Car loans and finance
Affordability is a large aspect of choosing your car - but it needn't prevent you from buying the right car for you.
By providing a few simple details, you can find a finance option which enables you to buy the car you want, at a repayment rate that you can afford.
Compare rates from leading finance providers, including:
plus many more...
Financing your car
Do you know your credit rating?
When applying for finance, entering incorrect credit information can affect your application and being declined affects how future lenders view you, so knowing your credit rating is crucial in securing a great finance option. A free credit check allows you to view your credit history and highlights potential inaccuracies or fraudulent activity, advising you on ways to improve your credit rating, if poor.
What's an unsecured personal loan?
Unsecured loans are available for up to £25,000 and are un-tied to any guarantees, meaning less risk for you. Auto Trader compares over 200 loan rates to find you the lowest interest rates, enabling you to borrow money to buy a car and pay off the loan in fixed monthly repayments, risk-free. Knowing your credit rating beforehand helps obtain the best unsecured loan for you.
Compare unsecured loans
What's a secured personal loan?
Secured personal loans enable you to borrow larger sums of money - generally for over £20,000 - by securing them against an asset such as your home or car. This gives the lender more confidence in lending you money and increases your chances of getting the loan. If you're thinking of buying a new car, you can secure a loan against the car you wish to buy with low interest fixed monthly repayments over a fixed period of time.
Compare secured loans
How about buying with a credit card?
If you want to buy a car within the range of £500 - £3,000, getting a credit card is another way of borrowing money to make a quick and hassle-free purchase. In the same way that ordinary loans work, you make monthly repayments to pay back the borrowed money. Auto Trader finds credit card offerings with 0% purchase offers, helping you buy a car on a repayment plan that meets your needs.
Find a credit card offer
Frequently asked questions
- What makes a 'good' credit rating?
- What makes a 'bad' credit rating?
- How does my credit rating affect my loan?
- Do I qualify for a car loan?
How can I find the right finance for me?
With several types of car loans to choose from, knowing which one is right for you can be difficult. That's why Auto Trader has teamed up with Money Expert to compare over 200 loans and do the hard work for you.
You start by answering a few simple questions, based on which, our comparator tool automatically compares over 200 loans to find a finance option that suits your needs.
Knowing your credit rating before submitting your answers helps us match the correct finance option to you. Entering the incorrect information regarding your credit rating can affect the finance option you're offered.
A good credit rating gives lenders confidence in you as a borrower, providing you with access to better loan rates. The following factors contribute to a 'good' credit rating:
- Making early repayments
- Not missing payments
- Settling outstanding debts in full
- Being on the electoral roll
- Keeping creditors up to date with your address and telephone number
A bad credit rating can make it more difficult to access good loan rates, but doesn't necessarily mean no lenders will be prepared to loan you money. The following factors contribute to a bad credit rating:
- Repeat applications and repeat rejections
- Missing payments
- Defaulting on a payment
- CCJ's (County Court Judgements)
Your credit rating affects your loan application from the initial enquiry stages though to the application process. For example, when asked to provide your credit rating, entering the incorrect information can affect the finance option you're offered, which is why getting a credit check before applying helps obtain the best finance option for you.
Lenders use your credit rating to ascertain how reliable you are to borrow money. A good credit rating goes a long way to secure a loan, and a bad credit rating can deter lenders from accepting your application.
However, all sorts of factors can affect your credit rating, including ones that are unrelated to your personal financial history. No credit history at all can have a negative impact on your rating. Being declined credit and making several reapplications thereafter also deters lenders from accepting your loan application, so getting a credit check beforehand is highly recommended.
When you apply for a loan, the lender builds a credit rating around your application to ascertain whether you are a reliable borrower. This involves examining your past and present credit commitments, and how well you have met them.
From this analysis, lenders compile a number which represents the quantifiable risk you present in being loaned money. If your score meets or exceeds this number, you should be offered the loan.