Applying for a car loan vs leasing
Applying for a car loan is essentially the same as applying for a personal loan.
There are other options to consider when it comes to taking on a loan to purchase a car. You could seek a PCP finance agreement with the dealer where you take on a loan via their provider. At the end of your agreement, you have the choice of handing the car back, buying it outright for the remainder of the loan, or swapping it for an even newer model.
You could also consider leasing a car, which may require an initial deposit. Leasing often has lower monthly repayments than a financing agreement, as you’ll only ever cover the depreciating value of the vehicle, rather than the whole cost. The difference is that an initial upfront payment is usually required to agree such terms.