Carmoola car finance is a UK car finance lender that runs through a smartphone app. It aims to make buying a used car (or refinancing an existing agreement) faster and simpler. You can check your budget quickly, apply in-app, and pay using a virtual card. That card can be used online or in-dealership. It also works with Apple Pay and Google Pay.
If you want to keep comparing, visit our Car Finance deals page. You can also browse UK loans if you prefer a personal loan route.
Carmoola car finance at a glance
- Finance types: HP, PCP, and refinance options (availability can vary by product).
- Rates: from 6.9% APR, representative 13.9% APR (personalised). Finance is subject to status.
- Loan amounts: HP budgets are commonly shown from £2,000 to £40,000. PCP budgets can be higher.
- Where you can buy: 9,000+ UK dealerships are listed as approved on Carmoola’s site.
- Regulation: Carmoola Limited is authorised and regulated by the FCA (FRN 958057).
What makes Carmoola different?
Traditional car finance often happens in the dealership. It can feel slow. It can also feel confusing. Carmoola pushes most of the process into the app instead. You can see an upfront budget, pick a plan, and then pay the dealership using a virtual card. The same card can be added to Apple Pay or Google Pay, if the dealership accepts contactless.
How Carmoola works
- Get a budget in the app: Carmoola highlights quick budget checks and in-app approvals.
- Choose your route: buy a used car with HP/PCP, or refinance an existing agreement (where available).
- Adjust the plan: change deposit, term length, and borrowing amount to fit your budget.
- Check the car: Carmoola promotes free car history checks and valuations inside the app.
- Pay the dealership: use the virtual card online, or use Apple Pay / Google Pay in person.
HP vs PCP: which is better?
Hire Purchase (HP) is often best if you want to own the car at the end. You repay the loan monthly. There are usually no mileage limits. Carmoola’s app listings describe HP budgets and typical terms.
PCP can reduce monthly payments. However, it adds mileage rules and a final optional balloon payment. It can suit drivers who like changing cars regularly.
Pros and cons
Pros
- Fast, app-based application and signing.
- Pay like a “cash buyer” using a virtual card.
- Apple Pay and Google Pay support for dealership payments.
- 9,000+ approved UK dealerships listed.
- FCA-authorised firm (FRN 958057).
Cons
- Rates are personalised. Your APR may be higher than the headline.
- PCP adds mileage limits and end-of-term decisions.
- Refinance is not always available for every product type.
Is Carmoola legit?
Carmoola Limited states it is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 958057). You can also confirm the firm on the FCA register.
Before you apply: quick checklist
- Compare the total repayable, not just the monthly payment.
- If you choose PCP, check mileage limits and the balloon payment.
- Ask what happens if you want to settle early.
- Budget for insurance, servicing, and tyres as well.
Independent help
For free, independent guidance on borrowing and car costs, use MoneyHelper. It’s a solid place to learn what to check before you sign any agreement: MoneyHelper: buying and running a car.
Ready to check Carmoola?
Use the sponsored links below to see the latest Carmoola offers. Always read the terms carefully. Finance is subject to status and availability.
