Alphera Finance Company: Everything You Need to Know

If you're looking to finance a car in the UK, you've likely come across Alphera Finance Company. As a BMW Group subsidiary launched in 2006, Alphera is an award-winning provider of flexible finance through over 1,500 business partners across the UK. But what makes Alphera different from other car finance providers?

This guide covers everything you need to know about Alphera Finance Company, from their products to eligibility requirements, helping you make an informed decision about your car finance options.

What is Alphera Finance Company?

Alphera Financial Services is authorised and regulated by the Financial Conduct Authority (FCA) under reference number 312578. While Alphera is part of the BMW Group, they're not exclusively a BMW finance provider.

Alphera offers automotive finance for new and used vehicles of various brands. They're motor finance specialists, not a bank. This means they focus exclusively on vehicle financing, offering tailored products and automotive expertise.

Key Features of Alphera

Award-Winning Service: Alphera was named Best Independent Lender and Best Company to Work for in Car Finance, showing their commitment to customer service.

Extensive Network: With partnerships across 1,500+ dealerships throughout the UK, Alphera provides widespread access to their finance products.

Digital Account Management: The MyALPHERA Finance platform lets customers view payments, manage agreements, request settlements, and make online payments.

How Does Alphera Finance Work?

Alphera offers several finance products for different needs:

ALPHERA Select (PCP Finance)

ALPHERA Select is a Personal Contract Purchase (PCP) agreement. You make monthly payments over 3-4 years with the option to own the vehicle at the end. You're the registered keeper, but the finance company owns it until the final payment.

At the end of the term, you have three options:

1. Return the vehicle and walk away

2. Make the optional final payment to own the car

3. Part-exchange for a new car

For more details, visit our guide on PCP finance.

ALPHERA Hire Purchase (HP)

ALPHERA Hire Purchase spreads the entire vehicle cost over the term. You get higher monthly payments but no balloon payment at the end. You own the car outright after the final payment.

HP is ideal for those who:

• Want to own the vehicle without a large final payment

• Don't want mileage restrictions

• Prefer straightforward financing

• Plan to keep the vehicle long-term

ALPHERA Contract Hire (PCH)

Personal Contract Hire is a long-term rental. You never own the vehicle. You pay a fixed monthly amount to use the car, then return it at the end. This suits those who want to drive a new car regularly without ownership responsibilities.

The Application Process

Alphera applications go through dealerships, not directly to Alphera:

1. Vehicle Selection: Choose your vehicle at an Alphera partner dealership

2. Finance Discussion: Speak with the dealer's finance specialist

3. Application Submission: Dealer submits your application to Alphera

4. Credit Assessment: Alphera reviews your credit history

5. Decision: You get a decision within minutes to hours

6. Documentation: If approved, sign the finance agreement

7. Vehicle Collection: Collect your vehicle

Eligibility Requirements for Alphera Finance

Alphera must ensure finance is affordable for customers. Typical requirements include:

Basic Eligibility Criteria

• Age: At least 18 years old

• Residency: UK resident with at least three years of address history

• Income: Regular source of income (employment, self-employment, benefits, pension)

• Credit History: Credit check to assess creditworthiness

What Alphera Considers

• Credit Score: Your history of managing credit

• Debt-to-Income Ratio: Existing commitments vs income

• Employment Stability: How long in current employment

• Deposit Amount: Larger deposits improve approval chances

• Affordability: Whether payments fit your budget

Bad Credit and Alphera

Alphera may accept applications from those with less-than-perfect credit, but expect higher interest rates. If declined, consider:

• Checking your credit report for errors

• Increasing your deposit amount

• Exploring specialist bad credit lenders

• Improving your credit score before reapplying

Benefits and Drawbacks of Alphera Finance

Benefits of Using Alphera

• FCA Regulation: Consumer protection and fair treatment

• Flexible Product Range: PCP, HP, and PCH options for different needs

• Award-Winning Reputation: Industry recognition for service quality

• Digital Account Management: Easy agreement management through MyALPHERA portal

• Widespread Availability: Partnerships across numerous UK dealerships

• BMW Group Backing: Financial strength and stability

• Fixed Interest Rates: Predictable monthly payments

Potential Drawbacks

• Not a Specialist Bad Credit Lender: Specialist lenders may offer better approval chances for poor credit

• Dealer-Only Access: Must go through partner dealerships

• Variable Interest Rates: Lower credit scores mean higher rates

• Early Settlement Fees: Charges for settling early

• Mileage Restrictions on PCP: Excess mileage charges (5-25p per mile)

How to Apply for Alphera Finance

Before You Apply

• Check Your Credit Score: Use ClearScore, Experian, or Equifax

• Calculate Affordability: Vehicle costs shouldn't exceed 20% of take-home income

• Gather Documentation: Proof of identity, address, and income

• Save for a Deposit: Aim for 10-20% of vehicle value

• Consider Term Length: Longer terms = lower payments but more interest

The Application Steps

1. Visit an Alphera Partner Dealership: Find a dealership that works with Alphera

2. Discuss Your Requirements: Be open about budget and credit concerns

3. Choose Your Product: Decide between PCP, HP, or PCH

4. Submit Your Application: Dealer inputs your details into Alphera's system

5. Await Decision: Most decisions come through quickly

6. Review Terms Carefully: Check APR, total amount payable, and terms

7. Sign Agreement: You have a 14-day cooling-off period

Tips for Approval

• Be Honest: Provide accurate information

• Show Stability: Long-term employment and residence

• Manage Existing Credit: Pay down credit cards and bills

• Don't Make Multiple Applications: Multiple credit checks harm your score

• Consider a Guarantor: If credit is borderline

Frequently Asked Questions About Alphera Finance

What credit score do I need for Alphera Finance?

Alphera doesn't publish a minimum credit score requirement. Generally, a score above 700 (out of 999 on Experian) improves your chances with competitive rates. They may accept scores as low as 550-600 depending on income stability, deposit amount, and debt-to-income ratio. Scores below 550 may need specialist bad credit lenders.

Can I get Alphera Finance with bad credit?

Yes, it's possible with bad credit, though approval isn't guaranteed and you'll face higher interest rates. Alphera assesses various factors beyond credit score, including income, employment stability, and affordability. A larger deposit can significantly improve your chances. If declined, explore our bad credit car finance options.

Is Alphera Finance only for BMW vehicles?

No, despite being part of the BMW Group, Alphera finances vehicles of any brand, both new and used. Their network includes 1,500+ partner dealerships across the UK selling various makes and models. You can use Alphera finance for BMW, Ford, Mercedes, Volkswagen, or any other manufacturer if the dealership is part of their network.

What's the difference between ALPHERA Select and ALPHERA Hire Purchase?

ALPHERA Select (PCP): Lower monthly payments, large optional final payment, mileage restrictions, three options at the end (return, buy, or part-exchange). Suits those who want lower payments and may change vehicles regularly.

ALPHERA Hire Purchase: Higher monthly payments, no balloon payment, no mileage restrictions, automatic ownership after final payment. Ideal for those who definitely want to own the vehicle long-term.

Can I settle my Alphera finance agreement early?

Yes, you can settle early at any time under the Consumer Credit Act. You're entitled to settle the full outstanding balance and own the vehicle outright. You might face early settlement fees, but you'll save on future interest charges. Contact Alphera through the MyALPHERA Finance portal for a settlement quote, valid for 28 days.