Rates from 8.9% APR. Representative Example: Borrow £12,000 over 5 years with a £0 deposit. Representative 19.5% APR fixed rate. Monthly payment: £304.38. Option to purchase fee £10 payable. Total cost of credit: £6,272.80. Total amount repayable: £18,272.80.
Car Finance 247 Limited is a credit broker, not a lender.
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.
“Car finance can be a lifeline for those with bad credit as it offers a manageable way to own a car while rebuilding your credit score with consistent, on-time payments”
For illustration purposes only. The rate and payment you may be offered will be based on your individual circumstances.
Pros:
Cons:
Always check your agreement for restrictions but buying a car with a personal loan could work for you if:
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 will be paid a commission for providing our services and this commission may be a fixed amount or a percentage of the amount borrowed. The interest rate you pay is directly linked to the amount you are borrowing and your individual credit status.