Use Our Free Car Loan Calculator and Get a Quote Today!
At Quiddi Compare, we work with leading car finance companies so that you can borrow money towards the car, motorbike or van of your dreams.
The lenders we feature allow you to borrow up to £50,000 towards your vehicle and repay in fixed monthly instalments over 12 to 60 months and the option to pay early if you wish.
It is important to compare car finance deals because every provider has different rates and terms, with some requiring deposits.
Above all, the interest rates you pay may outweigh any deal you are getting from the car dealership or private seller – so by using our free car loan calculator, you can enter how much you wish to borrow and how long for and this will give you an idea of what you can afford to borrow.
The Types of Car Finance
There are several different types of car loans available in the UK with some requiring deposits and others with the risk of repossession, so it is essential to check the terms and conditions.
Personal Contract Payment
Commonly referred to as PCP or a leasing agreement, this involves paying monthly instalments with one big payment at the end of the loan term. When this final payment is due, you can choose to keep the car, part exchange for a new car or hand the car back.
This is an unsecured no deposit car loan and is a flexible option if you are not sure how long you want to keep the car for and if you want to change models at the end of the loan term.
Personal Contract Hire
With PCH, this is an unsecured car loan where you will make monthly payments for your vehicle and at the end of the loan term (e.g 5 years), your contract will expire and you can choose to return the car or take out a new contract and get a new car.
A hire purchase or HP requires an initial deposit prior to receiving the loan. The deposit may consist of one lump sum or exchanging your current vehicle.
With this secured car loan, you will receive the car immediately and make fixed monthly repayments to pay off the debt. At the end of the loan term, you will own the car outright.
However, if you fall behind on payments during the loan term, the HP provider has the right to repossess your vehicle but this will always be a last resort.
You will not be able to privately sell your car until you have paid your final instalment and ending your agreement early may result in a penalty.
If you are having financial difficulty, you can consider part-exchanging your vehicle or refinancing the existing loan, although this might be more costly in the long run. You can read more on the Citizens Advice Bureau website.
What Is The Criteria For Applying?
To be eligible for car finance in the UK, the lenders we feature need applicants to meet the following:
- UK resident
- Over 18 years of age
- Valid debit or credit card to pay an initial deposit
- Valid debit account to make repayments
- Copy of Drivers License
Approval will be subject to a credit check carried out by a credit reference agency. This gives lenders an indication of your creditworthiness, debt-to- loan ratio and how well you have paid other forms of finance in the past. Every car finance provider has a different criteria with some able to offer deals for different levels of credit. Read more about bad credit car finance.
How To Apply For Car Finance
As a leading car finance broker, we regularly update our comparison tool to ensure our customers have access to the best car finance deals in the UK.
Start by using our calculator and deciding how much you need to borrow towards your chosen vehicle.
Compare the APR, loan term and payment examples of our car loan companies and then you can click through to their website where you can apply directly.
All the companies we feature have an online application which takes only a few minutes to complete and then you will receive an instant decision letting you know if you have been provisionally accepted.
You may be required to provide additional information, pay a deposit and sign an online loan agreement. If you are successful, the funds can be deposited on the same day and most of our lenders are able to transfer the money directly to the car dealership to reduce admin and save time.
What You Cannot Use Car Loans For
Vehicle finance should be used for vehicles only and should not be used for the following purposes:
- Business purposes
- Investments, including buying stocks and shares
- Purchasing property
- Pay off bambling debts
- Repay CCJs (county court judgments)
- Debt consolidation