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Car finance

Car finance loans are a type of loan designed to help you find credit for the car of your dreams.

I want to borrow:


Over how long?

Loans displayed from 4 companies with term lengths between a minimum 1 year and maximum 7 years with a maximum 29.8% APR. How our loans calculator works.

How our loans calculator works

Our loans comparison shows how much each loan is likely to cost per month and in total. The amount we show is based on these assumptions:

  • The representative APR is the interest rate you'll be given
  • The loan amount you entered is the exact amount you'll borrow
  • You won't make any late or early repayments
  • You won't fail to make any of your loan repayments
  • You won't repay the loan before the end of the term
  • You won't make any overpayments or underpayments

Our comparison shows how much each loan should cost you, but the amount could be different if the way you repay it varies from the above assumptions. The amount could also be different if the lender offers you a different interest rate to the APR.

Warning: Late repayments can cause you serious money problems. If you fall behind on your mortgage or debts secured against your home, it may be repossessed. For more information see our debt help guides.

uSwitch Limited is a credit broker, not a lender, for consumer credit products. Our services are provided at no cost to you, but we may receive a commission from the companies we refer you to. For some loans a broker fee of up to 12.5% may be added to the cost of the loan.

Our providers

1plus1 Loans
1st Stop
1st Stop Personal Loans
Aspire Money
Bamboo Loans
Central Trust Ltd
Fluent Loans
George Banco
Hitachi Capital (UK) PLC
Likely Loans
M&S Bank
Masthaven Bank Ltd
My Car Credit
Norton Home Loans
Optimum Credit Ltd
Paragon Bank PLC
Post Office
Prestige Finance Limited
Sainsbury's Bank
Shawbrook Bank Limited
Step One Finance Limited
Tesco Bank
TFS Loans
UK Credit Limited
United Trust Bank
West One Secured Loans Limited

About car finance loans in the UK

Owning a car is a huge financial commitment, but it's also a necessity for many of us who rely on our car to get to work, take children to school and do the shopping. A car finance loan is simply a way to spread the costs of that big purchase over time, making it more manageable and realistic. 

Why choose a car credit loan?

The main reason to consider a car credit loan is if paying the full amount for a car upfront will put you in financial difficulty. Car credit will always be costlier over the long-term than paying for your car upfront, but if paying in one go means you have to borrow for other reasons it may be worth considering car finance.

What's good about car finance?

Car finance is a secured loan. That means that if you fail to keep up your payments the lender may be entitled to repossess your vehicle. However, that also means that the lender has added security, so they can lend to you at a better rate.

What types of car credit are there?

There are a variety of car credit loans available. The main one is hire purchase which is fairly straightforward. Under hire purchase you pay an initial fee, then agree a series of monthly payments until the car is paid off. The longer the period you stagger your payments over the cheaper the monthly costs will be, but the greater the overall costs. 

A rarer form of car finance is known as personal contract purchase, or PCP, whereby you are given the option of buying the car at the end, or handing it back. If you choose to purchase at the end there will be a final 'balloon' payment which you agree at the beginning and relies on you estimating the value of the car in future. 

While PCP can seem like an attractive proposition you should think carefully about how the future value of your car is assessed. If your car is rated as costlier than the actual resale price you will end up overpaying on your loan. 

How do I know if a car finance loan is good value?

The main thing to look out for when comparing car finance is the APR, or ‘annual percentage rate’. The APR is the interest rate you will be charged for the loan including fees and charges have to pay, so it gives you a clear idea of the overall cost of the loan. The actual overall cost – so how much car finance will cost you over the lifetime of your loan – is also crucial to comparing different types of loan.