You can take out a loan to cover the cost of buying a car, and you won't need to secure the loan against any other asset.

To get the best car loan, consider:

  • How much 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 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.

  • The representative APR: This is the interest rate you will be charged for your loan. Look for the lowest APR so it costs you less to pay it back.

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

How to apply for a car loan

Use the car loan calculator on this page to enter your loan term and amount. We'll show you how much the monthly payments could cost.

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

They can find loans to buy cars, motorbikes, vans and a range of other vehicle types.

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

To complete their application form you need to confirm:

  • How much you want to borrow and for how long

  • Your personal details including your name, address and date of birth

  • Your employment details

You will be credit checked to see how risky it would be to lend to you. Here is how your credit record affects the loan you get.

How to choose the best type of car finance

The cheapest way to finance your car depends on your circumstances and if you want to own it at the end of the term, trade it in, or just hire a car:

  • Hire purchase: You pay a deposit and then monthly payments over the loan term (usually 2-5 years). You own the car outright at the end of the loan term.

  • Personal contract purchase (PCP): You pay a deposit and monthly payments for a fixed term. When this ends, you can either swap the car for a newer one, or buy it for a final payment.

  • Personal contract hire (PCH): This is similar to buying with a PCP, but there is no option to buy the car at the end of the term.

You could also compare personal loans to buy your vehicle.

Car loans FAQs

Q

Can I use a car loan to buy any car?

A

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

Q

Will I have to pass a credit check?

A

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.

Q

What does APR mean?

A

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.

Q

Do I need to put down a deposit?

A

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

Q

Can I use these loans to buy a used car?

A

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

Q

Can I get car finance with bad credit?

A

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

Q

Do I need gap insurance?

A

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.