The Post Office

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Where would you go to get a new car? The car supermarket? The Audi dealership? A car auction? Well now you can also go to the Post Office (postoffice.co.uk), thanks to the Post Office Car Loan. While you can’t actually drive a car away from the post office, or even choose a vehicle there, you can use them to apply for a loan enabling you to purchase a new or used car. With a typical APR of just 7.4% for loans between £7500 and £14,999 this is a cheap way of getting your dream car.

Buying a car with a loan makes a lot more sense than it did a few years ago. Interest rates have fallen so much that buying, even with credit, now makes a lot more sense than leasing. As you own the car too you don’t need to worry about giving it back to the leasing firm when your contract expires too.

The Post Office allows you to borrow between £2000 and £25,000 for a car, with interest rates pegged to how much you want to borrow. If you need less than £5000 then the rate is much higher at 14.9%, but is just 8.4% between £5000 and £7,499 and over £15,000, and at the low 7.4% between £7500 and £14,999.

You can even take repayment holidays twice a year, but need to define these in advance. Plus the car loan is available to those with low income, with a minimum annual income of just £8000. As long as you’ve got a good credit rating, are 21 or over, and have lived in the UK for the past three years you have a good chance of being accepted.

You can borrow the money for between one and seven years, allowing you to choose a monthly repayment figure that suits your budget. You can even choose which date you make repayments on, allowing you to time them in line with your salary payment.

82 Reviews of The Post Office have been submitted - read the latest 3 below

I think the Post Office loans service must be the retired persons best friend at the moment. I couldn't get a loan anywhere until I went to the Post Office. Just because we're retired doesn't mean we no longer need things like cars and thank goodness the Post Office seem to agree with me. I managed to get a very decent rate on this loan and I am currently in negotiations with the seller of the car I have had my eye on so I hope I do as well with the negotiations as I have done with this loan.

Review posted by Derek Earl, Kidderminster

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Although I've retired now I found I needed my car even more so. When it failed the MOT and the garage said it was not worth repairing I decided to get a loan to buy a newer and more reliable one. I was upset to say the least when my bank wouldn't give me a loan but a good friend told me about the Post Office doing very good loans and so I went on the internet and had a look for myself. I was able to see at a glance that I might be in with a chance of getting a loan even with my reduced income. For the slightly higher interest rates it would be worth it so I went ahead and applied. Two weeks later and here I am about to go off with my brother to buy myself another car and I would not be doing that without the marvellous loan I got from the Post Office. So thank you very much to the Post Office and to my good friend who gave me the recommendation in the first place.

Review posted by Mary Wright, West Sussex

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I put aside the higher interest rates I'll be paying with a Post Office loan and just focused on the bonuses that come with their loans. For a start I couldn't get this loan from my own bank because I am semi retired and on a reduced income. The Post Office didn't have a problem with that but my bank did. The Post Office also give you the option of twice yearly repayment holidays which are going to be so handy for me personally. I doubt very much I'd have got that option if my bank had decided to give me a loan. Thanks to the Post Office I can purchase a new car, my first for nearly 20 years and I couldn't be more satisfied with a loan if it had been delivered on a silver platter.

Review posted by Malcolm Rodgers, Cheltenham

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