Car purchase loans are loans that are taken out with the purpose of owning the car at the end of the loan term. There are car loans available whereby you can defer payments until the end of the term, at which time you will either have to pay the difference, or sell the car, but with car purchase loans, the monthly payments cover the loan amount and the interest so that you will own the car when the loan term is up.

When looking to buy a car, you should shop around to find the best deal, making sure you read any small print attached to the policy so that you are not caught out by fees or early redemption charges.

Good car purchase loans should offer:

  • A low APR
  • A choice of borrowing – usually between £1,000 and £25,000
  • A choice of loan terms – usually between 2 and 8 years
  • Fixed monthly repayments
  • No fees or charges
  • Immediate transfer of funds

To compare all the leading car purchase loans on the market use our car loan calculator.

LenderMin - Max LoanCredit HistoryRepresentative APRTermApply
£1,500 - £50,000Good to Poor Credit19.1%2 to 5 YearsGet Quotes >
Take charge of your car finance with Zuto. Loans of £1,500 - £50,000 for 2-5 years. Representative Example: The Representative APR is 19.1% (fixed) so if you borrow £7,500 over 49 months at a rate of 19.1% p.a. (fixed) you will repay £218.78 per month and repay £10,501.26 in total. b>

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.