Let us help find the right car and repayment plan for you, from our panel of UK lenders.
Quick decision Buy from any reputable dealer No broker feesRepresentative Example (Hire Purchase): Borrow £6,000 with £0 deposit over 60 months with a representative 21.6% APR (fixed). 60 monthly payments of £157.92. Final Option to Purchase Fee: £10. Total cost of credit: £3,485.20. Total amount payable: £9,485.20. Car Loans UK is a credit broker, not a lender. This is an example only; all finance is subject to status. Lender fees may apply.
Working with lenders including:
A car finance broker is an expert middle‑man who matches you with a lender. Instead of going directly to a bank or dealer, you apply through a broker who compares loans from a panel of lenders using an initial soft credit check. Brokers do not lend money themselves; they act as intermediaries regulated by the Financial Conduct Authority (FCA). They must disclose that they are brokers, not lenders, and they receive a commission from the lender when you take out finance.
Using a broker can save you time. Instead of applying to individual lenders one by one (which could mean multiple hard searches on your credit file), a broker does the leg‑work and finds options suited to your circumstances. Brokers often have access to specialist lenders who serve people with bad credit, self‑employed income or benefits, making them a valuable option if you don’t meet mainstream lending criteria.
A step by step guide:
Our aim at Car Loans UK is to find you the perfect vehicle and finance plan. Our experienced consultants do the hard work,
saving you the time and effort. We will actively source you the ideal used car and finance package from our panel of lenders.
STEP 01 ⸺
FILL IN
DETAILS
Fill in your details using the form above or click here to begin the process.
STEP 02 ⸺
WE FIND YOUR
PERFECT CAR
We find you the perfect used car. Whether you have a specific make or model in mind, or just want a 5-door family car with air conditioning, our team will find the right car for your needs.
STEP 03 ⸺
SOURCE
FINANCE
We work with a panel of UK lenders to try and find you a finance agreement and payment plan that suits your budget. We carry out the relevant checks and keep you informed every step of the way.
So, let Car Loans UK take the strain of searching for a new car and finance plan away, and begin your journey today.
QUICK AND SIMPLE FINANCE TOOL
Discover how much you could borrow
before you apply
Representative Example (Hire Purchase): Borrow £6,000 with £0 deposit over 60 months with a representative 21.6% APR (fixed). 60 monthly payments of £157.92. Final Option to Purchase Fee: £10. Total cost of credit: £3,485.20. Total amount payable: £9,485.20. Car Loans UK is a credit broker, not a lender. This is an example only; all finance is subject to status. Lender fees may apply.
Different finance products suit different needs. Below are the main types we arrange. For in‑depth guides, follow the links to our dedicated pages.
With Hire Purchase you could pay a deposit and then fixed monthly payments to cover the entire cost of the car (plus interest). There is no large final payment; once you make the last instalment and a small option‑to‑purchase fee, you own the car outright. HP payments are usually higher than PCP because you are financing the whole vehicle value. Learn more in our HP car finance guide.
Personal Contract Purchase is popular because monthly payments are lower. You pay a deposit and then monthly installments that cover the car’s depreciation rather than its full value. At the end of the term you have three options: pay the guaranteed minimum future value (“balloon payment”) to own the car, return the car with nothing more to pay (subject to mileage and condition), or use any equity as a deposit on another car. Read more in our PCP car finance guide.
A Conditional Sale works like HP, but ownership transfers automatically after you make the final payment. There is no option‑to‑purchase fee. Monthly payments are fixed and you own the car at the end. This product may suit you if you want a straightforward route to ownership without a final fee. See our Conditional Sale car finance guide.
Some borrowers prefer an unsecured personal loan. You could borrow the full purchase price from a bank or building society and pay the dealer for the cost of the car in full. The loan isn’t secured on the car, so you'd own the vehicle from day one. Monthly payments depend on your credit score and the lender’s rate; competitive APRs range from about 6% to 11% for borrowers with good credit, but rates can rise above 20% for poor credit. We don’t broker unsecured loans, but we can discuss how they compare to HP or PCP.
The table below shows how the three main finance types compare.
Finance providers look at your overall financial picture. You usually need to be:
Aged 18 or over.
A UK resident for at least three years.
In regular employment or receiving a steady income. Lenders can consider benefits such as Universal Credit, PIP or DLA as income, but they also look at how sustainable your income is.
Holding a full UK driving licence.
Lenders check your credit history and monthly outgoings. A good credit score improves your chances, but specialist lenders may consider bad credit cases. If you have missed payments or a County Court Judgment (CCJ), you might pay a higher rate or need a larger deposit. For more guidance see our pages on bad credit car finance, no deposit car finance, car finance without a guarantor, self‑employed car finance and car finance while on benefits.
To illustrate how monthly payments differ, consider a £15,000 car with a 10% deposit and a 60‑month term. We’ll use a representative APR of 21.6%. In this example:
HP: You pay a £1,500 deposit and borrow £13,500 at 21.6% APR over 60 months. The monthly payment is around £369.79 and the total repayable is around £23,687.50, including the deposit.
PCP: You pay the same £1,500 deposit. If the car’s guaranteed minimum future value (GMFV) after five years is £6,000, the monthly payments are around £313.44 at 21.6% APR. If you want to own the car at the end, you pay the £6,000 balloon payment, bringing the total payable to around £26,306, including the deposit
Personal loan: Borrow the full £15,000 at a typical 21.6% APR over 60 months. The monthly payment is about £410.88, and you’d pay around £24,652.77 in total.
These figures are illustrative only; actual rates depend on your credit profile and the lender. A deposit reduces the amount you borrow, which in turn lowers monthly payments and total interest.
Representative Example (Hire Purchase): Borrow £6,000 with £0 deposit over 60 months with a representative 21.6% APR (fixed). 60 monthly payments of £157.92. Final Option to Purchase Fee: £10. Total cost of credit: £3,485.20. Total amount payable: £9,485.20. Car Loans UK is a credit broker, not a lender. This is an example only; all finance is subject to status. Lender fees may apply.
We’re a specialist broker with a large panel of lenders. Here’s why drivers choose us:
We compare offers from multiple lenders so you don’t have to. One soft search gives you access to a range of deals. Lenders compete for your business, which can lead to better rates.
Your initial application does not impact your credit score. Lenders will carry out a full search as your application progresses.
Our panel includes lenders who welcome self‑employed applicants, benefit income and less‑than‑perfect credit.
We are paid by the lender when a loan is arranged. You pay no broker fee, and our commission does not affect the rate you’re offered. This is a key difference between brokers and some dealers.
We are authorised and regulated by the Financial Conduct Authority (ref 928674). Our account managers are SAF (Specialist Automotive Finance) certified.
We follow the FCA’s ban on discretionary commission arrangements. We tell you exactly how we get paid and do not hide fees.
Historically, some brokers or dealers earned more commission by setting a higher interest rate. These “discretionary commission arrangements” were banned by the Financial Conduct Authority in January 2021. Before the ban, dealers could set the customer’s rate and earn a higher commission for charging a higher APR. The ban saved consumers an estimated £165 million and created a fairer marketplace.
We are proud to be transparent about how we earn. We’re a credit broker, not a lender. We never charge you a broker fee. If you take out finance through us, the lender pays us a fixed commission or a fixed percentage of the amount financed. The commission is the same regardless of the interest rate you accept and does not affect your rate. We do not have any discretionary commission arrangements. Read more in our commission disclosure and our initial disclosure document sets out the basis of our service.
If you have any further questions about car finance brokers, our friendly team is here to help. Speak to an expert today for free support and guidance.
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