Which car finance deal
is best for you?

How much do you want to borrow?

£

For how long?

months

You would like to borrow £3,000 over 24 months

The table below has been updated, with the cheapest lending option at the top.  Please use the Visit Site buttons to apply, or re-enter loan information for another comparison.

Has your car broken down and you need a way of getting to work and picking the kids up from school? Or are you simply in need of a newer vehicle to impress the boss, or something bigger to accommodate new family members? Taking out finance to purchase your next vehicle might be cheaper than you think, and could even save you money compared with other options such as leasing or taking advantage of dealer credit. Better still, car loans can be used for any vehicle – new or second hand, imported or domestic, diesel, petrol or even electric.

Is a loan better than a lease?

In recent years leasing a car has become an increasing popular option, with fixed monthly payments allowing you to jump into a brand new vehicle knowing that you can replace it with another new one in just a few short years. Vehicle leasing started in the corporate market, but has made its way over into the consumer market too and has made a big splash. However while it offers convenience, the financial fundamentals behind it aren’t in your favour. Vehicle leasing companies are making big profits by charging your more to rent your car than the vehicle is depreciating in value. Choosing a car finance deal instead, then selling your vehicle when you want to upgrade, will in most cases put you in a better financial position than leasing.

What about dealership loans?

Car dealers and manufacturers will often offer you a buy now pay later offer, where you are offered a brand new car on the never never. The deal might look good at first glance, but should you fail to pay off the balance in full it can often have high interest rates attached. For those that know they won’t have the money to make a full repayment, taking our a car loan is a cheaper way of buying the car. It also offers you more choice, and you won’t necessarily need to go for a new car. Depreciation can knock thousands off the value of a car on the first day of ownership, car finance will cover more savvy almost-new purchases while most manufacturer credit offers will not.

Are car loans just personal loans?

Many car loans are simply personal loans that are used to purchase cars, while others are dedicated loans for the purpose of buying a car specified in the loan application. Both are listed here. If you are looking to borrow for more than one purpose, for instance to buy a car and do home improvement, then a personal loan is a better choice. Car finance is more like a personal loans than a logbook loan, which are not used to finance the purchase of a vehicle and shouldn’t be confused with car loans.

Which car should I borrow money for?

Don’t over stretch your budget just because you are eligible for a larger loan. It’s better to make a smart purchasing decision and get a cheaper car that will allow you to pay back your loan quicker. Look for almost-new vehicles rather than brand new cars, as you’ll avoid the worst depreciation this way, and opt for makes and models that are known the depreciate slower so that when you change car you’ll have more value left in your vehicle.

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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

ProviderLoanRepayment: £3,000
over 24 months
Representative APRTermUser Reviews
MinMaxMinMax
Tesco Bank
£3,000
£25,000
£130.41
4.1%
12
Months
60
Months

Rated 4.3 / 5 by
by 164 users

Read Reviews

Representative Example:
Monthly repayments £180.72 Total amount payable £8,675 Loan amount £8,000 Representative APR 4.1% Length of agreement 4 years and 0 months

M & S Bank
£1,000
£15,000
£130.41
4.1%
12
Months
60
Months

Rated 4.4 / 5 by
by 116 users

Read Reviews

Representative Example:
To borrow £6,000 would cost you: £514.91 per month for the next 12 months. Representative 5.6% APR Based on an interest rate of 5.6% p.a. (fixed) Total amount payable £6,178.92

Hitachi Personal Finance
£2,500
£25,000
£130.41
4.1%
24
Months
60
Months

Rated 4.6 / 5 by
by 136 users

Read Reviews

Representative Example:
Cash price £7500. Deposit £0. Amount of credit £7500. 36 monthly repayments of £221.50. Total amount payable £7974.00. Interest rate 4.1% fixed. 4.1% APR Representative.

Cahoot
£1,000
£20,000
£130.54
4.2%
12
Months
60
Months

Rated 4.6 / 5 by
by 139 users

Read Reviews

Representative Example:
Borrow £10,000.00 over 5 years Representative 4.2% APR Interest rate 4.20% p.a. (Fixed) will cost £184.71 per month Total amount payable: £11,082.60

Santander
£1,000
£20,000
£130.68
4.3%
12
Months
60
Months

Rated 4.5 / 5 by
by 114 users

Read Reviews

Representative Example:
Monthly repayments £138.86 Total amount payable £8,331.60 Loan amount £7,500 Representative APR 4.3% Length of agreement 5 years and 0 months

The AA
£1,000
£25,000
£130.68
4.3%
12
Months
60
Months

Rated 4.5 / 5 by
by 170 users

Read Reviews

Representative Example:
£7,500 over 60 months at a fixed interest rate of 4.3% per annum would result in a representative APR of 4.3% APR monthly repayments of £138.86 and a total amount payable of £8,331.60

Sainsbury's Bank
£1,000
£25,000
£130.81
4.4%
12
Months
84
Months

Rated 4.5 / 5 by
by 91 users

Read Reviews

Representative Example:
Annual Interest Rate (fixed) is 4.40% p.a., with a representative 4.4% APR based on borrowing £10,000 and repaying over 60 months with 60 monthly repayments. Monthly repayments of £185.58 with total amount repayable of £11,134.80.

Yorkshire Bank
£1,000
£25,000
£131.48
4.9%
12
Months
60
Months

Rated 4.4 / 5 by
by 92 users

Read Reviews

Representative Example:
On an assumed loan amount of £7500 over 60 months Rate of interest - 4.9% per annum (fixed). Total amount of credit - £7,500 Representative 4.9% APR. Total amount payable - £8,459.14 59 monthly repayments of £140.99 and a final payment of £140.73

RateSetter
£1,000
£25,000
£131.48
4.9%
6
Months
60
Months

Rated 4.6 / 5 by
by 105 users

Read Reviews

Representative Example:
Loan amount of £7500 over 60 months. Rate of interest - 4.9% per annum (fixed). Total amount of credit - £7,500 Representative 4.9% APR. Total amount payable - £8,459.14 59 monthly repayments of £140.99 and a final payment of £140.73

Clydesdale Bank
£1,000
£25,000
£131.48
4.9%
12
Months
60
Months

Rated 4.4 / 5 by
by 88 users

Read Reviews

Representative Example:
n an assumed loan amount of £7500 over 60 months Rate of interest - 4.9% per annum (fixed). Total amount of credit - £7,500 Representative 4.9% APR. Total amount payable - £8,459.14 59 monthly repayments of £140.99 and a final payment of £140.73

Barclays
£1,000
£35,000
£131.48
4.9%
24
Months
60
Months

Rated 4.4 / 5 by
by 98 users

Read Reviews

Representative Example:
Borrow £8,000.00 over 5 years. Representative 4.9% APR Interest rate 4.90% p.a. (Fixed) will cost £150.73 per month Total amount payable: £9,043.69

Royal Bank of Scotland
£1,000
£25,000
£131.48
4.9%
12
Months
60
Months

Rated 4.5 / 5 by
by 78 users

Read Reviews

Representative Example:
Borrow £8,000.00 over 2 years Representative 4.9% APR Interest rate 4.90% p.a. (Fixed) will cost £350.22 per month Total amount payable: £8,405.28

Ulster Bank
£1,000
£25,000
£133.50
6.4%
12
Months
60
Months

Rated 4.5 / 5 by
by 80 users

Read Reviews

Representative Example:
Borrow £4,600.00 over 5 years Representative 11.9% APR Interest rate 11.9% p.a. (Fixed) will cost £100.70 per month Total amount payable: £6,042.00

NatWest
£1,000
£25,000
£133.50
6.4%
12
Months
60
Months

Rated 4.5 / 5 by
by 80 users

Read Reviews

Representative Example:
Borrow £7,500.00 over 5 years Representative 6.4% APR Interest rate 6.40% p.a. (Fixed) will cost £145.76 per month Total amount payable: £8,745.60

Lloyds Bank
£1,000
£25,000
£133.50
6.4%
12
Months
60
Months

Rated 4.6 / 5 by
by 84 users

Read Reviews

Representative Example:
6.4% APR Monthly repayments £202.73 for 60 months Total amount payable £12,163.80

The Post Office
£2,000
£25,000
£134.86
7.4%
12
Months
60
Months

Rated 4.6 / 5 by
by 82 users

Read Reviews

Representative Example:
7.4% APRAnnual Percentage Rate of charge – this shows the overall cost of borrowing, taking into account the term, interest rate and other costs.. Based on a loan amount of £7,500 over 48 months at an interest rate of 7.2% p.a. (fixed). Monthly repayment £180.22. Total amount payable £8,650.56.

Carloan 4U
£1,000
£25,000
£135.41
7.8%
12
Months
60
Months

Rated 4.6 / 5 by
by 144 users

Read Reviews

Representative Example:
Loan Amount: £7,500. 48 monthly repayments at: £181.46. Total cost of credit: £1,210.08 Total amount payable: £8,710.08. Representative APR: 7.8% APR Rate of interest (fixed pa) :4.2% pa Deposit amount: £0.00 Loan term: 48 months

Whilst we make every effort to ensure that the information is up to date, you should always confirm the terms of the offer with the product provider.



5 most recent car loan reviews

Review of Santander

My dad is going to be helping me buy my new car because I know nothing about them and just know what cars I like the look of. So I am letting him advise me. But I didn't need his advice about getting this loan to buy my new car because I always knew it was going to be with a loan from Santander. I've been banking with them since I left college 5 years ago and I have a 123 current account which I knew would mean a special lower rate on any loan I took out with them. I applied online for the loan but I had already been into my local branch and had a word with their loan adviser who was able to give me some quick figures off the top of their head with regards to what sort of rates they charge and I was more than happy so went straight home and applied. I am really pleased with my loan and can't wait to go shopping for my new car now.

Review posted by Lucy Rawlings, Kensal Rise

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Santander

Having a 123 current account with Santander Bank has helped me enormously to get such a great deal on this loan to buy a new car. I am very happy with the rate they are charging me and the fact that Santander were able to sort out this loan so quickly is a real indication of how well online banking can work for you. I have a very busy job and travel a lot so being able to snatch a spare couple of hours to apply for this loan and to get it approved and finalised the same day was ideal for me. I could get back to work knowing my loan was in place and that the money was there ready for me to start the search for my new car. Now I just need to find the time to do that!

Review posted by M. Bowers, Stevenage

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Santander

I don't think I know anyone that has been approved a loan for 15K and got the money into their bank account within under 24 hours. That has just happened with me and I am absolutely amazed at how fast Satander have sorted out this car finance loan for me. I think being a customer of theirs for the past 8 years and never having had any problems with my credit score must have helped me get this loan so quickly. My 123 current account and being able to do the whole thing online through my internet banking facility just made things even better. I reckon I am going to take longer sorting out my new car but it's great knowing I've already got the money to seal the deal once I find the right car. Thanks Santander Bank, you really are amazing at times.

Review posted by Colin Stevens, Islington

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Cahoot

Initially I was going to get my car finance loan from my own bank. I'd been looking at their rates for personal loans and thought they seemed pretty reasonable but I took a few months to finally getting around to applying for my loan and to my dismay their rates weren't looking quite so good anymore. So I went back to the drawing board as they say and eventually ended up with this fantastic loan from Cahoot who are the online division of Santander Bank for those of you that didn't know. Cahoot have turned out to be a bit of dark horse because i hadn't even considered them to be in the running when I first started looking at car finance loans. But they have offered me a really competitive rate for this loan with a convenient and affordable repayment plan so I really couldn't ask for more and I'm very pleased with how things have turned out.

Review posted by Rachel H., Finsbury Park

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Cahoot

I really will have to stop referring to Cahoot as Carhoot as it's no longer funny according to my friends who I have been boring to tears with my news about my fantastic car finance loan. But on a serious note, this car finance loan from Cahoot really is worth bragging about because i don't think I would have got a better deal anywhere. I did loads of online research before going with Cahoot and I am 99.9% sure I have got myself the best car finance loan possible. Maybe if I banked with Santander they might have been able to reduce the APR slightly but to be honest I am more than happy with what they are charging me and so when I get my new car I shall hoot my car horn with sheer delight. Sorry, I couldn't resist that final pun!

Review posted by Theresa Morgan, Dartford

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money


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