Do you want a car, but don't have the cash to pay up front? Use our simple car finance calculator and then get a quick decision from our credit broker, CarFinance 247. You can find your new wheels through CarFinance 247 or choose one from a dealership.

You'll get:

  • No obligation quotes

  • All credit scores considered

  • 0% deposit loans available.

Borrowing 6,500 over 5 years with a representative APR of 20.7%, an annual interest rate of 20.7% (Fixed) and a deposit of 0.00, the amount payable would be 168.48 per month, with a total cost of credit of 3,608.67 and a total amount payable of 10,108.67. Rates may differ as they are dependent on individual circumstances. Subject to status.

What's CarFinance 247?

CarFinance 247 is the UK's number one car finance broker*. They'll help you find finance from a panel of lenders

You could benefit from:

  • your own personal advisor

  • part exchange

  • no-deposit options

  • finance even with bad credit

  • loans for a range of vehicle types

  • choose a car from an approved dealer.

How does CarFinace 247 work?

  1. Calculate. Check how much you could borrow and what your repayments would be.

  2. Apply. Fill out the online form and get a decision in minutes.

  3. Buy. Choose a car, sign the documents, and away you go!

Ready to apply?

Through CarFinance 247, you could get a car through a:

  • hire purchase agreement

  • personal loan

  • guarantor loan.

Get your no obligation quote and find the right deal.


Why take out finance to buy a car?

Not many people have enough money to buy a car outright with cash.

That's why many people choose to take out a loan of some description to buy a car. The good thing about this is that you don't usually have to secure the loan against another asset, like your home. The loan is just secured against the car itself.

Getting finance is a way of spreading the cost of your car, so you don't have to pay for it all in one go.

How does each type of car finance work?

When people talk about getting 'finance' for their car, they could be referring to one of several financial products.

With multiple types of car finance available, it can be quite confusing when it comes to choosing one. Here's a summary of the popular car finance options:

Hire purchase

You pay a deposit and then monthly payments over the loan term. The loan term's usually 2-5 years. At the end of the term, you own the car outright. But until then, the finance company owns the car and you're essentially 'hiring' it from them.


You pay a deposit and monthly payments for a fixed term. When the fixed term ends, you can either swap the car for a newer one, or buy it for a final payment fee. Sometimes this final fee is called a 'balloon payment'.

Alternatively, you can just return the car. The bigger the deposit you pay, the lower your monthly payments will be. With a PCP, the monthly payments are usually lower than they would be with a hire purchase deal. That's because you're paying off the amount the car depreciates, rather than the whole value of the car.


This is almost the same as buying with a PCP, but there's no option to buy the car at the end of the term. You either swap it for a newer one, or return the car.

Personal loan

With a personal loan, you borrow a sum of money which you pay back monthly over a fixed term. You can then use your sum of money to buy a car. For a personal loan, you won't need a deposit. With this option, the loan doesn't tend to be secured against the car, so you often own the car outright as soon as you buy it. Compare personal loans to buy your vehicle.

Here are all your options to find the best way to pay for a new car.

Which is the cheapest type of car finance?

The cheapest way to finance your car depends on your personal circumstances.

You'll also need to think about whether you want to own the car at the end of the term, trade it in, or just hire a car on an ongoing basis.

With any of the options, it's likely that you'll have to pay interest rates and other fees, so it's important to shop around.

How to choose the best finance for your car

To get the best car loan for your needs, there are a few things to think about.

  • How much do you need to borrow? Find a loan for the amount you need to purchase your car. Some companies offer loans up to 100,000.

  • How long do you need to pay the loan back? Look for a loan that offers a suitable term. Most car loans can be repaid over 1 to 5 years.

  • What's the representative APR? This is the interest rate you'll be charged for your loan. Look for the lowest APR you can find, so it costs you less to pay it back.

  • Do you have a deposit? Different options might be available to you depending on how much - if any - you're putting down as a deposit.

Some loans are secured against the vehicle you buy, so your car could be at risk if you don't keep up your repayments. Check if the loan is secured before you apply.

Get more information on car loans.

Which car finance is right for you?

The main thing you'll need to know is how much you can realistically afford to spare each month to pay for your car. It's important not to overstretch yourself to the point that you can't afford to make the payments.

The other thing to look at when you take out any form of car finance, is the total cost of the credit. This will show you which deal is best overall, across the time period. Don't forget that if you go for a longer loan term, your monthly payments are likely to come down, but you'll probably pay more interest overall. So it might not be the best deal.

Remember that everyone's personal circumstances are different. What's right for someone else might not be right for you, so choose your car finance based on your own situation.

How to apply for a car loan

The free car finance calculator on this page will help you to see how much your monthly payments could cost. All you need to do is enter your loan term and amount.

You can then find a loan with CarFinance 247. Complete the quick and simple application form, and get details of the loan you can get and its interest rate.

Through CarFinance 247 you can find loans to buy:

  • Cars

  • Motorbikes

  • Vans

  • And a range of other vehicle types.

Do I have to pay to get a quote?

No. It's free to get loan quotes from CarFinance 247, and there's no obligation. This means you can choose whether you want the car loan or not once you've got the details.

What information do I need to share to apply?

A car loan application through CarFinance 247 is quick and easy. To complete the application form, you'll just need to confirm:

  • How much you want to borrow

  • How long you want to borrow the money for

  • Some of your personal details (such as name, address and date of birth)

  • Your employment details.

You'll be credit checked to see how risky it would be to lend to you.

What if I have bad credit?

When you do your application, your credit record will be checked.

This could impact what you're offered. If your credit record is poor, it's likely that there will be fewer deals available to you. CarFinance 247 will aim to find you a car loan regardless. If you have a good credit record, it's likely there will be more - and better - options open to you.

It's best not to apply for multiple loans at the same time, as doing so could impact your credit record even further.

Here's how your credit record affects the loan you get

Car loans FAQs


Can I use a car loan to buy any car?


It depends, so check before you apply, but most lenders will let you buy a new or used car from an approved dealership.


Will I have to pass a credit check?


Yes, when you apply the lender will check your credit record. Do not apply for more than one loan at once because this could harm your credit record.


What does APR mean?


It stands for Annual Percentage Rate, and is the interest you pay on the total value of your loan. The lower the APR, the less you will need to repay.


Do I need to put down a deposit?


Most types of car loans need a deposit towards the purchase, but CarFinance 247 includes some no deposit options.


Can I use these loans to buy a used car?


Yes, you can use the loans to buy used or brand new vehicles.


Can I get car finance with bad credit?


Bad credit means fewer deals are available to you, but a broker like CarFinance 247 may be able to find you a car loan.


Do I need gap insurance?


Gap insurance can protect your finances if you write off your car before the end of your finance agreement but can be expensive; find out more here.

Last updated: 2 February, 2021