How UK Car Finance
Works
Compare finance options from trusted UK lenders and see what your next car could look like.
Quick decision Buy from any reputable dealer No broker fees
Quick decision Buy from any reputable dealer No broker feesCar Loans UK is a credit broker, not a lender. Rates from 10.9% APR. Representative 21.6% APR (fixed).
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.
So How Does Car Finance Work?
Car finance lets you spread the cost of a car instead of paying the full price upfront. With Car Loans UK, you apply through a car finance broker that compares a panel of lenders for you, starting with a soft search that does not affect your credit score. The lender will only carry out a hard search if you choose to proceed. We are FCA-authorised, work with a specific lender panel, and you can buy from any reputable dealer. See the links below to specific products:
QUICK AND SIMPLE FINANCE TOOL
USE OUR FINANCE
CALCULATOR
Discover how much you could borrow
before you apply
Car Loans UK is a credit broker, not a lender. Rates from 10.9% APR. Representative 21.6% APR (fixed).
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.
What is car finance?
Most car finance deals include a deposit, fixed monthly payments, a set term, and interest shown as APR. What happens at the end depends on the product you choose.
The right option depends on whether you want the lowest monthly payment, the simplest route to ownership, or more flexibility at the end. If you are not sure, a broker can help you compare the main routes before you commit.
Types of car finance explained
Hire Purchase (HP) is straightforward. You pay a deposit, then fixed monthly payments, and you usually own the car after the last payment and a small option-to-purchase fee. Learn more about HP car finance.
Personal Contract Purchase (PCP) usually has lower monthly payments because you are mainly paying for the car’s expected depreciation. At the end, you can usually return the car, trade it in, or pay a final balloon payment to keep it. Read our PCP guide.
Conditional Sale (CS) works a lot like HP, but ownership normally passes automatically after the final payment, with no option-to-purchase fee. See Conditional Sale car finance.
What affects your monthly payment?
Your monthly payment is shaped by four main things: the car price, your deposit, the agreement length, and the APR. A bigger deposit can reduce what you borrow. A longer term can lower the monthly payment, but it can also increase the total amount repaid.
Example repayment: borrow £6,000 with £0 deposit over 60 months at a 21.6% representative APR (fixed), and the monthly payment would be £157.92 with a final option to purchase fee of £10. Total cost of credit £3,485.20. Total amount payable: £9,485.20. Example only.
Why choose Car Loans UK?
Car Loans UK is a credit broker, not a lender. We are authorised and regulated by the FCA under FRN 928674, work with a specific panel of lenders, and do not charge a broker fee. Check your eligibility or call 0330 202 1201.
CAR LOANS UK: HOW DOES IT WORK?
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.
FAQs
If you have any further questions about car finance, our friendly team is here to help. Speak to an expert today for free support and guidance.
CONTACT USOur Blog
