How do car loans work?
Financing a car works in two ways. You can either apply for finance with a registered car seller at the time you buy the car and then pay back the loan over an agreed period of time, or apply for a personal loan and receive the money before you shop for a vehicle of your choosing.
By paying for the car upfront with a personal car loan, you’ll own the vehicle outright and avoid paying for extras such as excess mileage charges over time, as you may have done should you lease 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. You can work out what your expected monthly repayments might look like by choosing a loan amount and term.