Car loans in the UK are generally classed as unsecured loans but
may be available on more favourable terms than a normal unsecured loan.
In the case of loans for a car, the lender will generally
take a charge on your car until the debt is repayed. Like other
personal loans in the UK, getting a
Car Loan from an organisation like Welcome Car Credit
usually relies on you having a good credit history and being a good
credit risk. Most UK loan providers will use the services of a credit
agency such as Equifax to check this.
You can get loans for new and used cars for up to around £25,000, although
this will depend on your personal circumstances. Repayments are usually monthly and can be for anything from a year to five or more years. You may be charged a penalty if you repay your car loan earlier than agreed, and you should check each lender’s individual policy with regards to this. So, when you decide the term, think about whether you will still want to be paying off the loan if you change your car after say, a couple of years. You might be better taking out a shorter term
Car Loan even though the repayments will be higher
UK Lenders charge interest on the amount you borrow, which is referred to as the Annual Percentage Rate (A.P.R).
Unlike secured loans, unsecured loans are generally offered on a
fixed APR, although the rate may vary according to the amount you
want to borrow
To find out more about UK car loans click on any of the
links on the left hand side for specialist car loan providers. You will find that some of them have showrooms and sell your old car too as part of the deal. For example,
Welcome Car Credit will offer you up to one thousand pounds for your old car. There is also a link to Carwatch, a service we recommend highly if you are looking to buy a second hand car in the UK, whether you need a
Car Loan or not. It provides checks to ensure the car you are buying is not stolen for instance. Find out more by clicking on the carwatch link on the left hand side
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