How to Get Approved for Car Finance

Getting the green light on UK car finance

Securing car finance should feel straightforward, yet many applications stall on credit markers, income quirks, or a past County Court Judgment. The reality in the UK is more nuanced. While high street lenders rely on automated rules that often reject CCJs and limited credit histories, specialist lenders take a broader view - looking at the age of any CCJ, whether it is satisfied, and what your current affordability looks like. If your CCJ is over 12 months old and marked as satisfied, your chances typically improve. Even with an unsatisfied CCJ, approvals can still be possible where the rest of your profile stacks up.

A guarantor can also unlock approvals. For under-21s, first-time borrowers, those with low or variable income, or anyone with a CCJ or previous defaults, a strong guarantor gives lenders added confidence. In the UK, guarantors must usually be 21 or over, resident, with stable income and clean credit. Parents, siblings, friends, or even employers can help, provided you are not financially linked through a joint account.

There is an additional angle for many motorists. Following a Supreme Court ruling, the FCA is shaping a redress scheme for motor finance commission arrangements dating back to 2007. Final rules are expected early 2026, with the current pause on complaints lifting on 31 May 2026. If you had PCP, HP, or conditional sale where commission disclosure was unclear, you may be due compensation. That money could reduce existing borrowing or improve your deposit, strengthening a fresh application.

Understanding APR is not just about percentages - it is about what you will pay in real terms over time.

If you want the best shot at approval, focus on lender fit, evidence of affordability, and strategic use of guarantors or compensation where eligible. As a UK retail finance broker, Kandoo can connect you with specialist lenders who look past the headlines and assess your full story.

Next step: gather your last three payslips and proof of address.

Who benefits from this guide

If you have a CCJ on file, thin credit, are under 21, or work part time or self employed, this guide is for you. It also suits applicants with previous finance issues who are unsure where to apply next without harming their credit score. If you held PCP or HP since April 2007 and were not clearly told about commissions, you could be eligible for redress - potentially improving your deposit and your approval odds. Finally, if you value clear steps, a realistic timeline, and lender options tailored to UK rules, you are in the right place.

Routes you can take now

1. Apply via a specialist lender that assesses CCJs in context.

2. Add a strong UK guarantor aged 21 or over.

3. Increase your deposit to lower risk and monthly payments.

4. Satisfy or settle old CCJs, then reapply after updates.

5. Use a broker like Kandoo to soft search and match.

6. Prepare a commission redress complaint for eligible past PCP or HP.

7. Tidy credit files - correct errors, register on the electoral roll.

Small deposits can work, but bigger deposits often unlock better rates.

What it could cost and what you might gain

Short standout: Approval is more about lender fit than a single credit marker.

Who typically qualifies and why it matters

Eligibility revolves around three pillars in the UK: identity and stability, affordability, and credit conduct. Lenders want a confirmed UK address history, usually three years, plus proof of ID and income. Regular payslips or consistent self employed statements help. Affordability is assessed against your take home pay, existing commitments, and essential spending. A higher deposit can offset some risk.

Credit conduct is where many worry. A CCJ is not an automatic decline with the right lender. Older CCJs, typically over 12 months, and satisfied ones are easier to place. Unsatisfied CCJs make it tougher but not impossible if the rest of your case is strong. High street lenders often auto reject based on their systems, so targeting specialist lenders through Kandoo can save you hard searches and time.

Guarantors can tip the balance. The ideal profile is 21 or over, UK resident, stable income, clean recent credit, and preferably a homeowner. They should not be financially linked to you through joint accounts. Parents, siblings, friends, or even employers may qualify. Prepare documents such as the credit agreement and pre contract information if pursuing commission redress, which could improve your position ahead of an application in 2026.

Step-by-step to an approval-ready application

1. Check your credit reports across all UK agencies.

2. Correct errors and register on the electoral roll.

3. Set an affordable budget and target APR range.

4. Gather payslips, bank statements, and proof of address.

5. Consider a guarantor - confirm their willingness and criteria.

6. Use Kandoo for a soft search and lender matching.

7. Choose the best-fit offer and review terms carefully.

8. Sign digitally, then set up direct debit immediately.

Next step: ask a potential guarantor for written confirmation.

What to weigh up at a glance

Read this before you press apply

Aim for soft searches first to avoid unnecessary score damage. Too many hard checks in a short period can look risky and lift your APR. Sense check affordability against your real monthly spending, not just a calculator. Variable income or overtime should be evidenced consistently with statements. If you had PCP or HP since 2007 and commission disclosure was unclear, start gathering documents now. The FCA has paused most complaints until 31 May 2026, with final rules expected early 2026 and complaint windows extending at least until July 2026. Being ready early can move you up the queue when the pause lifts. Finally, read any conditional sale, PCP, or HP terms closely and ensure you understand mileage limits, balloon payments, and early settlement costs.

Alternatives worth considering

1. A cheaper used car to reduce borrowing and APR.

2. Personal loan from a credit union with fair rates.

3. Leasing if you prefer a lower monthly cost without ownership.

4. Employer-backed schemes or allowances to offset costs.

5. Delay six months to save a larger deposit and settle markers.

Shortlist two options today and request written quotes.

Frequently asked questions

Q: Can I get car finance with a CCJ in the UK? A: Yes. Mainstream lenders commonly auto reject, but specialist lenders assess the age and status of the CCJ and your current affordability. Satisfied or older CCJs improve your chances.

Q: Do I need a guarantor, and who can be one? A: You may, especially if under 21, new to credit, self employed, or holding a CCJ or defaults. Guarantors must be 21 or over, UK resident, with strong credit and steady income, and not financially linked to you.

Q: How big a deposit should I aim for? A: While zero deposit deals exist, 10 to 30 percent often lowers the APR and the monthly payment. Larger deposits reduce total interest and negative equity risk.

Q: I am self employed. What proof helps? A: Recent SA302s, tax year overviews, and bank statements showing stable income. A healthy business track record and separate personal accounts also help.

Q: What is happening with motor finance commission complaints? A: The FCA has paused most complaints until 31 May 2026 while final rules are shaped, expected early 2026. If disclosure was unclear on PCP or HP since 2007, prepare your documents now.

Q: Am I eligible for compensation? A: If you took PCP or HP from April 2007 and commission disclosure was missing or unclear, you may qualify. Collect your credit agreement, Initial Disclosure Document, and pre contract information.

Q: Will applying hurt my credit score? A: Soft searches do not. Hard searches can, especially multiple in quick succession. Using a broker to soft search and match can protect your score.

How Kandoo helps you move sooner

Kandoo is a UK retail finance broker specialising in non standard profiles. We soft search to protect your score, then introduce lenders who assess the full picture, including CCJs and variable income. Where helpful, we structure guarantor applications, coach on deposits, and guide you through eligibility for potential commission redress. Start with a quick check, then compare tailored offers you are more likely to be approved for.

Important information

This guide is general information, not personal advice. Finance subject to status, affordability, and lender criteria. Commission redress timelines and eligibility may change when final FCA rules are published. Always read your agreement and consider independent advice if unsure.