Short-Term Car Finance

Short-term car finance calculator

Rates from 8.9% APR: the rate you will be offered will be based on your circumstances. Representative APR 22.4%.

Representative example: borrowing £7,000 over 5 years with a representative APR of 22.4%, the annual interest rate of 22.4% (Fixed) and a deposit of £0.00, the monthly instalment would be £194.93, with a total cost of credit of £4,695.66 and a total amount payable of £11,695.66.

Rates may differ as they are dependent on individual circumstances. Automotive Online Ltd is an authorised credit broker, not a lender and may receive a commission for introductions.

What is short-term car finance?

Short-term car finance is a car loan where you repay the amount owed over a shorter period of time. A short-term car loan typically last 3, 6, 9, and 12 months, however the length of agreements will vary depending on the lender.

The shortest term that our approved lenders offer is 12 months, which is still classed as a short-term loan. Short-term car finance is ideal for people who don’t want to be paying back a loan for multiple years in order to save money on the interest.

How does short-term car finance work?

A short-term car loan works exactly the same as any other finance agreement, the key difference is that the length of the contract is usually no longer than 12 months. This covers the cost of the vehicle and is repaid back to the lender, with interest payments, until the value of the loan has been repaid. Once the outstanding balance is paid, you become the outright owner of the vehicle.

Depending on the lender, you may be offered a personal loan in which case you would own the car from the beginning.

You can take out a short-term loan on both new and used cars.

12-month car finance

The minimum term for a short-term car finance agreement can very depending on the lender. While not all lenders offer short-term loans, At Quick Car Finance, we work with a range of approved partners who provide car loans with terms of 12 months.

The benefits of short-term car finance

There are many benefits to taking out a short-term loan opposed to a longer term loan.

Lower monthly payments

The main benefit of short-term car finance is that overall you’ll be paying less as you’ll be paying much less interest compared to if you took out a car loan that was 36 months. As these monthly payments are fixed it will also allow you to budget better.

Own the vehicle quicker

Another advantage is that after the loan is over, you will own the car outright at a quicker pace. This is advantageous as it means that you can choose to sell your vehicle or trade it in for a better model.

Wide range of models

We work with a range of lenders that could help you find a finance deal on a number of household names such as Audi, BMW and Mercedes. We work with any reputable garage across the country and provide free history checks as part of our service.

Things to consider for short-term car finance

Before you take out a short-term car loan, there are a couple of key factors that you need to consider.

Larger down payment

Due to the repayment period being shorter, your loan will have higher monthly payments and will likely also require a larger down payment.

Dependent on your credit score

Another thing to take into consideration when applying for a 12 month loan is that its usually only available to people with a good credit rating. If you don’t have a strong credit history, you might want to consider our poor credit car finance options.

Why choose Quick Car Finance for hire purchase finance

At Quick Car Finance, we compare over 48 different car finance deals to help you find the most competitive rates for your dream car. We work with a number of leading car finance providers and have cross-checked dealers across the country to ensure that their prices are fair, competitive and transparent.

We compare all kinds of vehicle finance, including hire purchase, which we recommend as a viable way to purchase a new car.

Our entire online car finance application is free to use and will provide you with a list of competitive rates and quotes. Once approved and all final checks have been made, we will transfer your funds to the dealer and you can be on the road with your new car within 24 to 48 hours.

Short-term car finance FAQ

When deciding if it’s better to take out a short-term car loan or not will depend entirely on your own circumstances. For some people who are looking to finance a car, a short-term finance agreement may be a preferable option due to having to pay less interest.

While the agreed term for a short-term car finance contract can be as short as 3 months, the shortest loan term length our approved lenders are able to provide is 12 months.

Apply for short-term car finance today!

We work with a range of approved partners and lenders to help find the best short-term car finance deal for you.

To work out your eligibility and affordability for short-term car finance, you can use our dedicated free car finance calculator. We use a soft credit check so you can see if you qualify, without impacting your credit score. Our lenders may only carry out a hard search should you wish to proceed.