If you’re in need of a car and have a substandard credit score, you might be worried about your options or if you’ll be able to finance a car in general. However, there are some models that are well suited to those with poor credit, including a range of bad credit car finance options available through specialist lenders. With over 2 million cars bought using financing instruments by UK consumers in the 12 months to May 2024, securing vehicle finance remains accessible even for those with less-than-perfect credit histories.
1. Volkswagen Polo
The compact and practical design of the Polo guarantees that it is comfortable and easy to drive for both long and short journeys. While it’s generally a more premium option for the compact car category, a used or certified pre-owned model can give you affordable options if you’re looking for finance approval. The Polo’s strong resale value makes it an attractive proposition for lenders, as vehicles that retain their worth provide better security for finance agreements. Its reputation for reliability and German engineering quality means lower maintenance costs over time, making monthly budgets more predictable for borrowers managing their finances carefully.
2. Toyota Aygo
An efficient city car with reliable driving performance, the Toyota Aygo is known for its longevity and flexible financing options. It’s a stylish option for first-time drivers too, with cheap insurance prices, good connectivity, and reasonable running costs. The Aygo’s excellent fuel economy helps keep ongoing costs low, whilst its proven reliability record makes it a safe choice for those building their credit history. Toyota’s reputation for dependability means fewer unexpected repair bills, allowing borrowers to focus on maintaining their monthly finance payments without surprise expenses disrupting their budget.
3. Kia Picanto
The Picanto is regarded for its low running costs and decent interior, with warranty coverage that can give you extra peace of mind. It’s also one of the cheapest cars in the UK whilst still being mechanically similar to those of higher prices. The engine is well-suited to urban environments but might struggle on the motorway if driven there often. For those seeking car finance, the Picanto has excellent value for money. Its affordable purchase price means lower monthly payments, whilst Kia’s seven-year warranty provides security for both borrower and lender, lowering the risk of expensive repairs during the finance term.
4. Hyundai i10
A subcompact car with good features and easy handling, making it suitable for daily commutes, the Hyundai i10 is highly rated for reliability. The i10’s combination of practicality, fuel efficiency, and dependable performance makes it an ideal choice for those rebuilding their credit score. Its compact size keeps insurance costs manageable, whilst automatic options are available for those preferring simplified driving. The strong reliability ratings provide confidence to both drivers and finance providers, making approval more likely for those with credit challenges.
When choosing a car with bad credit, focusing on reliable, affordable models with strong resale values increases your chances of finance approval whilst keeping long-term costs manageable. These four models are excellent starting points for rebuilding your credit history through consistent, manageable monthly payments.