Compare Carmoola Car Finance App – Flexible Car Loans

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What Is Carmoola and How Does Their Car Finance App Work?

Carmoola is a UK lender that is approved by the FCA. It lets you get car finance in a quick and easy way (using the app). You do not need to use a normal car loan broker when you use this app. You can do all you need on your phone. This lets you set a budget, get approval, and pay for the car, all from one place.

Their process is easy and uses no paper. There are no sales calls, and you do not have to wait for a long time. You just fill out an online application and get a soft credit check. You will know right away if you are approved. If you get approval, you can use the Carmoola card to buy a new car or a used car. You can use this card at any UK dealership that is approved.

Key Features:

  • Eligibility: Mainland UK residents, age 18+, valid UK ID
  • Loan type: PCP or HP finance via app
  • APR: From 6.9% (Rep. 13.9% APR)
  • Application process: 100% digital, takes under 10 minutes
  • Credit check: Soft check for budget, hard check at approval
  • Carmoola card: Virtual card for instant car purchases
  • Car type: Used or new cars from 3,000+ approved dealers
  • Customer rating: 2.6 on Trustpilot (2025)
  • Monthly payments: Fixed for loan term (12–60 months)

Who Can Apply for Car Finance With Carmoola?

To use Carmoola, you need to meet these eligibility rules:

  • You must be 18 years old or more.
  • You need to live in the UK mainland.
  • You should have a UK driving licence that is full.
  • You have to have a valid credit profile.
  • You must own a smartphone so you can use the Carmoola app.
  • You have to be able to pay the app's regular monthly payments.

Carmoola will first do a soft check on your credit score. This helps them find out if you can get the car loan. If you get approved, you can then finish the steps to set up your car loan with them. You will be able to choose the loan amount, decide how long you want to pay it back, and check the APR.

What Loan Products Does Carmoola Offer?

Carmoola supports the following products:

  • Hire Purchase (HP): You get to own the car when you pay everything off.
  • Personal Contract Purchase (PCP): You can have smaller monthly payments. You will have to make one bigger payment at the end if you want to keep the car. A personal contract purchase, or PCP, lets you pay slowly over time.

Loan Terms:

Loan Amount £2,000 – £25,000
Term Length 12 – 60 months
Vehicle Type Used or new cars
Mileage Limit (PCP) Typically up to 12,000 miles/year
Deposit Required Not always; depends on applicant
Payment Method Via bank transfer to dealer

You can use the car finance calculator in the app to find out how much you may have to pay back. All you need to do is enter the car price, say how long you want to pay, and give your credit report details. The calculator will then show you what your payment estimates might be.

What Loan Products Does Carmoola Offer

Compare Low APR Car Loans

Low APR (Annual Percentage Rate) car loans are financing options that offer borrowers a lower interest rate compared to traditional car finance deals.

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Can I Finance a Car With Bad Credit?

Carmoola checks many types of credit backgrounds when you apply. People who have a good credit score can get better interest rates. If you have missed payments or if your credit score is low, your APR can be higher. This can also make it so your application will not be accepted.

If you are not sure about it, they can do a soft credit check for you. This helps you see your affordability. There is no risk in doing this.

What Vehicles Can I Buy With Carmoola?

You can get money from them to buy a new vehicle or a used car. The choose from list has over 3,000 approved dealers. All the cars on it are ready to be on the road.

Eligible vehicle types include:

  • There are the petrol, diesel, electric, and hybrid vehicles to choose from.
  • You can get the hatchbacks, saloons, estates, and SUVs.
  • Some models can be up to 10 years old, but this can change from one dealer to the other.
  • Vehicles can have up to 100,000 miles. The mileage you get will depend on what the dealer says.

The Carmoola card works right away after you get approved. You can use it to pay at a local dealership. There are no other steps you need to do. This is good because you can get the car you want from the dealership with no hassle.

What Are the Benefits of Using the Carmoola Car Finance App?

  1. Instant Decisions: You can get car finance set up in a few minutes.
  2. Mobile-first: Do it all in the app. There are no sales calls and there is no waiting.
  3. Soft Credit Check: See your budget with a soft check. It will not harm your score.
  4. Pre-approved Dealers: Pick from over 3,000 dealers in the UK.
  5. Fully Paperless: You do not need to print, scan, or mail any documents.
  6. Flexible Terms: Choose your monthly payment and set the loan amount that is right for you.

Carmoola Loan Example

Vehicle Type Loan Amount Term APR Monthly Payment (approx.)
Used Ford Fiesta £9,000 48 mo 13.9% (rep) ~£249
New Nissan Leaf £15,000 60 mo 10.5% ~£323

Note: These numbers are just examples. What you pay each month and your APR can be different. The amount will depend on your credit score and the time you pick to pay back your loan.

Is Carmoola Regulated and Secure

Is Carmoola Regulated and Secure?

Yes. Carmoola Limited is:

  • This company is allowed and watched by the Financial Conduct Authority (FRN: 958057).
  • It is a UK company that is on the register with the number 12992987.
  • The company is also on the list with the ICO for data safety, using the number ZA905089.
  • It is a member of CIFAS to help stop fraud.

They also have to follow strict rules for security. The company uses good lending practices and does its work in a careful way.

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Carmoola vs Traditional Car Finance Lenders

Feature Carmoola Traditional Lenders
Application process Fully online via app in under 10 minutes Paper forms or web + phone-based process
Credit check Soft search first, hard check only if approved Hard credit check upfront
Documentation No paperwork – ID and licence verified digitally Physical docs or uploads often required
Speed of approval Instant decision via app 1–3 business days for manual underwriting
Loan usage Buy from 3,000+ approved dealerships May require dealer partnership
Interest rate (APR) From 6.9%, rep. 13.9% APR From 7.9% to 19.9% APR typically
Vehicle types New, used, petrol, diesel, hybrid, EV Often limited to certain car types or age
Carmoola Card (virtual Mastercard) Yes – to complete purchase via bank transfer Not offered
Customer service In-app and email support only Phone, email, sometimes in-person
Eligibility Mainland UK residents, 18+, full UK driving licence Similar but more credit-score restrictive
Transparency on rates Shows live offers and terms before hard search Often hidden until later stage
Mobile app required Yes – app-only experience Usually web or in-branch only

Correct as of 31 July 2025

FAQs About Carmoola Car Finance

It is possible. If you do not have a history of borrowing money, your credit profile may be small. But the app will still use a soft check to see if you are eligible.

Yes. You will need to use the Carmoola app if you want to apply for a car loan. The app is also the place where you can see and manage all your car loan details. You will get your virtual Carmoola card through the app too.

Yes, you can pay off your loan early. If you want to do this, you can get the early payoff amount by talking to Carmoola’s support team in the app.

There are no fees when you apply. The amount of interest you pay will depend on your loan amount, the apr, and how long you take to pay back the loan.

After your loan gets approved, you can start using the Carmoola card right away. You will be able to use it to buy a car at a dealership that is approved.

Yes, Carmoola offers affordable car finance for all credit types. While customers with stronger credit histories will typically receive lower interest rates, the app also considers applicants with limited or poor credit history. A soft credit check means you can explore your eligibility and see finance options without any impact on your credit score.

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Page last updated on: 01/08/2025

Page reviewed by: Andrea Troy

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