Flexible – Taking out a personal loan to buy a car gives you quite a lot of flexibility and you are not bound by car dealers and their terms and conditions. If you have a certain arrangement https://cars45.com/listing/mercedes-benz/slk-class/2004 with a dealer and the loan is secured against the car, you will lose the car if you go several months without repayment. A personal loan can last up to 7 years, giving you extra time to pay it off if you would like to.

Specifically, lower amounts of up to £5,000 generally start at 12%, but only get to 3% once above £5,000 – in which case better rates are available for borrowing higher amounts which may not be favourable to some. Need a good credit score – The best rates are reserved for people with good credit ratings and if you have a fair credit rating or are below average, you could be paying significantly more for a loan. Check the interest rates – fixed or variable? You should always check the interest rate you have been offered, in terms of cost and also to see if it is fixed or variable. You can use eligibility checkers to give you an indicative quote and they do not impact your credit score.

This means that not everyone that applies and approved will get the advertised rate and it could be lower or higher depending on your personal circumstances. Once the loan is approved, you can purchase a new car outright or instalments if you prefer, because once the loan is funded, it is essentially treated like cash. Quick Car Finance is a regulated broker and we offer over 48 different finance arrangements to help you buy the car of your dreams – and this includes helping you find the best rates on personal loans for cars. Not secured – A personal loan is typically unsecured, so your eligibility is based largely on your income and credit status. Cost effective – Personal loans can be incredibly cost effective if you have a good credit rating, stable income and good affordability.

Check the representative APR – As per regulatory guidelines, brokers and lenders must state their rates as ‘representative APRs’ and this means that the rate advertised is available to 51% of successful customers. The loan is unsecured, so if you cannot keep up with repayments, you do not risk losing your vehicle – and you are repaying an individual lender directly instead. This means that you will own the car completely and do not have to spend years paying it off like you would for a PCP or HP deal. You can always repay early too, although you should check for early settlement fees.

By not being secured against a vehicle, you do not risk this being taken away from you if you cannot meet repayments. Our main goal is to maximise transparency in every step of the car buying process. If successful, funds can be transferred to you or the dealer of your choice in 24 to 48 hours. Often more expensive than other forms of car finance – Although low rates are available, this is not available to everyone and the 3% rate advertised may only be available to some customers. You can also buy a vehicle upfront, since the loan is transferred to you in one lump sum.

However, in most cases, lenders and car finance providers will also offer forbearance if you are struggling and this may include offering a payment holiday or a payment plan. Our entire application is online and free to apply, with no impact to your credit score. From a vehicle perspective, this will not impact your ownership of the vehicle if you bought it outright and you will continue to own the car you have purchased. Certainly, if you have a good credit score, you could access some very low rates starting from 3% APR.