Personal Loan
for Car Finance

With a personal loan, you can borrow a lump sum to buy a car.

While we don't currently work with lenders that can provide personal loans at CarFinance 247, you’ll usually receive the loan in one go and then pay it back in monthly instalments. Depending on the type of personal loan you have, this might be fixed amount every month or it could change based on current interest rates.

There’s no deposit needed, but the lender might ask you to pay an arrangement fee upfront or as part of your monthly payments. The thing that makes personal loans really stand out from the car finance crowd is that the finance company won’t own your car – it’s all yours as soon as you pay the seller.

That means no restrictions. You can sell the car, go on an epic road trip, or even take it off-roading; as long as you keep up with your repayments, anything goes.

Keep in mind though that, if you opt for a restricted use personal loan, it could come with terms and conditions. Check the small print to be sure.  

You’ll need to pass a credit check to qualify for a personal loan. Next, you’ll need to decide whether you’d like a fixed or variable rate and how long you’d like to have to pay it back. Typically, the longer your loan period, the lower your monthly payments will be. It’s important to note though that the interest added may mean you’ll end up paying back more overall.

At CarFinance 247, we aren't currently able to offer personal loans. 

One of the best things about using a personal loan to buy a car is that the funds are typically transferred straight into your account so you can purchase like a cash buyer. This means no mileage restrictions or balloon payments to worry about.

However, personal loans can have higher monthly repayments than car finance options like PCP and, as you’ll own the car straightaway, depreciation will be a factor as it loses value over time.

Pros:

• You own the car as soon as you pay the seller
• With a fixed rate loan, your repayments are the same every month
• You’ll have no mileage restrictions and can modify the car however you like

Cons:

• Your interest rate could be higher than other forms of car finance
• You could pay back more overall if you have a long repayment period
• Some lenders restrict the loan amount and loan period you can have

Always check your agreement for restrictions but buying a car with a personal loan could work for you if:

• You want to own the car straightaway
• You want to drive as many miles as you like
• You want to modify the car to your own specifications

For us, used car finance is all about helping people improve their everyday lives.

Whether it’s sorting out the school run, getting that big boot for the big shop, or just the car you’re proud to park outside the office, we work to get the right personal loan deal for you.

Plus, you’ll have a dedicated account manager on hand to help you through the process.

It all starts with a quote. If you’re approved in principle, your account manager will give you a call to talk through your options. No strings attached. They can answer any questions you have and grant you access to our car search – a treasure trove of over 100,000 used cars ready and waiting to find a home. Found a car elsewhere? We can still help – just let your account manager know.