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Win your car finance with CarFinance 247


If you win, we'll pay off the finance on your car. It's that simple! Your car becomes completely yours, free and clear.

This amazing offer is open to anyone who has secured car finance with us throughout 2023, including Decemeber 2023!

This means that there's still time to enter, get your finance in December, and you're automatically in!

The lucky winner will be announced the week beginning 5th February 2024 on our instagram page.

Terms and Conditions apply.

Understanding APR:
Car Finance Interest Rates Explained

Car Loans | CarFinance 247
Get my quote Rates from 9.9% APR. Representative APR 19.9%
CarFinance 247 is a credit broker, not a lender.
Car Loans | CarFinance 247

Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £10,000 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £255.50 per month, with a total cost of credit of £5,329.80 and a total amount payable of £15,329.80

We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We earn a commission for providing our services, but this does not influence the interest rate you're offered in any way.

By planting a tree for every car finance agreement issued to one of our customers, CarFinance 247 is driving towards a more sustainable future.

Your Ultimate Guide to Car Finance Interest Rates


In this comprehensive guide, we delve into the intricacies of APR (Annual Percentage Rate) and its crucial role in car finance. Understanding APR is important if you’re thinking of financing a vehicle, as it represents the total cost of borrowing over a year, including both interest and any fees you might have to pay. Getting to grips with APR will help you make informed decisions and compare loan offers effectively, and it’s not as scary as it sounds.

Factors Influencing Car Finance APR

The APR offered by lenders for car finance is influenced by various factors that you, as a borrower,  should be aware of. Things such as your credit score, loan term length, and loan amount play a significant role in determining the APR. Lenders look closely at these factors to assess the level of risk of lending to you, which ultimately affects the interest rate you would be offered. By understanding how these factors impact APR, you can take steps to improve your creditworthiness and get your hands on more favourable loan terms.

Understanding Fixed vs. Variable APR

When exploring car finance options, you may encounter both fixed and variable APR. Fixed APR remains constant throughout the length of your loan term, providing stability and predictability in monthly payments. In contrast, variable APR fluctuates based on changes in market conditions, potentially leading to fluctuations in monthly payments. Understanding the difference between fixed and variable APR allows you to choose the option that best suits your financial goals and how much risk you’d be happy to take with payment fluctuations.

Comparing Representative vs. Personalized APR

It's important to understand the difference between representative APR and personalized APR when you’re comparing loan offers. Representative APR is the rate advertised by lenders and may not necessarily be the same as the rate you’d be offered personally, based on your individual circumstances. Personalized APR, on the other hand, takes into account your specific financial circumstances and creditworthiness. By comparing representative and personalized APR, you can gain insight into the actual cost of borrowing and make better-informed decisio

How APR Affects Monthly Payments

The APR directly impacts the total cost of borrowing and, consequently, monthly payments for a car finance loan. A lower APR results in lower overall interest payments and, therefore, lower monthly payments. As you might imagine, a higher APR leads to higher total interest costs and monthly payments – in other words, you’d be paying more in total over the length of your loan term. Understanding how APR affects your monthly payments, will mean you can assess your budget and choose a loan with terms that are manageable and affordable for you.

Negotiating Lower APR

Negotiating a lower APR can significantly reduce the cost of borrowing for a car finance loan. If you have the time, you can be proactive in shopping around and comparing offers from multiple lenders to find the most competitive rates. Higher interest rates are usually given to people with poorer credit scores because lenders see them as a higher risk to lend to, so addressing any negative factors on your credit report can strengthen your negotiating power and increase your chances of securing a lower APR.

Understanding APR and Loan Terms

APR and loan terms (the length of time you borrow the money over) are closely related, with the length of the loan term directly impacting the APR offered by lenders. In general, longer loan terms tend to result in higher APRs, as lenders perceive greater risk associated with extended repayment periods. Shorter loan terms typically come with lower APRs but may result in higher monthly payments due to the shorter length of time you’re paying the loan back over.. Understanding this means you can assess your financial priorities and choose a loan structure that best suits your budget and repayment goals.

APR and Additional Fees

In addition to the APR, you should be aware of the various additional fees associated with car finance, as these can impact the total cost of borrowing. Common additional fees may include origination fees, processing fees, and prepayment penalties. While these fees are typically included in the APR calculation, you should review the loan agreement carefully and ask your lender to explain all the fees to you so you can understand the full extent of the costs. Considering both the APR and additional fees means you can avoid any unexpected expenses.

APR and Creditworthiness

Creditworthiness (or how good your credit history is) plays a significant role in determining the APR offered by lenders for car finance loans. Lenders look at your credit history, credit score, and overall financial health to work out your risk level and determine the appropriate interest rate to offer you. People with higher credit scores and stronger credit profiles are usually offered lower APRs, while those with lower credit scores may face higher rates or may struggle to qualify for financing altogether. By taking steps to improve your creditworthiness, such as paying bills on time, reducing outstanding debt, and correcting errors on credit reports, you can increase your chances of securing more favourable APRs and loan terms.

Regulatory Considerations and APR Transparency

Agencies like the FCA (Financial Conduct Authority) sets out regulatory requirements for lenders to make sure they are transparent and fair in the way they display APR offers. Lenders must give clear and accurate information about APR to you as a borrower, allowing you to make informed decisions about borrowing costs.
Agencies also monitor how compliant lenders are with APR disclosures to protect consumers from deceptive practices and predatory lending. Understanding your rights when it comes to APR disclosure and transparency means you can keep an eye out for anything untoward and seek recourse in the event of non-compliance or misconduct by lender


* The UK's largest online car finance broker by unique users to the website. Based on Similar Web data – 1,137,647 to CarFinance 247 vs. 753,819 for nearest competitor. January to June 2023.

CarFinance 247 is a trading name of CarFinance 247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525).

CarFinance 247 is authorised and regulated by the Financial Conduct Authority for insurance distribution and credit broking (Firm Reference Number: 653019). CarFinance 247 is registered with the ICO (Registration Number Z1897658).

Finance is subject to status and is only available to UK residents aged 18 and over. Written quotations are available on request.

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