Compare Car Loans
If you want to buy a car either brand new or second-hand you may be looking to borrow some money. If so a car loan might be able to help you.
There is a wide range of car loans available on the market, whatever size of car loan you want to take out you most likely want to get the best deal you can, so it is worthwhile shopping around before you take one out. You can use the comparison calculator on this website to compare over 200 different loans from over 20 different lenders, to help you see some of your options.
Also known as unsecured loans are a type of loan that typically allows you to borrow up to £25,000 over a variable time period. Generally speaking the larger amount you wish to borrow the lower the rate of interest, however this does not mean you should take out a larger loan you cannot afford to service or repay.
Lenders will advertise their personal loans with a Representative APR however this is not the amount you are guaranteed to get from taking out a loan with them. The actual interest rate you are offered may be influenced by your personal financial circumstances like how much you earn and your credit history, these factors may also affect the maximum amount a lender is willing to offer you.
If you are a homeowner and you want to borrow over £25,000 a homeowner or ‘secured’ loan may be an option for you. Unlike personal loans these require you to use an asset like your home as security on the loan, meaning failure to make repayments could mean your home being reposed. Because of this added security on the loan lenders are sometimes willing to loan more than they would be with a personal loan
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. If you are at all unsure of the suitability of a particular product for your circumstances you should seek independent financial advice.
As well as researching the different car loans available to you. You should think if you have any other options before taking one out. Such as if you have any savings it might be beneficial to use these instead, it may be that the interest you pay on a loan will be higher than any interest you earn in your savings.