Money Outlet

There are many reasons you may need a car loan. Perhaps your old car is simply breaking down too often to constantly repair and it would make more economical sense to simply buy a new car, or perhaps a newer used car? If you find yourself needing a car loan and would like to compare rates and lenders to ensure you get the best deal then MoneyOutlet can help you.

Compare hundred of cheap personal and secured homeowner loans to find your low rate car loan quickly. It takes less than 2 minutes to apply for your free, no obligation quote. Apply Now!

What type of Car Loan should I choose?

Like most types of loans in the UK, car loans also fit into two main categories: personal car loans and secured car loans. Below you’ll find information on both to help you make a more informed decision when choosing the type of car finance you need.

Personal Car Loan: A personal loan is an ‘unsecured’ product which means you are not required to produce any type of collateral, such as your home, in order to receive this type of car loan.

Advantages to Personal Car Loans

• No security required, such as your home or property
• Borrow from £1,000 to £25,000
• Generally lower rates than car financing at the dealerships

Disadvantages to Personal Car Loans

• Maximum you can borrow is £25,000
• Repayment period usually from 1 to 5 years
• Most lenders only offer this type of loan to people with good or excellent credit

While the typical maximum you may borrow for a personal loan is £25,000, this is often the most popular loan choice as you are not required to supply any security. However, if you have bad credit and need a loan, you may find the majority of UK lenders turning you down for a car loan.

Secured Car Loan: A secured loan, also known as a home owner loan, which is granted to a homeowner based on their home or property used as security.

Advantages to Secured Car Loans

• Greater chance of approval for a loan
• Able to borrow up to £100,000, or more, depending on the equity in your home
• Typically lower rates than personal loans
• Loan terms usually from 5 to 25 years, or more
• More choice of bad credit loans if you suffer from a poor credit history

Disadvantages to Secured Car Loans

• You must be a homeowner to apply for this type of loan
• Your home is used as security
• May take longer to obtain the loan compared to a personal loan

Whichever loan type you choose it is recommended that you obtain finance before you purchase your vehicle. Depending on the lender you may need to know exactly which vehicle(s) you are interested in to give them an idea of how much they’ll lend you.

Generally, most people seeking car finance do not need more than £25,000 therefore a personal loan is often times the favoured choice. However, please keep in mind that rates available, especially those you see on television or in print, are what you can expect if you have excellent credit. Many lenders who offer personal loans for cars most often reject applications if you have an adverse credit history or if they do accept your application, you must discuss with them the typical APR (Annual Percentage Rate) they offer with their loan product.

Whether you’re looking for a personal car loan or a secured car loan, have excellent to bad credit, or would simply like to compare the whole market to find the best deal in minutes, we can save you valuable time and money now.

Here at the MoneyOutlet we work with a vast network of UK loan brokers and lenders offering car loans to all UK residents. Whether you have poor credit, CCJ’s, mortgage arrears or filed for bankruptcy or an IVA, we can help. Simply fill in your requirements in the form above and we’ll immediately begin searching 100’s of low rate loans based on your needs. You’ll receive a free, no obligation quote without a credit check (important!). It only takes 2 minutes to apply.

Why not see how we can help you today? Use www.moneyoutlet.co.uk to search and compare online and help find you the best available debt consolidation loan in today’s competitive market. Apply Now!