Have you found your dream wheels but don’t have all of the payment ready up front? A car loan can help you cover the initial cost and break the larger payment into smaller more manageable payments over an agreed period of time.
A car loan can be a suitable option for you if you want to own the car from day one, and not have to lease or arrange a Hire Purchase Agreement with the dealership or manufacturer.
By filling in the application form below, we may be able to find you the lender with the lowest rate that is willing to lend to you today.
What is a car loan?
A Car Loan is essentially a Personal Loan that someone may take out with a lender, with the sole purpose of buying a car.
If you are looking at buying a car, whether it be new or second hand, utilising finance to buy the car outright ensures that you own the car from the moment of purchase. Whereas, if you were to lease the car (also known as Personal Contract Hire) you would never actually own the vehicle, and you would have to give the car back at the end of the lease.
If you have found the right car or are in need of a car ASAP and don’t have all of the money right there and then, a Car Loan may be the right option for you. A Car Loan enables you to spread the cost of your car over a longer period of time in more manageable payments each month.
How much can I borrow?
How much you would like to borrow for your car loan is completely dependent on how much you are willing to take out with a lender, how much you wish to spend on your new car and, of course, how much your lender is willing to lend to you.
You may only need a small loan if the car is relatively cheap, or if you have already saved up most of the money, but you just need that little bit extra to cover the costs.
If it is a more expensive car that you are looking at purchasing, then you may choose to take out a larger loan over a longer period of time. Remember, different lenders will charge different interest rates on your loan, so it is recommended that you look around and make sure that you are choosing the best option for you. You can compare all of our car loan providers through Supacompare today!
Who can get a car loan?
To apply for a Car Loan with The Loan Tree, you must be over the age of 18, a UK resident, currently employed, and earning at least £800 per month.
Lenders may have their own requirements, but by applying with The Loan Tree we will use the information that you have provide us to match you with the most suitable lender that agrees in principal to offer you a loan.
Lenders may check your credit report and score when deciding whether or not to offer you a loan. It is recommended that you check these before applying for a loan to make sure that all of the information on your report is correct.
Do I have to know which car I want before I buy?
Not necessarily!
You may have already found the perfect car, and you just need a car loan to help you purchase it. On the other hand, you may not have found the right car for you yet, but you know what budget you would like to spend and so can secure a loan for that amount.
How much will it cost for me to take out a Car Loan?
With any loan, the amount that you pay back will depend on the interest rate and time period that you agreed with your lender.