Compare Advantage Car Finance Options in the UK

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What Is Advantage Car Finance and How Does It Work?

Advantage Finance Limited is a motor finance company in the UK. It helps people get a used car through hire purchase (HP) plans. The business works with permission from the FCA. Many people who have bad credit or not much credit history can use Advantage Finance. It gives them a way to get a car.

Unlike leasing or personal contract purchase (PCP), with hire purchase (HP) from Advantage, you pay the same amount every month with direct debit. After you pay your last amount, the car will be yours.

Key Features of Advantage Car Finance

Feature Description
Type of Finance Hire Purchase (HP)
Vehicles Covered Used cars (from approved dealers)
Loan Terms 24 to 60 months
Deposit Often £0 deposit required
Repayment Method Monthly via Direct Debit
FCA Registration Yes (Authorised to offer consumer credit in the UK)
Customer Profile Accepts poor to fair credit scores

Can You Get Advantage Car Finance With Bad Credit?

Yes. Advantage Finance is one of the lenders in the UK that gives help to people who have low credit scores or not much credit history.

They check your credit report. They also see if you have a steady income. They want to know if you can afford the car. They do not say no only because you had money problems before.

You’re more likely to be approved if:

  • You need to be at least 21 years old.
  • You must have a UK driving licence.
  • You have to show proof of your income or the benefits you get.
  • You are not bankrupt right now and you are not in an IVA.

This makes Advantage a good option for people who want car loans that do not have the strict rules you often get at regular banks.

Example: A Driver With a 550 Credit Score

James is 32 years old and lives in Manchester. He gets £1,950 each month after tax. His credit score is 550. A few late payments show up on his credit report from two years ago. Now, he needs a used car so he can go to work. But local dealerships will not give him standard car finance.

He used Free Price Compare to apply and finished a soft credit check. They looked at his income and how much he could pay. Because of this, he got matched with Advantage Finance. They gave him a hire purchase deal for a 7-year-old Ford Fiesta. The car cost £5,500.

  • Loan term: The loan will last for 48 months.
  • Deposit: You do not have to pay any money up front.
  • Representative APR: The APR is 24.9%. It depends on your credit profile.
  • Monthly payments: You will pay around £189 each month.
  • Total repayable: The full amount to be paid back is £9,072.

After James made his first few payments on time, he began to see his credit score go up. Now, he owns the car.

Disclaimer: This situation is not real and is used just as an example. The interest rates, monthly payments, and results for approval that you see here could be different for each person. The change happens because of things like your credit, how much you earn, what the lender asks for, and the kind of car you want. The best thing to do is read and know all the rules of any financing offer before you decide to move forward.

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What Are the Current Interest Rates for Advantage Car Finance?

Advantage Finance does not have one single interest rate for every person. The rate you get depends on your credit score, your own money situation, and the vehicle you want to get financing for. Also, things from brokers and changes in the market in 2025 show that the normal APR you see can be in these ranges.

Credit Tier Representative APR Example (Loan over 48 months)
Excellent Credit 9.9% – 13.9% £6,000 = approx. £149/month
Fair Credit 14.9% – 21.9% £6,000 = approx. £174/month
Poor Credit 22.9% – 29.9% £6,000 = approx. £195/month

Disclaimer: These figures are illustrative examples based on average market data from UK brokers in 2025, including Free Price Compare’s panel. Actual rates and terms will vary depending on your personal credit status, deposit, loan term, and vehicle type. Always review the exact APR and total repayable before signing any agreement.

What Are the Current Interest Rates for Advantage Car Finance

What’s the Real Difference Between Advantage and Other Lenders?

Advantage makes it easy for you to buy a car using hire purchase. There are no balloon payments to worry about. There are also no limits like the ones you get in a lease. At the end of the agreement, you will own the car all by yourself.

Here is how Advantage compares to other lenders you see often:

Lender Finance Type Bad Credit Accepted Own Car at End Special Financing Rates
Advantage Finance HP Yes Yes Sometimes (via brokers)
MotoNovo Finance HP/PCP Yes Depends (PCP = no) Yes (via local dealerships)
Moneybarn HP Yes Yes Limited
Close Brothers Motor Finance HP/PCP Yes (selective) Depends Yes
Lendable (personal loan) Unsecured loan Yes Yes (cash purchase) No

Can You Use Advantage Finance at Any Dealership?

Advantage works with dealers that already have approval and are in their partner network. These dealers must meet certain rules. They have to give good quality vehicles, help customers the right way, and follow all needed rules.

If you want to buy from a local dealership, ask if they have Advantage Finance. A lot of brokers, like Zuto or CarFinance247, can also help to check if you will be eligible.

The car must usually:

  • The vehicle has to be used.
  • The vehicle can't be older than 10 years.
  • The vehicle must not have more than 100,000 miles on it.
  • The vehicle needs to pass a check that looks at its condition and history.

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Does Advantage Offer Finance on New Vehicles?

No, Advantage does not give car finance for new cars. Their product is only for used cars in the UK. If you want to get finance for a new car, you will have to use another lender. The lender should also offer PCP or give manufacturer deals.

Can You Manage Your Advantage Finance Through an App?

No, Advantage Finance does not offer a mobile app that you can use to check your account as of 2025. But you can still pay your bills or update your details with them by using other methods.

  • Phone support
  • Postal communication
  • Partner broker portal (if used)

You can call the UK customer service team if you want to get an early settlement quote. You may also contact them if you need to update your direct debit banking details.

How Do You Apply for Advantage Car Finance?

You can not apply for car loans right on the Advantage Finance website. The best way to get their car finance deals is to use a broker like Free Price Compare. They are approved by the FCA.

At Free Price Compare, we work with several trusted lenders in the UK. One of these is Advantage Finance. Our aim is to help you get the best deal for your needs. We look at your credit score, your car choice, and how much you want to spend. All you need to do is give us a few simple details. Then we search for offers that fit you. We do a soft check on your credit score, so this will not lower it.

How Do You Apply for Advantage Car Finance

The process is quick and straightforward:

  1. You put in your personal details and give us information about your car.
  2. We run a soft credit check to find out if you can get a deal.
  3. If advantage finance is good for you, we will show you what they offer. You will also see some other choices.
  4. You pick the deal that is right for you. You can choose the contract length, the deposit amount, and your monthly payments.

This helps you see motor finance options side by side. You will find the rates from Advantage and many other non-prime lenders all in one spot. This means you do not have to go from one site to another. You also do not have to worry about your credit report being hurt.

You can use our platform to get money for your used car from a local dealership that works with us. When you do this, you can also get special deals at the dealership that fit your credit status.

Pros and Cons of Advantage Car Finance

Pros Cons
Works with poor credit Higher APRs for low-score applicants
Simple HP agreement (you own the car) No PCP or leasing flexibility
No large deposit required No mobile app or digital self-service portal
FCA regulated and widely used in the UK Limited to used cars under specific age/mileage rules
Available via multiple brokers Must use an approved dealer

Correct as of 30 July 2025

FAQs About Advantage Car Finance

Yes. Advantage will work with people who do not have a good credit score or only have a fair one. The company cares more about if you can pay for it, not only about your credit score. If you get a steady income, you have a better chance to get approved.

Yes. Advantage Finance Limited is allowed and watched by the Financial Conduct Authority (FCA). This means they follow FCA rules. The company uses reference number 702718.

Most of the time, the answer is no. Many offers with brokers let you start with a £0 deposit. But if you pay a little money first, it can make your monthly payment lower. This will also help if you want to get approved more easily.

Yes, but you may have to pay an early settlement fee. The fee will depend on the time left in your agreement. It is a good idea to ask for a written settlement quote before you move forward.

Missed direct debit payments can appear on your credit file. Advantage may put late fees on your account if you do not pay on time. If you do not pay the debt, they might take the vehicle back.

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Page last updated on: 31/07/2025

Page reviewed by: Andrea Troy

4000+ reviews