Car Loans

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  • No deposit options
  • No arrangement fees†
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  • Good, bad and poor credit considered
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What types of car loans are available in the UK?

Car loans generally come in three different types:
Gold car in front of Westminster

Hire Purchase

A Hire Purchase agreement, or HP, is where you borrow a sum of money over a set period of time from a finance company (lender), to buy a vehicle. To apply for HP, you have to pass a credit check first but, if you have bad credit, this doesn’t necessarily mean you won’t be able to get a car on HP. You will pay monthly installments back to the lender until the term is completed and the loan is paid in full. Once you have completed the installments you will then own the vehicle. HP is one of the most popular types of finance as it is more affordable in the long run as it does not incur having to pay a GMFV (Guaranteed Minimum Future Value) at the end of the finance agreement.

Unsecured Personal Loan

An unsecured personal car loan also involves loaning a sum of money from a finance company (lender). This is different to a HP agreement, however, as you can spend the money you have borrowed on whatever you want. If you were to use the funds to buy a vehicle, you would be the owner straight away.

Blue Mazda in front of the Millenium bridge
Blue Mini Cooper in front of London City Hall

Personal Contract Purchase

Personal Contract Purchase (PCP), is similar to a Hire Purchase agreement. However, the main difference is the value of the car once the contract has ended. Lenders calculate this at the start of the agreement and call it the Guaranteed Minimum Future Value (GMFV), or balloon payment. They work this out by taking into account how old the vehicle will be at the end of the agreement and how many miles it’s estimated to have done. Because you pay the GMFV at the end of the agreement, this means that your regular monthly payments are lower than those on a HP agreement over the same term.

The great thing about PCP is that you get to decide if you’d like to own the car at the end of the agreement by paying the GMFV. Alternatively, you can return the car to the lender and enter a new car finance agreement - whichever you prefer.

How do I get the best deals on UK car loans?

Quick Car Finance works with the most reputable car lenders in the UK and our customers have access to over 48 different tiers of car loans and finance when they apply. You can start by telling us the amount you would like to borrow and how long for. We then search the whole of the market to provide you with a list of instant quotes. Set up in 2017, we are passionate about transparency and will always show you the lowest prices for car loans possible which are based on your credit status and affordability. We cross-check everything along the way, including the car loans providers, the vehicle, and the dealership to ensure there are no overcharging or other issues along the way.

How do car loans work with Quick Car Finance?

Car loans allows you to purchase your dream car and choose a flexible payment option – which may involve paying a deposit, monthly payments, and the option to own the vehicle outright. Once you have asked for a quote and found the right deal for you, there will be some final checks carried out. When you are fully approved, the funds are transferred to the car dealer of your choice (or one we recommend) and they will be able to complete your car purchase within 24 to 48 hours. We have personally approved a list of car dealerships across the UK and can confirm which ones have passed our rigorous checks of being honest, fair, and affordable. This means that you can purchase any car of your choice in the safest way possible, including Audi, BMW, Mercedes, Ford, VW, Toyota, or any other brand.

Car Loans FAQ

You can check your eligibility in less than 5 minutes – you can get a quote by entering a few details in our calculator and we will provide you with a list of car finance options and pair you with the right lender.

We require a few basic details to provide you with a competitive car loan quote, including:

  • Your budget
  • Your credit status
  • Type of vehicle
  • Type of driver’s license
  • Employment details
  • Monthly income
  • Address

Yes, if you are self-employed, this will not impact your ability to access a car loan – and you will be treated the same as every other customer. You will be provided to show proof of income and affordability further along the application.

Yes, we are willing to take a view on all credit histories and this includes car loans for people with bad credit.

Every customer is put into a category based on their credit status and affordability and you are guaranteed the best price possible – and not an over-inflated price from a broker or dealership.

You will typically require a 10% deposit for a car loan, for products like Personal Contract Purchase (PCP) and Hire Purchase (HP).

We also have no deposit car loan options available where you do not need to make a deposit at all. This may require you to part exchange your existing vehicle or the cost is reflected in your fixed monthly repayments.

Yes, our car loan companies and car dealers are usually willing to take a view on part exchange. So if you are looking to trade in your existing car, you may be able to use this to pay for either full or part of your deposit for a new vehicle – and lower the price of future monthly payments.

Quick Car Finance provides instant quotes when you compare car loans and if you wish to continue, the final checks are usually completed on the same day.

The funds are transferred to the car dealer of your choice usually within 24 to 48 hours.

Our entire car loan application process is completed online and requires just a few quick questions to determine your budget and affordability.

You will get a list of instant car loan quotes on the screen and can proceed with the deal of your choice.

There are no fees for applying and it will not impact your credit score. Simply click on ‘get a quote’ to get started today.

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