A County Court Judgment, commonly known as a CCJ, can make everyday financial life more difficult. It affects your ability to borrow, increases interest rates, and often leads to automatic rejections from banks. For many people, this becomes a serious problem when they need a car for work, family, or daily travel.
The good news is that CCJ car finance does exist in the UK. It is not a loophole or a risky scheme. It is a real part of the lending market, designed for people who have had credit problems in the past but are now able to afford regular payments.
This guide explains how CCJ car finance works, what lenders look at, and how you can improve your chances of getting approved.
What Is a CCJ?
A CCJ is a legal order issued by a county court when someone fails to repay money they owe. It usually happens after a creditor takes court action and the person either does not respond or does not keep up with a repayment plan.
Once issued, a CCJ is recorded on the public register and shared with UK credit reference agencies. It normally stays on your credit file for six years from the date of the judgment.
If the full amount is paid within one month, it can be removed from the register. If it is paid later, it stays on the record for six years but is marked as satisfied, which is better than leaving it unpaid.
How a CCJ Affects Your Credit Score
A CCJ is one of the strongest negative marks that can appear on a UK credit report. It signals that a court had to step in because a debt was not paid.
This usually leads to:
- A sharp drop in credit score
- Rejection from mainstream banks
- Higher interest rates if credit is approved
Even after a CCJ is paid, lenders can still see it until it reaches the six-year limit.
What CCJ Car Finance Means
CCJ car finance is car finance offered to people with County Court Judgments or other serious credit problems. It is provided by specialist lenders who focus more on your current situation than your past mistakes.
Instead of relying mainly on credit score, these lenders look at:
- Your income
- Your monthly outgoings
- Your job stability
- Whether you can afford the payments
This is why people with CCJs can still be approved.
Can You Get Car Finance With a CCJ?
Yes, many people do.
A CCJ makes approval harder, but it does not make it impossible. Lenders are more likely to approve you if:
- Your CCJ is older
- The CCJ has been paid
- Your income is stable
- Your monthly budget supports the loan
Very recent and unpaid CCJs are harder, but not always blocked.
Types of CCJ Car Finance
Hire Purchase (HP)
Hire Purchase is the most popular choice for people using CCJ car finance. You put down a deposit, then make fixed monthly payments that are easy to budget for. Once the final payment is made, the car is fully yours, which makes HP a simple and stress-free way to buy a vehicle.
Personal Contract Purchase (PCP)
PCP can make monthly payments feel more manageable because they are often lower than Hire Purchase. However, there is a larger final payment at the end if you decide to keep the car. This option suits drivers who like the idea of changing cars regularly or keeping monthly costs lower.
Guarantor Finance
With guarantor finance, a trusted family member or friend agrees to step in if you are unable to make a payment. This extra security can improve approval chances, but it also means the guarantor is taking on real financial responsibility, so it should only be used when everyone fully understands the commitment.
No-Guarantor Specialist Finance
Many specialist lenders now offer CCJ car finance without needing a guarantor. Instead of relying on someone else, they look at your income, spending, and ability to afford the loan. This makes it possible to get approved based on your own financial situation, even with a CCJ.
Deposit Rules for CCJ Car Finance
There is no single deposit amount that applies to everyone. While some lenders do offer zero-deposit options, putting down a deposit can make a big difference. It not only improves your chances of being approved but can also help lower your interest rate.
In most cases, a deposit between £500 and £2,000 gives you a much stronger position, and the more you can put down, the lower the risk for the lender. This often leads to better terms and more manageable monthly payments.
Interest Rates With a CCJ
Interest rates are usually higher than standard car finance. This is because lenders take more risk when they lend to someone with a CCJ.
Rates depend on:
- Whether the CCJ is paid
- How recent it is
- Your income
- Your deposit
- The car you choose
What Lenders Check
Most CCJ lenders will look at:
- Your payslips or income proof
- Three months of bank statements
- Your rent or mortgage
- Other debts
- The CCJ details
- The value and age of the car
Bank statements are very important. Lenders want to see that you manage your money in a stable way.
How Old Does a CCJ Need to Be?
Lenders often group CCJs like this:
- Less than 12 months old: high risk
- 1 to 3 years: medium risk
- 3 to 6 years: lower risk
- Over 6 years: usually not visible
Older CCJs are much easier to work with.
Typical Car Limits
Most CCJ lenders prefer:
- Used cars
- Prices between £3,000 and £12,000
- Cars under 10 years old
- Mileage under 100,000
High-value and brand-new cars are much harder to finance with a CCJ.
Can CCJ Car Finance Improve Your Credit?
Yes, it can — as long as you make every payment on time. Each monthly payment you complete is recorded by credit agencies and adds a positive mark to your credit history. Over time, these steady, reliable payments begin to balance out the impact of your CCJ, helping you rebuild trust with lenders and move back toward a stronger credit profile.
Example Monthly Payment
A typical example:
- Car price: £7,000
- Deposit: £1,000
- Loan: £6,000
- Term: 48 months
- Higher-risk interest rate
Monthly payment would usually fall between £190 and £220, depending on the lender.
Final Thoughts
A CCJ does not mean your life has to be put on hold or that owning a car is out of reach. It simply means you need to take a smarter, more informed route. With the right type of finance, a realistic budget, and a car that fits your situation, getting back on the road is entirely possible.
Many people across the UK with CCJs secure car finance every year by working with specialist lenders who look at what they can afford today, not just what happened in the past. By choosing a sensible vehicle, using a deposit where possible, and making payments on time, you can not only get the car you need but also start rebuilding your financial future at the same time.
Frequently Asked Questions About CCJ Car Finance
1. Can I get car finance if I have a CCJ?
Yes. Having a CCJ does not automatically stop you from getting car finance. Many specialist lenders still accept applications if you have stable income and can afford the monthly payments.
2. Will a CCJ reduce my chances of getting car finance?
Yes. A CCJ shows past debt problems, so mainstream banks may refuse. However, specialist bad-credit lenders focus more on affordability than credit score.
3. Is it easier to get car finance if my CCJ is satisfied?
Yes. A satisfied CCJ shows that you have repaid the debt. Lenders usually see this as a positive sign and may be more willing to approve your application.
4. Do I need a deposit for CCJ car finance?
Not always, but having a deposit improves approval chances. A deposit also lowers the loan amount and can reduce monthly payments.
5. Are interest rates higher with CCJ car finance?
Yes. Interest rates are usually higher because lenders see CCJs as a higher risk. The exact rate depends on your income, the age of the CCJ, and the car you choose.
6. What do lenders look at apart from my CCJ?
They check your income, job stability, monthly bills, bank statements, and whether you can comfortably afford the car payments.
7. Will applying for CCJ car finance hurt my credit score?
A soft check does not affect your score. A full application uses a hard check, which may slightly reduce your score, so it is best to avoid making too many applications at once.
8. Can I improve my chances before applying?
Yes. Paying off your CCJ, saving a deposit, keeping your bank account stable, and choosing a lower-priced car all improve your chances.
9. How long does a CCJ stay on my credit file?
A CCJ normally stays on your credit report for six years. After that, it is removed automatically.
10. Can CCJ car finance help rebuild my credit?
Yes. Making all your monthly payments on time helps build positive credit history and can improve your credit score over time.