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Car Finance Guide
Car Finance and Car Loan Guide
Car Finance – Online, UK, Low Rate, Unsecured, Cheap, Bad Credit, Car Loan, HP, PCP, Car Finance Guide
As the global auto industry is in turmoil, now may be the perfect time to snap up a great Car loan rate on a new or used car. News is spreading of a massive downturn in sales, and car dealers are desperate to move the cars off the plot.
There are thousands of options to choose from and you need to consider the manufacturer, the model and the car type that is best suited to your individual circumstances and objectives. Finding the right car may take months of walking around car lots, flicking through the newspaper and searching the web, so it’s important that you put as much effort into considering what is the best car loan for you so that you obtain the best car loan rate and save as much money as possible.
Whether you are looking for a low rate car loan or a bad credit car loan our car loan calculator will help you find the best car loan rate and cheapest car loan for you. Whilst you may find now is a great time to grab a great bargain you may also find that the car loan finance options have dried up. If you have been turned down for car finance our refused credit tool help you find a no credit car loan, bad credit car loan or poor credit car loan.
Hire Purchase, HP, agreementsare still the most common type of car loans taken out in the UK today. There are a limited number of 0% APR deals out there for some new car purchases but most will require a hefty deposit. Few people will qualify for these car credit loans and even if you do, you may be required to clear the balance within a couple of years, meaning unrealistic, unaffordable, massive monthly payments. The average asking price of a new car is currently £23,279. To repay this over two years interest free would mean monthly payments of £969, more than most of us want to or can afford to spend. Also with a Hire Purchase, HP agreement, you are technically hiring the car until the final payment has been made. With that in mind, if you don’t keep up the repayments the car can be repossessed. Use our car loan calculator to compare the price of cheap car loans against any hire purchase offers that are on the market. Even if you are looking for a poor credit car loan or to refinance a car loan our car loan calculator will help you find the cheapest car loan interest rate.
Personal Contract Purchase, PCP, is another popular type of car finance but again you don’t actually own the car until you have made all of the payments. With PCP you may find that you are able to make lower monthly payments but crucially you will have to make a deferred balloon payment, which may be as large as a third of the cars value, before the car is actually yours. That means make the payment, hand the car back or swap the car and start the car finance all over again! If you have the option then 0% finance is always going to be the preference but remember, even when there is no 0% option available the dealer may make HP or PCP sound an attractive car loan option but that’s because they are paid commission to sell the finance. Our car loan calculator will help you find low rate car loans and the best car loan interest rate for your credit profile.
Unsecured car loans are available to homeowners and tenants. The benefit of an unsecured car loan is that you can go to the car dealer, garage or private seller as a cash buyer, and negotiate a substantial reduction in the price. You may be offered a bank car loan but you shouldn’t assume that this is going to be the best car loan rate for you. Most unsecured loans can be used to purchase a car so always use the car loan calculator to compare the market for car loans in the UK.
What to do
Decide what your priority is and how long you are likely to keep the car for. You don’t want to be paying for the car finance after you’ve sold it so if you are only going to keep the car for three years dont take the car finance out over five years. Set yourself a budget that you will be able to stick to for the duration of the car finance, search the market using our car loan calculatorand look at how much you will pay over the full term of the loan.
Source www.motoring.co.uk
Not found what you are looking for?
- compare personal loans and search the market online for the best low rate unsecured personal loans
- search the whole of the market online and compare secured homeowner loans using our secured loan calculator
- compare bad credit personal loans online to get the best bad credit loan rate
- struggling to get credit and have been turned down for a loan use our free refused credit tool
- Find popular loan companies
- Debt problems? Get debt help, with debt consolidation loans, IVAs and Debt Management Plans
Dan Gale Moneyextra.com May 2009
Moneyextra.com recommends you take independent financial advice before acting on any article
Back2009-04-28 12:40:12 © Moneyextra.com
Loans - Top Picks
| Unsecured Loans |
| Barclays Bank - Existing Customer Barclayloan Plus Funded | ||||
Barclays Bank
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Monthly Payment |
Representative APR |
Rate Type |
Total Payable |
| £386.94 | 6.2% | Fixed | £23,216.38 | |
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Representative example: based on a loan of £20000 Representative APR 6.2% Fixed. Total amount repayable £23,216.38 at £386.94 per month for 60 months. |
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| Barclays Bank - Existing Customer Barclayloan Plus | ||||
|
Monthly Payment |
Representative APR |
Rate Type |
Total Payable |
| £410.87 | 8.9% | Fixed | £24,652.44 | |
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Representative example: based on a loan of £20000 Representative APR 8.9% Fixed. Total amount repayable £24,652.44 at £410.87 per month for 60 months. Find a cheaper offer and Barclays Will Pay the Difference |
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| HSBC - Existing Customer Personal Loan | ||||
|
Monthly Payment |
Representative APR |
Rate Type |
Total Payable |
| £419.82 | 9.9% | Fixed | £25,188.92 | |
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Representative example: based on a loan of £20000 Representative APR 9.9% Fixed. Total amount repayable £25,188.92 at £419.82 per month for 60 months. Find a cheaper offer and Barclays Will Pay the Difference |
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| Nationwide Building Society - Personal Loan | ||||
|
Monthly Payment |
Representative APR |
Rate Type |
Total Payable |
| £419.82 | 9.9% | Fixed | £25,188.92 | |
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Representative example: based on a loan of £20000 Representative APR 9.9% Fixed. Total amount repayable £25,188.92 at £419.82 per month for 60 months. Advertised rate for main FlexAccount customers only, other options available. |
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| Secured Loans |
| Norton Financial Services - Secured Loan | ||||
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Norton Financial Services
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Monthly Payment |
Representative APR |
Rate Type |
Total Payable |
| £419.82 | 9.9% | Variable | £25,188.92 | |
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Representative example: based on a loan of £20000 Representative APR 9.9% Variable. Total amount repayable £25,188.92 at £419.82 per month for 60 months. |
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| Willows Finance - Good Credit | ||||
|
Monthly Payment |
Representative APR |
Rate Type |
Total Payable |
| £419.82 | 9.9% | Variable | £25,188.92 | |
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Representative example: based on a loan of £20000 Representative APR 9.9% Variable. Total amount repayable £25,188.92 at £419.82 per month for 60 months. Low Rate, Cheap, Secured Homeowner Loan |
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| Nemo Personal Finance - Secured Loan | ||||
|
Monthly Payment |
Representative APR |
Rate Type |
Total Payable |
| £433.30 | 11.4% | Variable | £25,997.90 | |
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Representative example: based on a loan of £20000 Representative APR 11.4% Variable. Total amount repayable £25,997.90 at £433.30 per month for 60 months. Low Rate, Cheap, Secured Homeowner Loan |
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| Nemo Personal Finance - Secured Homeowner Loan | ||||
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Monthly Payment |
Representative APR |
Rate Type |
Total Payable |
| £451.40 | 13.4% | Variable | £27,083.81 | |
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Representative example: based on a loan of £20000 Representative APR 13.4% Variable. Total amount repayable £27,083.81 at £451.40 per month for 60 months. UK Secured Homeowner Loan |
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