How to get finance for your new car

We show you how to choose the right car finance package for you

We show you how to get a great loan in our indispensable guide to car finance.

Name your price

Firstly, it’s important to figure out just how much you’re looking to borrow. Find a car which is right for you and study your monthly incomings and outgoings to see if you’re happy to go ahead with a finance deal.

Take into account:

• The price of the car
• Your earnings
• How long you’d ideally like the loan for
• Your credit history

Be realistic. You’re more likely to be offered a better finance deal if your credit history is good, and your annual wage can comfortable pay off the loan in ten years or less.

Get the right finance deal for you

Visit the Auto Trader Car Loans and Finance centre to get a great loan individually suited to match your requirements. The search compares loans from a wide range of reliable lenders and banks to find the perfect deal for you.

Follow these simple steps to find your loan:

• Go to the Auto Trader Car Loans and Finance centre
• Enter your desired loan amount
• Choose the loan repayment period – this can be anything from one year to 45 years
• Tell us the purpose of the loan – in this case select ‘car’
• Specify your residential status. Are you a homeowner or a tenant?
• Describe your previous credit history by selecting from one of the three options

Buying from a dealer

Another option is to seek a finance deal straight from a car manufacturer. Some dealerships offer fantastic deals on new cars, so take the time to look around.

The advantages of taking this route are car warranties and low APR rates which dealers may offer on certain models. Dealers will often offer you a monthly repayment plan, known as a Hire Purchase Agreement (or HP).

For more help on buying from a car dealer, including an Auto Trader advice podcast, read our buying from a dealer feature.

Other finance deals

Secured Loans

As a homeowner, you’ll have access to lower interest rates.

You can consolidate your existing credit cards and financial commitments into one monthly payment to help finance your new car. You can compare homeowner loans to see how much you could save.

Refused credit loans

Even if you’ve been refused credit in the past you may still be legible for a car loan. Visit our refused credit enquiry page and you’ll receive a decision within an hour.

Finance FAQs

Q: How can I see my credit report?
A: Contact one of the major credit agencies who compile them – these include Equifax, Experian, Equilend and Call Credit. You should get one copy for free.

Q: I don’t know what APR or PPI means – where can I find out more technical information about loans?
A: Visit our A-Z of car loans page to get a better understanding of financial abbreviations and information.

Q: What happens if I’m made redundant or ill and can’t work?
A: Payment Protection Insurance (PPI) is a service offered by insurers which protects your debts should you have a sudden loss of income, due to illness or disability.