Bad credit and no credit check car finance works on a business model where you get a car that is overpriced at the start, then you are given a finance deal at a very high APR rate. When you give a credit agreement or finance agreement to a person with bad credit, their likelihood of default is much higher. Also there are many costs for the finance company to get the car back.

Your average guy that has a lot of bad credit is not likely to look after his financed car that well, so in the event that the car is taken, it’s often not worth that much at auction. For many people they are better off looking out for a car in the news paper for around £600 that is in good condition and will give them a year or so of cheap motoring. Instead of finance consider getting a cheaper car and get a loan or loans from your parents or partner.

If you are a business owner you may save money on your taxes if you lease a car. There are some lease companies that do no credit check car leasing. The problems with this type of credit agreement is that the leasing company will require a large cash deposit before you drive away the car or van. Another problem with car or van leasing is that if you go over the mileage that is allowed the fees for additional miles are very high.