Car Finance Options with a CCJ

Getting car finance with a CCJ - what to expect

If you have a County Court Judgment on your credit file, getting a car on finance can feel out of reach. The reality is different. In the UK, specialist lenders do consider applications from people with CCJs, IVAs, or past defaults. They look closely at your current income, stability, and affordability rather than relying only on your credit score.

A car can be essential for work, family life, and independence. That is why lenders offer products designed for rebuilding credit, often with fixed monthly payments and a clear path to ownership. Hire Purchase is a common route because it is straightforward and does not impose mileage limits. Rates are typically higher than mainstream deals, so understanding total cost and checking affordability are crucial.

Here is what this could look like. Representative APRs for CCJ car finance often start around the mid-20s and can be higher depending on your circumstances. For example, £7,000 over 5 years at 21.9% APR could be about £185.33 per month with a total payable of £11,119.81. Another example sometimes seen is £10,000 over 60 months at 36.1% APR with an approximate total cost of £19,430. These figures are for illustration only and will vary by lender, deposit, and credit profile.

If your CCJ has been fully repaid and marked satisfied, it generally helps. You can request a Certificate of Satisfaction from the court to support your application. Even if the CCJ is still within the six-year period on your credit file, lenders may approve if your recent behaviour is stable and the repayments are affordable.

Bottom line: car finance with a CCJ is possible in the UK. The key is to compare offers carefully, avoid overcommitting, and use soft-check eligibility tools before proceeding to a full application.

Good finance is not about perfect credit - it is about realistic, sustainable monthly payments you can comfortably keep up with.

Who this helps - and when it may not

If you have a past CCJ and need a reliable vehicle for commuting, family commitments, or essential travel, specialist car finance could be a practical solution. It suits people who have steady income, can evidence regular outgoings, and want fixed monthly payments to help plan their budget. You do not need a deposit in many cases, though having one can improve your options and reduce costs.

It may not be right if your income is unpredictable, you have multiple recent missed payments, or other debts are already hard to manage. In those situations, it can be sensible to pause, seek free debt advice, or wait a few months to improve your position before you apply.

Your finance routes at a glance

1. Hire Purchase - fixed payments, ownership after final fee, no mileage limits.

2. Personal Contract Purchase - lower monthly payments, optional final balloon, mileage limits apply.

3. Guarantor-backed finance - a credit-strong guarantor supports your application.

4. No-deposit HP - start without a deposit if affordability checks are met.

5. Larger deposit HP - lower risk to the lender and potentially better rate.

6. Shorter term HP - pay off faster, higher monthly payments but less total interest.

7. Used car focus - lower purchase price can improve affordability and approval odds.

What it might cost and what to weigh up

Can you qualify - and what lenders look for

A CCJ remains on your UK credit file for six years from the issue date, whether satisfied or not. Lenders can see it, but many still approve applications when the recent picture is stable. A satisfied CCJ is viewed more positively, and having the court’s Certificate of Satisfaction can strengthen your case. Some people choose to wait a few months after receiving a CCJ to show consistent bill payments before they apply.

Specialist lenders focus on affordability. Expect checks on income, outgoings, employment status, and proof of address. A deposit is not essential, but it can reduce the loan size and potentially unlock a better rate. A guarantor with strong credit can also help, provided both parties pass affordability checks. If you already have a car on finance, lenders will account for that commitment too.

Kandoo is a UK-based retail finance broker that can connect you with lenders who regularly consider CCJs. Brokers commonly offer soft-search eligibility checks so you can see your options without affecting your credit score. If you are approved, the lender will then complete a full credit search before finalising any agreement.

From enquiry to keys - simple steps

1. Check your credit report with UK agencies.

2. Set a monthly budget that leaves breathing space.

3. Decide on deposit size - even a small one helps.

4. Use a broker’s soft-check to view eligibility.

5. Compare HP offers and total repayable amounts.

6. Submit documents - ID, income, and address proof.

7. Read the agreement and ask questions.

8. Sign only when affordable and clear.

Upsides and trade-offs to consider

Read this before you press apply

Finance with a CCJ is about control and clarity. Set a budget you can keep even if costs rise elsewhere. Build in a buffer for insurance, tax, fuel, servicing, and repairs because monthly finance is only part of the total cost of motoring. If a deal looks cheap, check the total repayable rather than focusing only on the monthly figure.

If your CCJ is satisfied, gather the paperwork to prove it. If it is recent, consider waiting a little while to demonstrate stable payments. Use a soft-check tool first to avoid unnecessary credit footprint. If you have savings, a modest deposit can reduce your payment and show commitment, but do not leave yourself without an emergency fund.

If anything feels unclear, pause and ask the lender or broker to explain. Good providers will welcome questions and give you the detail you need to decide with confidence.

Alternatives if finance is not right today

1. Save for a larger deposit to reduce loan size and APR.

2. Consider a cheaper used car to keep payments manageable.

3. Use public transport or car clubs while rebuilding credit.

4. Borrow with a guarantor who meets affordability tests.

5. Wait a few months to improve your credit file and stability.

Common questions - clear answers

Q: Can I get car finance with an unsatisfied CCJ? A: Yes, some specialist lenders will consider it if the rest of your profile is stable and the repayments are affordable. Approval depends on income, outgoings, and recent payment behaviour.

Q: Will a satisfied CCJ improve my chances? A: Usually yes. A satisfied CCJ shows responsibility and can help with approvals and rates. Ask the court for a Certificate of Satisfaction and keep it for your application.

Q: Which finance type suits CCJ holders? A: Hire Purchase is often preferred because payments are fixed and you own the car at the end after paying an option-to-purchase fee. There are no mileage limits as there are with PCP.

Q: What APR should I expect? A: Rates are typically higher for CCJ cases, often from the mid-20s APR and sometimes above 30%, depending on your circumstances. Compare the total repayable, not just the monthly figure.

Q: Do I need a deposit? A: Not always. Many lenders offer no-deposit options. Putting money down can reduce monthly cost and overall interest, which may improve approval odds.

Q: Will applying hurt my credit score? A: Brokers commonly start with a soft search that does not affect your score. A full application with a lender uses a hard search, which will appear on your credit file.

Q: Can this help rebuild my credit? A: Making every payment on time can help improve your credit profile over time. Choose an amount you can comfortably afford and set up direct debit to avoid missed payments.

How Kandoo can help you move forward

Kandoo is a UK-based retail finance broker that connects applicants to a panel of lenders who consider CCJs and other credit challenges. We focus on clear affordability, soft-search eligibility where possible, and straightforward explanations so you can compare options with confidence. If you decide to proceed, we will guide you through the documents and keep things simple from first check to signed agreement.

Important information

Finance is subject to status and affordability checks. APRs and examples are illustrative and not an offer. A CCJ remains on your UK credit file for six years. Always consider total repayable and seek free, independent debt advice if you are struggling with existing commitments. Early settlement may reduce interest but can still involve costs.