AA Car Loan

Top deals

Top rate

AA

6.3%
£5,000 - £7,499
1-7 years

Check eligibility Representative Example: The representative APR is 6.3% so if you borrow £6,500 over 5 years at a rate of 6.3% (fixed) you will repay £126.04 per month & total amount payable £7,562.50.

Post Office

7.3%
£5,000 - £7,499
1-7 years

Check eligibility Representative Example: The representative APR is 7.3% so if you borrow £6,500 over 5 years at a rate of 7.3% (fixed) you will repay £128.91 per month & total amount payable £7,734.72.

Santander

7.4%
£5,000 - £7,499
1-5 years

Check eligibility Representative Example: The representative APR is 7.4% so if you borrow £6,500 over 5 years at a rate of 7.4% (fixed) you will repay £129.20 per month & total amount payable £7,751.99.

Review: AA Car Loan

The AA might seem like the perfect people to go to when applying for a AA car loan to buy a new car and with rates as low as 3.6% they are certainly worth a look.

AA car loan deals are provided by Bank of Ireland as unsecured personal loans. This means it can be a fast and relatively straightforward way to access car finance. Getting a loan from a bank to buy a car is often cheaper than taking a finance deal offered by a car dealership.

If you are considering taking out a low interest car loan with the AA, there are some key points with which you should familiarise yourself.

Benefits of an AA car loan

Take out a car loan with the AA and you can benefit from:

Borrowing from £1,000 to £25,000
Repaying over 1-7 years
Fixed monthly repayments
APR from just 3.6%
No arrangement fee
No charges for overpaying or paying off your full loan early

Restrictions on AA car loans

When applying for an AA car loan, please remember:

You must be 21 or over
You must be no older than 70 when the loan term ends
You must have been a UK resident for at least 3 years
You must be employed and earning at least £12,000 per year (self-employed people must have been employed for at least 2 years)
The APR you are offered will depending on various factors
If you do not stay on top of your repayments, your credit score could be affected
Failing to repay your loan may cause your account to be referred to a county court-appointed bailiff to recover the debt

Alternatives to AA car loans

For borrowing in excess of £25,000, you may want to think about a secured loan. This involves putting your home up as collateral against the loan and usually allows you to borrow more over a longer period. You may also get a better APR with a secured loan, although this depends on various factors.

The amount you will be able to borrow and the level of interest you will have to pay is largely down to your loan-to-value (LTV) ratio. This shows the total amount you wish to leverage against your home (including existing debt, such as a mortgage) as a percentage of the market value of your home. The lower you LTV, the more attractive an APR you are likely to receive.

When securing debt against your home, it is important to keep in mind that if you do not stay on top of the repayments you may have to sell your home to cover the debt.

Get the best rates on car loans

There are various other lenders across the market offering car loans, so it is a good idea to shop around to find the best deal. Our car loan comparison tool at the top of this page allows you to quickly and easily examine the best loan offers from all the top providers to see which offers you the best value.