We're passionate about helping you with your car financing needs, and are particularly good at assisting customers with not-so-great credit histories. We collaborate with lenders who also specialise in lending in this area. The Ozoomi team understands that life can be unpredictable, and sometimes this affects your credit. Cars are essential for most of us and we’ll do all that we can to help you buy yours.
Annual Percentage Rate (APR) is, in simple terms, the rate that you can use to compare how much different finance options are going to cost you in total. It will include the interest being charged on the amount borrowed plus any fees (for example arrangement fees, option to purchase). This is so that you are able to see the total amount being charged to you for buying your car.
The difference between the interest rate and the APR is that the interest rate is the cost of borrowing the principal amount (the amount needed to buy a car) and the APR is the cost of borrowing the principal amount plus any additional compulsory fees imposed by the finance company. Using the APR rather than the interest rate makes it easier to compare loans and credit cards as you have a better idea of how much you’ll have to repay overall.
Yes. the lender’s use a fixed interest rate for the entire duration of your agreement with the lender. This means that once your agreement is made live with them, your monthly payments are locked in and won't change.
Regardless of which finance option you choose, until you make the final payment of your finance agreement and have a zero balance due, the lender has legal ownership of the car. This means you cannot sell or modify the vehicle without the permission of the lender. However, as you are the registered keeper of the car, you are responsible for things such as DVLA Road Tax, insurance, servicing and maintenance.
Outstanding finance is the remaining amount of money that you owe the lender until you have paid off the financial agreement in full so that there is a zero balance.
When you start on your car finance journey, the finance lender pays the dealer up front on your behalf, and you agree to pay them back in regular instalments (your monthly payments) over your fixed-term (an agreed upon amount of time).
To find out how much finance is left on your car, you’ll need to contact the lender and ask for a settlement figure. If you’re thinking about changing a car with outstanding finance, the good news is Ozoomi may be able to help. Simply get in touch with your lender for a settlement figure let us know what it is and we’ll take it from there.
Car finance voluntary termination is when you decide to end a car finance agreement early, and have paid off at least 50% of the total amount payable under the agreement. It allows you to return the car to the finance company without further financial obligations.
If you've paid at least 50% of the total amount owed (including interest and fees), you can voluntarily terminate the agreement. You return the car, and you're no longer responsible for the remaining payments. If you have paid more than 50% of the total cost of buying the car, you will not get a refund from the lender. The vehicle must not have any damage apart from normal wear and tear.
Yes, these payments are often referred to as “over payments,” and are often a good way of paying off your finance agreement quicker and saving money. If you want to make an over payment you’ll need to contact your lender and explain what you’d like to do. The lender will then re-calculate the total amount you need to repay them if you decide to make this payment. Usually making an overpayment will mean that your monthly repayment to the lender stays the same but the term (number of months you borrow the money over) of the agreement reduces. Some lenders may also offer you the option to keep the same term and reduce your monthly repayments to them.
The short answer is yes!
If you're self-employed, you may be asked to provide proof of income, because your earnings may be different from one month to another. However, it’s not always necessary.
This can include, but is not limited to:
A soft search allows potential lenders to access and have a look at your financial history, without it affecting your credit score or file. Simply put, it is a quick check on how you have managed any loans and other financial commitments in the past and whether the lender thinks that you are able to afford additional payments on a car.
Why are Soft Searches Conducted?
Having a soft search on your credit file will not show up to other financial companies or lenders, so there’s no need to worry.
It is important to note, that if you progress with your application and we feel that it’d be beneficial for you to consider (i.e. you might get a better rate, we will seek your permission to send your application through to lenders who may wish to perform a ‘hard search’ - but this will never be without your permission.
Ozoomi is a vehicle finance specialist with many years of experience across our team and we aim to connect you with the right lenders for your needs. Whilst we can’t guarantee car finance approval, we are dedicated to helping you and will go above and beyond to help you get behind the wheel of your new car!
Ozoomi teams up with lots of different lenders to assist people with different credit backgrounds, including those with fair credit. We're passionate about helping you secure a competitive car finance package that’s best for you.
Yes, you can apply for car finance with an IVA. Individual Voluntary Arrangements may make the process slightly longer but Ozoomi will work with you every step of the way to try and make everything as easy as possible.
To make sure everything goes smoothly, we'll ask for a form to be completed by your IVA company to confirm that they are happy with the finance repayments being offered to you by the lender once you have chosen your vehicle. This step is always required right up until you receive a Satisfaction Completion Certificate from the courts confirming that your IVA has been completed.
Ozoomi will not be able to arrange finance for you whilst you are still in your bankruptcy or debt relief order. However, as soon as you have been discharged, we may be able to assist you.
No, not always!
However, if you can put a deposit down, it means that you will borrow less money, which will reduce your monthly repayments, and save you money overall.
Sometimes, lenders make a deposit a condition of borrowing money, and they will tell you the minimum amount needed.
If you have negative equity you may be asked to pay the difference in the form of a deposit.
Please remember, a deposit does not only have to be cash (this includes debit card and payment by bank transfer). Your current car can be taken by the dealer as a part-exchange and used as a deposit, or you may wish to use a combination of cash and your part-exchange as a deposit.
With most dealers, you will be able to part exchange (trade in) your current vehicle when you're getting a new one from them! However, it’s worth considering all your options when part exchanging (hyperlink) your current vehicle to make sure that you are getting the best deal for you.
If you own your current car without any existing finance attached to it, it can be used as a deposit on your new car. The dealer will subtract its value from the new car's cost, and your finance agreement will be calculated on the remaining amount.
Even if you have an existing loan on your trade-in, often you can still get a new finance loan for your new car and clear the loan on your current vehicle at the same time. It’s worth reading about negative equity if you are thinking about doing this.
Swapping your financed car for a new one is possible, but it involves specific steps that you’ll have to follow. If you want to upgrade your car but still owe money on the one you have at the moment, you'll need to end your current agreement with the lender and start a new agreement for the new car.
However, whether this is possible and how much it will cost you depends on the type of car finance agreement you have. "Can I trade my financed car for another one?" is quite a common question, and we're here to help give you all the details you need to understand how this can be done in different situations.
Motor finance is attached to specific vehicles and this means swapping the finance from one car to another on the same agreement is not possible. Instead, you’ll need to settle the contract you have on your current car and take out another finance agreement on the new one.
Regardless of which of Ozoomi’s finance options you pick, until all the outstanding payments are met in full, the lender is the legal owner of the car and you are the registered keeper.
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