit you.

If you haven't found your van or bike yet, take advantage of our vehicle sourcing service and let our experts scan our extensive network of approved dealers to find you the best agreement.

Yes! We provide a wide range of highly competitive finance packages that have been developed to meet your specific financing needs, whether you are a private individual or a business customer. If you are looking to finance a company car we offer plenty of options that ensure you can provide you the best vehicles available. Contact our team to find the best business car finance option for you.