Cat N – Can I Buy A Cat N Car On Finance?

👉 What is Cat N?

👉 How Does Cat N Affect Insurance?

👉 Cat N Vs Other Write-Off Categories

👉 Can I Buy A Cat N On Finance?

👉 Final Thoughts

👉 FAQs

What Is Cat N?

Cat N is one of the most common insurance write-off categories. A Cat N car has suffered non-structural damage that will need to be repaired if the car is to go back onto the road. Even though the damage isn’t serious, it will still be considered a write-off and will need to be re-registered with the DVLA before it can be driven again.

Let’s have a look at some of the common cases where a car is declared a Cat N write off:

• Cosmetic damage (dents, scratches)
• Electrical issues
• Damaged seating
• Engine/gearbox issues
• Window damage
• Exhaust/catalytic converter damage
• Cosmetic fire damage

How Does Cat N Affect Insurance?

Although the damage may not be too serious, a Cat N car will usually face higher insurance premiums, or even rejections altogether. With the car sustaining damage in the past, it is seen as a higher risk of future issues by insurers, which is reflected in higher premiums, limited coverage options or even flat-out refusal to insure.

In an insurer’s mind, a car that has previously been written off is more likely to be written off again.

Are Cat N Cars Cheaper?

Where Cat Ns fail on insurance costs, they tend to perform better on price. Previously written-off cars are seen as less desirable, which can bring the price down by up to 40%.

Imagine you’re in a car dealership, and you’re looking at two cars that are the same model. One has been written off in the past, and the other hasn’t. Which option is more appealing? It’s the non-written-off option, right? A non-written-off option will always be more expensive than its counterpart, so if you’re happy to look past previous issues, you could get yourself a good deal 👀.

Cat N Vs Other Write Off Categories

Cat N isn’t the only write-off category.

There are actually six different levels of write-off, all varying in severity. Compared to other categories, Cat N is one of the best write-offs in terms of the level of damage. Cat N is one of the only categories where structural damage hasn’t occurred, with other levels seeing a higher level of damage. We’ve summarised the different categories below.

• Cat A – This is the worst level of write-off. In this case, the car is beyond repair and needs to be crushed.
• Cat B – Here, the main part of the car is damaged. However, other parts can be saved.
• Cat C – The car can be repaired, but doing so will cost more than the car is worth.
• Cat D – Repairs won’t cost more than the car is worth but the whole process (including a rental car) will tip the balance.
• Cat S – The car has suffered structural damage, but this can be repaired.

We’ve covered car insurance write-off categories in more detail in a separate piece.

‘The Different Car Insurance Write-Off Categories’

Can I Buy A Cat N Car On Finance?

Getting a Cat N car on finance is possible, but in some circumstances, it can be harder than financing a non-written-off car. By the time it comes to financing a Cat N car, the damage will have been repaired, and the car will be roadworthy, but that doesn’t guarantee a good deal 👇.

To a finance company, a previous write-off presents a risk. The last thing a finance company wants is the car to experience damage again, and sadly, there is an increased risk of this if the car has been written off in the past.

With this in mind, you may find that finance for the Cat N car could be higher for other options. This isn’t all, though, there are a few other possibilities if you finance a Cat N car:

• Higher interest rates to account for the risk of future issues
• Larger deposit needed
• Limited finance options
• Full vehicle inspection before approval

Saying all that, if you have your heart set on a car that’s previously been written off, car finance is possible. Just be ready for the potential of higher interest rates or a larger up-front payment.

From your perspective, there are a few things to keep in mind when considering a Cat N car, too:

• Make sure the car is fully repaired. Check the vehicle’s logbook to ensure the previous issues have been left in the past.
• Insurance impact. A Cat N car will likely face higher insurance premiums.
• Resale value. If you are looking to own your car at the end of your finance agreement, the resale value of a previously written-off car will be lower than a car with a clean history.

Final Thoughts

Cat N isn’t the end of the world, and the car can be brought back to road quality. You definitely can finance Cat N cars, but you will likely face higher interest rates, larger deposits and greater insurance premiums after sale. Make sure you weigh up the pros and cons before making a Cat N car purchase.

If you’re still committed and have your eyes set on an option, we can help. Tell us about your chosen car and the dealership it belongs to, and we’ll take care of the rest.

Applying for finance with us won’t affect your credit score, meaning that unsuccessful applications have no bearing on your ability to finance in the future. We’ll see if the car fits the bill and will communicate a decision as soon as possible to avoid any traffic in your car-buying journey.

Let us know which car you are interested in, and apply for finance with no effect on your credit file.

Cat N Cars – FAQs