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What you need to know about car finance

Rates from 6.9% APR. Representative APR 25.4%

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9.2 out of 10
4 Years
Best available rate XX% APR
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Representative example: borrowing £7,500 over 4 years with a representative APR of 25.4%, an annual interest rate of 25.4% (Fixed) and a deposit of £0.00, the amount payable would be £239.77 per month, with a total cost of credit of £4,008.96 and a total amount payable of £11,508.96.

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Think about it

When you're looking to buy a new house, it's likely that you'll make sure you know how much you have to spend before you start looking.

Shouldn't this be the same process when buying a car? You don't want to fall in love with a car to only work out that it's out of your budget!

That's where CarFinance 247 come in. Finding the finance options to fund your new car is what we do best. With your finance sorted before you even start shopping, you'll know exactly what your budget is, and how you'll pay for your new vehicle in the long run. It makes sense to find out what you can afford at the very beginning.

Why get your finance first?

It's really important as a car buyer to understand your finances before making a purchase. If you check out your finance options first, you'll be in a much better position to make your purchase. Here are four big reasons why getting your finance in place first with us makes sense:

  1. We work with a panel of lenders to find you suitable finance. We're independent, and compare loans from over 18 different lenders. So, you can find the best finance option for your exact circumstances, even if you have bad credit, making your repayments manageable.
  2. Finance Approval in Principle will give you confidence in your budget. Rather than setting your sights on something unaffordable, or being overly-cautious, having finance in place means you'll be able to confidently shop to your budget.
  3. You're free to buy from any reputable dealer. Unlike getting finance at a dealership, if you get approval in principle through us, you'll be able to search dealers across the UK for the right car for you.
  4. You can be sure it's the right deal for you. We work with a panel of lenders to find you suitable finance. It's more tempting to make a snap decision on the spot at a dealership, but with us you'll have time to review your options.

Confused by which finance option you need?

Our page on car finance options gives you full details on loan types, but here's a snapshot:

  • Hire purchase (HP) — allowing you to hire your car until you've paid the loan back in full. You pay it off in set monthly instalments.
  • Personal loan — unlike HP and PCP, these loans are unsecured, meaning you can sell the vehicle at any time as long as you continue to make the agreed repayments.
  • Guarantor loans — This finance option will require you to have a guarantor. A guarantor could be a family member or friend, for example. This finance option is usually suitable to people who have a less than perfect credit history. The guarantor will agree to repay the finance in the event that you default on the loan (e.g. miss payments)

Other ways to finance your car include

  • Personal contract purchase (PCP) — similar to HP, this allows you to hire the car and pay off the loan in monthly instalments (usually over 24-36 months). At the end of the agreement, you can either hand the car back or pay a lump sum to keep it.