Car Loans | Bad Credit Car Finance With Low Deposit page
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  • Loan Amount
    £2000 - £40000
  • Loan term
    12 - 84 Months
  • Interest
    25.4%
  • APR
    25.4%
Representative example: borrowing £7,500 over 4 years with a representative APR of 25.4%, an annual interest rate of 25.4% (Fixed) and a deposit of £0.00, the amount payable would be £239.77 per month, with a total cost of credit of £4,008.96 and a total amount payable of £11,508.96 Car Finance 247
  • Pre-checked supplier dealerships
  • Works with a long list of lenders
  • Also provides facilitation in acquiring personal or guarantor loans
  • Loan Amount
    £250 - £1000
  • Loan term
    18 - 18 Months
  • Interest
    205.2%
  • APR
    989.9%
Representative example: If you borrow £400 over 18 months at a flat rate of 205.2% per annum (fixed) with a representative 989.9% APR you will make 18 monthly payments of £90.62, repaying £1,631.16 in total. Simple Fast Loans
  • Logbook loans allow borrowers to procure large sums of up to £50,000
  • Logbook loans can be taken out for cars older than 30 years
  • No setup charges
  • Paid on the same day
  • A long history of providing credit services
  • Allows early repayments
  • Loans are offered even to those with a poor credit history
  • It is a direct lender
  • Loan Amount
    £100 - £400
  • Loan term
    5 - 8 Months
  • Interest
    102.4%
  • APR
    466.37%
Representative Example: £200 loan repayable over 34 weeks at £10 per week, Rate of interest 107.1% p.a fixed; Representative 466.37% APR, Total amount payable is £340 Morses Club
  • An easy application process
  • Quick decision
  • No restrictions on spending
  • Loan Amount
    £125 - £500
  • Loan term
    2 - 3 Months
  • Interest
    292%
  • APR
    1306.21%
£200 loan taken out over 3 Months (83 days). Annual rate of interest 292% fixed. Cost of credit £113.08. Monthly Payments: £104.36, £104.36 and £104.36. Total amount payable: £313.08 THL Direct
  • Loan Amount
    £100 - £1000
  • Loan term
    7 - 5 Months
  • Interest
    292%
  • APR
    1270%
Representative example: Amount of credit £250 for 30 days. Total amount payable £310. Interest rate 292% (fixed). Interest £60 Piggy Bank
  • Gold Trusted Service on independent rating site Feefo
  • Completely online service
  • Flexible repayments periods of between 7 days and 5 months
  • Part payments accepted during the loan term
  • Loan Amount
    £250 - £250
  • Loan term
    1 - 4 Months
  • Interest
    0%
  • APR
    87.4%
Representative example: Total amount of credit of £500 over 12 months. 8 monthly repayments of £62.50 and 12 monthly membership payments of £6. Rate of interest 0% p.a. (fixed). Representative 87.4% APR. Total amount payable £572. CreditSpring – £250
  • Borrow £250 twice a year, available on demand
  • Membership fee is £6 per month (£72 a year)
  • Repay each advance in 4 monthly payments
  • 0% interest rate, you pay back only what you’ve borrowed, plus your monthly membership fee
  • Loan Amount
    £500 - £500
  • Loan term
    1 - 4 Months
  • Interest
    0%
  • APR
    38.6%
Representative example: Total amount of credit of £1,000 over 12 months. The first payment for each advance is £83.35 followed by 5 monthly repayments of £83.33. 12 monthly membership payments of £8. Rate of interest 0% p.a. (fixed), Representative 38.6% APR. Total amount payable £1,096. Creditspring – £500
  • Borrow £500 twice a year, available on demand
  • 0% interest rate, only pay back what you borrow plus your monthly membership fee
  • 14 days to change your mind before you can borrow. Then you'll be able to borrow whenever you need it
  • Loan Amount
    £100 - £1000
  • Loan term
    1 - 12 Months
  • Interest
    229.95%
  • APR
    720%
Borrow £400 for 6 months. Total repayment £707.01 in 6 monthly payments of £117.83. Interest p.a 229,95% (fixed). Representative 720% APR. Peachy Loans
  • Flexible repayment options from 1 - 12 months
  • Loans usually deposited within 1 hour
  • Loan Amount
    £1000 - £15000
  • Loan term
    48 - 60 Months
  • Interest
    20.33%
  • APR
    39.9%
Representative Example: 36 Monthly Repayments, borrowing £5,000. Total Amount Payable: £8,049.60. 39.9% APR Representative. Rate of Interest 20.33%, Fixed Flat Rate. Monthly Repayment: £223.60. TFS Loans
  • Considers bad credit, CCJs, debt consolidation
  • Loan can be paid in hours if approved
  • Award winning trusted guarantor lender
  • Loan Amount
    £500 - £15000
  • Loan term
    12 - 60 Months
  • Interest
    Variable
  • APR
    49.7%
Borrow £4,000 over 36 months. Monthly repayment of £194.78. Total repayable is £7012.08. Interest payable is £3012.08. Fixed APR of 49.7%. Interest rate of 41% per annum. Representative APR 49.7% (fixed). Talk Loans
  • Submit your application to multiple lenders
  • High chance of approval
  • Rates from 29% APR to 69.9% APR
  • Loan Amount
    £3000 - £50000
  • Loan term
    12 - 60 Months
  • Interest
    10.87%
  • APR
    21.8%
GOOD CREDIT SCORE: Loan amount £5000 – 48 monthly payments £129.17 Total cost of credit £1200.16 – Total amount payable £6200.16 – Representative example 12.9% APR. This is a yearly flat rate of interest of 6%. This is a fixed rate.
What Credit
  • Low Rate Car Finance Packages
  • Choose The Car From Any UK Dealer
  • Finance For Good & Bad Credit Profiles
  • Same Day Drive Away Car Loan Schemes
  • Flexible Repayment Terms For Your Car Loan
  • Loan Amount
    £3000 - £25000
  • Loan term
    12 - 48 Months
  • Interest
    25%
  • APR
    27.4%
Representative example – Vehicle price £5600.00, annual interest rate 25% (fixed), charge for credit £4200.00 (inc. option to purchase fee of £10.00), total amount payable £9810.00, 36 monthly installments £272.50. Representative APR 27.4% – subject to status. Get Me Car Finance
  • Allows borrowers with bad credit or those on benefits to take out a loan
  • Facilitates the car purchasing process
  • Fast application processing times
  • Loan Amount
    £500 - £10000
  • Loan term
    12 - 60 Months
  • Interest
    40.90%
  • APR
    49.50%
Representative Example: Borrowing £4,000 over 3 years at an interest rate of 40.9%p.a. (fixed), you will repay 36 monthly payments of £194.55. Interest payable £3,003.80. Total repayable £7,003.80. Representative 49.5% APR. TrustTwo
  • Guarantors who are homeowners, tenants or living with parents are considered
  • Funds can be issued within 24 hours of acceptance
  • Improve your credit score by making timely repayments
  • No fees are charged at any point. Ever.
  • Loan Amount
    £500 - £10000
  • Loan term
    12 - 60 Months
  • Interest
    24.20%
  • APR
    47.8%
Representative Example £3000 over 3 years, representative 47.8% APR Fixed. Monthly payment £143.84. Annual interest rate 24.2% Fixed. Interest payable £2178.24 Total payable £5178.24.
1plus1 Loans
  • Fantastic loan guarantor product to help those with poor credit
  • Loans are flexible and can be used for any purpose
  • Great for parents who want to help children build their credit score
  • Online customer service team that operates 24 hours per day
  • Loan Amount
    £550 - £50000
  • Loan term
    12 - 36 Months
  • Interest
    159.70%
  • APR
    450.5%
If you borrow £850 over 18 months at a flat rate of 132% per annum (fixed) with a representative 450.5% APR you will repay 17 monthly payments of £140.72 and 1 payment of £140.76, repaying £2,533.00 in total. Loans2Go Logbook Loans
  • Use your vehicle as collateral to increase the chance of acceptance
  • Generous and flexible loan terms of 12 – 36 months
  • Retain complete use of your vehicle during the loan
  • A lender with more than 15 years of industry experience
  • Loan Amount
    £250 - £1000
  • Loan term
    4 - 12 Months
  • Interest
    255.50%
  • APR
    839.20%
Representative Example: Borrow: £500 for 6 weeks. Repayment method: One Payment. Interest rate: 255.5%. Total repayment of: £647. Representative: 839.2% APR.
The Money Platform
  • A revolutionary peer to peer lending platform
  • Borrow up to £1,000 over a term of up to 12 weeks
  • Receive funds on the same day that you're approved
  • Loan Amount
    £1000 - £25000
  • Loan term
    12 - 60 Months
  • Interest
    2.9%
  • APR
    3%
A loan of £10,000 over 5 years will cost you £179.25 per month at a representative 2.9% APR. The total cost after 5 years is £10,754, which includes £754.87 interest at 2.9% fixed and a £0 fee. The total amount of credit is £10,000. Zopa
  • Cut out the banks and building societies to get better loan rates
  • Borrow up to £25,000 (subject to status)
  • More than £2 million of loans approved every day
  • No early repayment charges or hidden fees
Other types of loans

The automotive industry has seen a steady increase in vehicle prices over the past few decades which has made the prospect of buying a new car difficult for many consumers. In order to help consumers keep up with rising costs for what is seen by many as an essential purchase, a wide variety of car loans are available to UK customers.

Let’s take a look under the bonnet of car loans and find out how this line of credit can help you to purchase your next vehicle.

What Are Car Loans?

As the name suggests, car loans are a form of personal finance which can be used to purchase a new or used vehicle.

During the application process you’ll need to inform your chosen lender of some basic financial and vehicle details. These can include how much you’d like to borrow, the make and model of the vehicle, your driving licence status (full, EU, UK etc.), your occupation and some additional information on your personal finances.

The application is then underwritten in the same way as a traditional personal loan and, once you’ve been approved, you’ll receive a full break down of your repayment terms via your credit agreement.

What Types Of Car Loans Are Available?

The two most common types of car finance available in the UK are taken out through personal loans or hire purchase agreements. Whilst they both fundamentally result in providing you with the funds to make a car purchase, it’s important to understand the differences in the ways they are structured.

Personal Loans

Car loan finance as a personal loan will mean that you receive a lump sum equal to the amount needed to complete your car purchase. As soon as you’ve signed and returned your credit agreement, a lump sum will be paid directly into your bank account, enabling you to complete your purchase from either a private seller or showroom.

You’ll know exactly how much you’ll be required to pay back each month along with a detailed breakdown of the interest payments, total amount repayable, and the end date of the loan. These loans are most commonly issued on an unsecured basis meaning that none of your assets are used as collateral whilst you’re making repayments.

Hire Purchase

Hire purchase agreements have been around for decades and offer prospective vehicle owners a way to spread the cost of a vehicle purchase over a chosen number of months or years. Unlike with personal loans, hire purchase agreements are secured against the vehicle being purchased so you won’t actually own the vehicle until your final payment has been made.

In effect, the hire purchase lender will actually purchase the car in full on your behalf and then allow you to buy if from them in monthly payments, plus interest. Providing the vehicle as security is a great way to reduce risk to the lender which, in turn, can lead to higher rates of acceptance and potentially lower interest rates.

Hire purchase agreements can typically only be taken out for vehicles bought from authorised dealerships. Since they are purchasing the car on your behalf, they’ll want to see evidence as to where you’re vehicle is coming from, that it has been fairly valued, and is in sound working order.

As soon as the final hire purchase payment has been made, the ownership of the vehicle will be transferred to you.

Can I Have More Than One Car Loan?

Yes! As with any type of loan, your acceptance will be subject to status. This means that each application will be treated on its own merit and, as long as you can prove that a new loan or hire purchase agreement is affordable. You may need to disclose that you already have existing car finance in place, however this will be taken into account as part of your affordability check.

Each car loan lender has their own terms and conditions when it comes to how much you can borrow and over how long. Although not a fixed rule, you’ll typically be asked to borrow a minimum of £1,000 with a minimum term of 12 months, however there are lenders who can offer flexibility around these figures.

How Can I Apply For Car Loan Finance?

Loans for cars are quick and easy to apply for thanks to the Creditraters.com car loan comparison service. Simply complete some basic information online about the amount you wish to borrow and we’ll compare lenders from across the UK to help you find a great deal.

Once you’re application has been submitted, you’ll be informed of the final outcome within a matter of days and funds will be transferred directly to your personal bank account.

So what are you waiting for? Get a great deal on your next car loan today at Creditraters.com and take the hassle out of financing your new vehicle purchase.