Whether looking to buy new or used car, finding the best car loan can be tricky. Don’t assume the finance on offer from your dealer is good value. Sometimes dealer networks or manufacturers offer excellent finance packages, but very often the rates are poor value compared to what’s on offer elsewhere.
To simplify the comparison between car loan deals, separate out the total cost of your car loan from the purchase price of the car, and then shop around using a car loans comparison service that compares like-for-like, such as the one we offer here. Also, be aware that you don’t necessarily need a specific ‘car loan’; any personal secured or unsecured loan can be used to fund buying a car.
If you are a homeowner, or have a poor credit rating, you should consider a secured car loan. Offering an asset (usually your house) as collateral for the loan will generally increase your chances of being offered lower interest rates and more choice regarding repayment terms. However, a secured car loan leaves the lender with the right to repossess your home in the event that you default on your repayments.
If you have an excellent credit rating, an unsecured car loan can be a good option for borrowing smaller amounts, particularly if you wish to repay your car loan quickly with higher monthly repayments. Often, the faster you repay your loan the less interest you will pay overall, making an unsecured car loan an affordable borrowing option without the risk of losing your home.
Finding the right car loan for your individual circumstances can be difficult if you don’t know where to begin looking. Let Totally Money take the hassle out of your car loan search, and bring you the UK’s best car loan deals in seconds. Just complete the form on this page and search the most competitive car loan deals in the market. It’s easy, free and there’s no commitment.