Car loans in the UK are generally classed as unsecured loans but
may be available on more favourable terms.
In the case of unsecured 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
usually relies on you having a good credit history and being a good
credit risk. Most lenders 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 loan earlier than agreed, and you should check each lender’s individual policy with regards to this.
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 loans to buy a car in the UK click on any of the
links on the left hand side for specialist car loan providers
Secured Loans Unsecured Loans Car Loans About Loans
