How does financing a car work?
Financing a car works in two ways. You can apply for finance with a registered car seller at the time you buy the vehicle and then pay back the loan over an agreed period.
Alternatively, you can apply for a personal loan and receive the money before you shop for a vehicle of your choosing.
By financing a car upfront with a personal loan, you’ll own the vehicle outright. You’ll avoid paying for extras such as excess mileage charges over time, as you may have done if leasing the vehicle from a garage.
However, the monthly payments on your personal car loan could be higher than some other options. So you should be sure you can afford to cover the monthly repayments before you apply.
Our loan calculator is here to help work out if you can get finance for a car. You can work out what your expected monthly repayments might look like by choosing a loan amount and term.