Compare Car Loans | Secured Personal Loans | MustCompare

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Total to pay back

Monthly payments

Representative APR

Quick Car Finance Car Loan (Broker)

Total to pay back 5,014.43

Monthly payments 167.15

Representative APR 21.9%

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Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0.00, the monthly would be £178.52, with a total cost of credit of £3711.20 and a total amount payable of £10,711.20. Rates may differ as they are dependent on individual circumstances'.

AutoDosh Car Loan (Broker)

Total to pay back 1,316.58

Monthly payments 43.89

Representative APR 24.9%

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The values of the repayment can slightly vary.

Representative example: borrowing £7,500 over 48 months with a representative APR of 24.9% an annual interest rate of 24.9% (Fixed) and a deposit of £0.00, the amount payable would be £238.10 per calendar month, with a total cost of credit of £3,928.80 and a total amount payable of £11,428.80. Rates may differ as they are dependent on individual circumstances.

AutoDosh is a credit broker and not a lender. They work with selected panel of lenders.

Carmoola Car Loan

Total to pay back 2,183.19

Monthly payments 72.77

Representative APR 14.9%

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Representative Example: Borrowing £12,500 over 60 months with a representative APR of 14.9%, an annual interest rate of 14.9% (Fixed) and a deposit of £0.00, the amount payable would be £290 per month, with a total cost of credit of £4,901 and a total amount payable of £17,401, including a one-off Option to Purchase fee of £1.

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How it works

Finding a car loan that suits your pocket can be more complex than choosing the car you want. So we've tried to make it a bit more straightforward when comparing car loans:

Decide how much you need

First, determine how much you need to borrow and for how long you want to pay it back. Be realistic about what you can afford, remember the more you borrow and the longer you pay back, the more you will pay in interest.

Compare car loans

Check the options available to you. You can re-order your results by representative APR, the total amount you will pay back once your loan is paid and monthly payments.

Before you apply

Before applying for a car loan, check the lender's requirements and make sure you fit the required criteria. Review your credit score, as a lender will likely look at this before approving a loan. Finally, make sure you are happy with the terms and are confident you can afford the monthly payments.

Apply for a car loan

Be sure to check if your car loan is secured or unsecured. A secured car loan means your car can be seized if you fail to make repayments on time. Once you are satisfied with the information you have, you can proceed with the application.

Ensure that you have all the information you need, and you can make the monthly repayments before applying for any form of credit.

What is a car loan?

A car loan is a type of secured personal loan. It is a way of purchasing a car to own it straight away. But just like a personal loan, you borrow an agreed amount of money, over a specific length of time, with fixed monthly payments. One of the things to consider when applying for a car loan is if it is secured or unsecured. A secured car loan means a lender will use your car as collateral should you fail to pay it back, so your car could be at risk if you miss payments.

What is the difference between car finance and car loans

Most car dealerships provide car finance. The most common are personal contract purchases (PCP) or hire purchases. With car financing, you do not own your vehicle until you have completed all the payments, and you could lose the car if you miss payments.

A car loan is provided by a separate lender, not your dealership. For example, a bank, building society or lender specialising in car loans. These loans allow you to buy your car outright. Car loans can be secured, in which case the car itself is used as a guarantee.

What are the types of car loans and car finance available?

If you can't afford to buy a car with your own money, the types of car loans and finance available to you can include:

Car loans

Personal loans (which can be used to pay for the car)

Credit cards (an option for cheaper cars)

Hire purchase (you will usually need a deposit)

Personal contract purchase (you will usually need a deposit and a final lump payment if you decide to keep the car).

Remember, with some of these options, you may not actually own the car until the payments have been completed, and if you fail to make a repayment, you can lose the car. It's good to research the various choices are available to you. You can find multiple options online or on sites where you can compare car loans.

How can I get approved for a car loan?

A lender will want to reduce risk when lending you money, and checks will be made before approval. Here are a few things you can do to improve your chances of being approved:

Check your credit report and score. A good credit score will improve the chances you have of being approved for a loan. You may need to improve your score before applying, and although it may take time, with a better score, you may be offered a better deal.

Make sure you have a consistent monthly income, and you can prove this to the lender.

Consider providing a decent deposit or down payment for the car.

Consider purchasing a cheaper car, so you don't have to borrow so much.

No one wants to get rejected when applying for credit, but it's important all the information a lender requests is correctly provided by you. Lenders will use this information to perform affordability checks and ensure the monthly payments are realistic for your circumstances.

Remember not to make too many credit or loan applications in quick succession, as this can result in searches showing on your credit history file, which lenders can see. Too many visible searches (or hard searches) on your credit file may be viewed negatively by a lender and as a sign that you are desperate for money.

Pros and cons of car loans

A car loan lets you buy a car if you don't have the money to pay for it outright. It also means you own the vehicle. However, you will need to pay interest on the money you borrow. Another potential danger is if you fail to make repayments on time, you could lose your car in the case of a secured loan. Also, bear in mind that most cars quickly depreciate, so you're unlikely to get back what you paid initially.

Requirements to get a car loan

The minimum requirements should be provided to you before you apply. These usually include being a UK resident and over 18.

You may also need to provide proof of identity, address or residence, income, insurance, show bank statements and provide vehicle information. A lender will also perform other checks, such as your credit history and affordability checks.

The cost of a car loan

The monthly repayments for a car loan include the amount you borrowed to buy your car, plus interest. This interest rate will depend on the lender, your credit rating, how much you borrow and the term (for how long you will be making the payments).

You may find it helpful to look at both APR and representative APR (RAPR) as a guide. APR includes the interest rate, plus any arrangement fee/other fees. Representative APR is a 'representative' figure of what more than 51% of successful applicants have received as an APR when their application has been approved.

Another point - loan payments will not be your only expense for a new car. Road tax, car insurance, maintenance and fuel are just some of the added costs that will affect your pocket. It's worth estimating these additional costs too before buying a car.

How much should I borrow? -

This is down to your current personal finances. It may be helpful not only to compare vehicle finance options and how much your monthly repayments will be, but to also think about all the additional expenses that come with owning a car. For example, fuel, insurance, maintenance and road taxes. Once you have a monthly total for all these costs, you will know how much you can afford to pay back and the loan amount you will need.

Sometimes it's best to be conservative and borrow less. Give yourself a buffer just in case things go wrong. Remember that your car is at risk if you fail to pay back your car lender.

Can I use a credit card instead of a car loan to buy a car? +

If you can get a credit card with a high enough limit, then a credit card could be an option when considering buying a car. However, you should always check with the dealer you intend to buy your car with a credit card, and this will be an acceptable form of payment.

Remember that the interest rates on a credit card will likely be higher than a car loan. If you plan to use a credit card with an interest-free period, make sure that you can pay off the balance before the interest-free period ends. Before taking on debt, take some time to research options available and evaluate your finances to make sure you can take on the additional costs.

How do I make my car loan repayments lower? +

If you haven't yet taken out the loan, there are several ways to lower your car loan repayments. The first is to borrow less - either by putting more of your own money towards the purchase as an initial outlay or by choosing a cheaper car. You could also discuss with your lender about paying back the car loan over a more extended period to reduce monthly repayment amounts (although this will likely result in you paying more for your loan over time).

If you have already taken out the loan, it is good to discuss any changes to your requirements with your lender to understand what is possible. This could include making a lump repayment in the future towards the balance of your loan to reduce the amount owed. However, whether you can do this depends on the terms and conditions of your loan and the lender's policies. Thus it's good to think about possible changes you may want later on and check with your lender before applying or accepting a loan that these will be possible.

Can I pay my car loan off early? +

This will depend entirely on the terms of your loan and your lender's policies. If this is something you would like to have the option to do, speak to your lender before agreeing to take out a loan to understand what is possible and there are no negative consequences or costs to you.

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