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Personal Loan for Car Finance

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Rates from 9.9% APR. Representative APR 19.9% Car Finance 247 is a credit broker, not a lender.
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ford fiesta

*Car Finance 247 runs a soft credit check for your quote (no impact on your score). If you proceed, a hard credit check is required which may affect your score.

Rates from 8.9% APR. Representative 19.9% APR. Hire Purchase (HP) Example: Borrow £10,000 over 5 years with a £0 deposit. Representative APR 19.9% fixed rate. Monthly payment: £255.50. Option to purchase fee £10 payable. Total cost of credit: £5,340.00. Total amount repayable: £15,340.00. Car Finance 247 Limited is a credit broker not a lender.

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What is a personal car loan?

With a personal loan, you can borrow a lump sum to buy a car.

While we don't currently work with lenders that can provide personal loans at CarFinance 247, you’ll usually receive the loan in one go and then pay it back in monthly instalments. Depending on the type of personal loan you have, this might be fixed amount every month or it could change based on current interest rates.

There’s no deposit needed, but the lender might ask you to pay an arrangement fee upfront or as part of your monthly payments. The thing that makes personal loans really stand out from the car finance crowd is that the finance company won’t own your car – it’s all yours as soon as you pay the seller.

That means no restrictions. You can sell the car, go on an epic road trip, or even take it off-roading; as long as you keep up with your repayments, anything goes.

Keep in mind though that, if you opt for a restricted use personal loan, it could come with terms and conditions. Check the small print to be sure.  

How do personal loans for a car work?

You’ll need to pass a credit check to qualify for a personal loan. Next, you’ll need to decide whether you’d like a fixed or variable rate and how long you’d like to have to pay it back. Typically, the longer your loan period, the lower your monthly payments will be. It’s important to note though that the interest added may mean you’ll end up paying back more overall.

At CarFinance 247, we aren't currently able to offer personal loans. 

Personal Loan vs Car Finance

One of the best things about using a personal loan to buy a car is that the funds are typically transferred straight into your account so you can purchase like a cash buyer. This means no mileage restrictions or balloon payments to worry about.

However, personal loans can have higher monthly repayments than car finance options like PCP and, as you’ll own the car straightaway, depreciation will be a factor as it loses value over time.
From our expert
“Car finance can be a lifeline for those with bad credit as it offers a manageable way to own a car while rebuilding your credit score with consistent, on-time payments”
Louise Haines
Louise Haines
Job title

Personal Loan for Car Finance Calculator

£
£3,000£200,000
£
Term
Finance type
Vehicle price£10,000.00
Deposit£1,000.00
Amount to finance£9,000.00
APR
11.9%
Option-to-purchase fee£10.00
Total cost of credit£2,227.55
Total amount repayable£12,237.55
48 monthly payments of£233.91
Rates from 8.9% APR. Representative APR 19.9%.

Rates from 8.9% APR. Representative 19.9% APR. Hire Purchase (HP) Example: Borrow £10,000 over 5 years with a £0 deposit. Representative APR 19.9% fixed rate. Monthly payment: £255.50. Option to purchase fee £10 payable. Total cost of credit: £5,340.00. Total amount repayable: £15,340.00. Car Finance 247 Limited is a credit broker not a lender.

What are the pros and cons of personal car loans?

Pros:

  • You own the car as soon as you pay the seller
  • With a fixed rate loan, your repayments are the same every month
  • You’ll have no mileage restrictions and can modify the car however you like

Cons:

Is buying a car with a personal loan the right option for me?

Always check your agreement for restrictions but buying a car with a personal loan could work for you if:

  • You want to own the car straightaway
  • You want to drive as many miles as you like
  • You want to modify the car to your own specifications

Why come to us for a personal loan for a car?

For us, used car finance is all about helping people improve their everyday lives.

Whether it’s sorting out the school run, getting that big boot for the big shop, or just the car you’re proud to park outside the office, we work to get the right personal loan deal for you.

Plus, you’ll have a dedicated account manager on hand to help you through the process.

Why come to us for personal loan car finance?

A helping hand

At Car Finance 247, used car finance is all about helping people improve their everyday lives. We understand that building a good credit score isn’t always easy, and we believe that people should not be penalised for past mistakes. Unfortunately, some individuals find themselves trapped in a cycle, hindered by the lack of a vehicle, impeding both their commute to work and their ability to improve their credit score.

Dedicated account manager

Plus, you’ll have a dedicated account manager on hand to help guide you through the process, so there’s nothing to worry about.

Finding you the best deal

Whether it’s sorting out the school run, getting that big boot for the big shop, or a car you’re proud to park outside the office, we’ll work to find you the best deal from our panel of lenders, even if you have bad credit.

Frequently Asked Questions

  • Can I settle or pay off the loan early?

    Yes! To settle or pay off the loan early, contact your lender directly. They will provide you with a settlement figure based on your remaining monthly repayments, arrears, and interest. The further you are into your agreement, the lower your settlement figure may be. But be aware that you might have to pay a fee to settle the loan early; read your agreement carefully to find out more.

  • Is there a cooling off period?

    Yes, if you change your mind and no longer want to continue with your car finance agreement, you have 14 days to reject it. This time is also known as the cooling off period. Your 14 days start on either the day that you sign your agreement or the day that you received a signed copy it, whichever happened later.

    And it’s not just car loans, a 14-day cooling off period applies to all regulated finance agreements.

  • What happens if I can’t keep up with my repayments?

    We understand that circumstances can change and keeping up with your monthly repayments can get tough. There are a few things you can do in this situation.

    1. Sell your car

    While the car may have decreased in value since you first bought it, you may still be able to generate enough revenue to pay off the rest of your loan by selling it.

    1. Speak to the lender

    If your change in circumstances is temporary and you want to keep your car, your lender may be able to help by deferring payments or providing a temporary payment break. They may even be able to put a more manageable payment plan in place.

    1. Refinance your loan

    You may be able to find a new deal with a lower interest rate or longer repayment period to reduce your monthly costs.

  • Can I refinance my car?

    Yes! Whether you’re looking to get a better deal or reduce your monthly repayments, CarFinance 247 could help! We work with a panel of lenders and several of them can offer refinancing loans. When you refinance, you’ll settle your current finance with a one-off payment. Depending on the deal, this payment could be covered by the new lender or incorporated into your new loan amount.