Low APR Car Loans

Low APR Car Loans

What is APR?

APR is the annual rate that is charged for borrowing expressed as a single percentage number that represents the actual yearly costs of funds over the term of a loan. Put simply, it is the interest rate that you will pay on a loan with any other charges such as an arrangement fee. The APR that you will be charged on your car loan is likely to vary depending on which lender you visit and whether you are an existing customer with them.

The majority of APR rates are fixed on car loans, meaning your repayments will not change throughout the duration of the loan. However, if you get a loan with a variable APR rate, this can cause your monthly repayments to fluctuate, on the basis of the bank of England base rate.

Car loans are available through the form of both personal and secured loans. Whilst personal loans often require you to repay less overall with shorter loan terms, secured lenders often have more flexible lending criteria, and are usually more willing to offer loans to borrowers with bad credit ratings.

Finding the best APR deal

when trying to find a car loan with a low APR it is important to shop around to review all of your options. It is worth taking into consideration that although many companies may advertise a certain APR rate that you might not receive the same rate. The APR rate advertised does not necessarily have to be offered to all customers, and more likely the rate you will pay will be determined based on market conditions and your personal circumstances.

In addition to shopping around, we also recommend that you contact a mortgage broker. We work with the majority of UK car loan lenders, which means we have access to leading and exclusive car loan deals. Our team of specialist loan advisers can help compare car loans with low APR and help you find a loan deal that is suitable and affordable for you.