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It’s important to compare car finance loans

We compare deals from UK lenders to find you the best rates for car finance. We accept bad credit applications and have lenders experienced in delivering subprime car loans.

Buying a new or used vehicle can be a fun process. You get to compare a variety of vehicles to find the best option. Unfortunately, most people do not spend as much time comparing vehicle finance options.

Taking the time to compare loans helps you find lower interest rates and avoid unnecessary fees. You may also find adverse credit car finance solutions for those with bad credit.

Before applying for car financing, you should explore your options. Find out how car financing works to save money on the purchase of your next vehicle.

Ensure that you get the best deal on car loans

If you want to know how to get the best car finance deals, there are a few factors to consider, including:

  • Your credit history
  • The amount you need to borrow
  • The amount you can afford to pay each month
  • Interest rates and additional charges
  • The type of car finance

There are hundreds of lenders that offer personal loans for vehicles. If you want the best deal, you need to compare options. Lenders may offer different interest rates and include various charges or fees, such as early termination fees. You should also consider using a finance calculator.

Based on the interest rate, the loan term, and the amount of the loan, you can estimate the monthly payments. This may give you a better indication of what you can afford.

How car finance works

The most common way to finance the purchase of a vehicle is to obtain a personal loan. These loans are typically unsecured, which means that you do not need to use something of value as collateral. When applying for a car loan, most lenders perform a series of checks to evaluate the risk of approving the loan.

These checks include a detailed credit history check. Lenders want to determine if there is a risk of you not making your payments. If you have a lot of outstanding debt or delinquent payments, you are considered a greater risk. A personal loan is not the only way to finance the purchase of used or new cars.

Along with personal loans, you may consider using a credit card or obtaining a lease. However, there are drawbacks to both options. Credit cards often have much higher interest rates compared to personal loans. While you may find a credit card with a 0% introductory offer, you need to pay off the entire amount of the loan before the offer ends to avoid paying higher interest rates. Leasing a car is another option.

However, it often includes strict conditions for the mileage and usage of the vehicle. You do not need to deal with these hassles when you obtain a personal loan. Obtaining a loan also provides the option of paying off your car loan early. By making extra payments or increasing the amount of each monthly payment, you reduce the total interest paid over the life of the loan.

Financing a vehicle with bad credit

Your credit history may stand in the way of getting personal loans for cars. Luckily, there are ways to get financing even with bad credit. When you apply for a loan from a car finance company, they will likely examine your credit history. If you have a low credit score, you may not get the advertised interest rate.

In some cases, you may even get turned down for the loan. If you want to obtain financing with no credit checks, you may need to consider applying for a secured loan.

A secured loan is secured on something of value, such as your home or another vehicle. It reduces the lender’s risk of approving the loan and offers a way for those with bad credit to get financing.

Another option is to have someone with better credit co-sign on the loan. You and the co-signer share responsibility for paying off the loan, which can limit the risk to the lender and help you secure financing.

How to best finance your car

In the end, financing is available to almost everyone, including those who need bad-credit car financing solutions. For most car buyers, a personal loan offers the best financing solution.

If you are currently searching for new or used cars and require financing, the next step is to compare interest rates to get the best deal on a personal car loan. Use an online credit broker to compare the lowest rates from the top lenders.