Welcome to CarloansUK

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Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 21.9%, monthly payment would be £152.06, with a total cost of credit of £2,298.88 and a total amount payable of £7,298.88. CarLoans UK is a broker not a lender.

What is car finance?

Firstly, car finance essentially is a payment plan, where the customer will pay back the cost of the car with monthly payments. This therefore allows the customer to spread the cost of their vehicle over a specified amount of time which can be agreed between the customer and the dealer. These contracts on average last around 4 years. Each type of car finance however, is different in terms of length of repayment. Which is why using a car finance brokerage site such as ourselves is paramount in achieving the best car finance deal.

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Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 21.9%, monthly payment would be £152.06, with a total cost of credit of £2,298.88 and a total amount payable of £7,298.88. CarLoans UK is a broker not a lender.

Rates from 6.9% APR. Representative APR 21.9%

How does car finance work?

1. The initial deposit

This step isn’t always required. Although, placing down a deposit when completing a car finance agreement is highly recommended. Because simply put, the more money you can put down initially. The cheaper your repayments will be.

2. Repayment plans

Depending on the agreement that has been put in place, your repayment plan may vary. 

It should be noted However, the most simple car finance repayments usually associated with Hire Purchase. Requires you to make fixed monthly payments until the total value of your finance contract has been paid.

3. Contract completion

 Upon completion of your contract, you will then have a number of different options available to you. The most common options being as follows.

PCP

  • Simply return the vehicle to the dealer
  • Keep the vehicle and pay the option to purchase fee

HP

  • Option to purchase fee

Types of car finance brokerage services

At CarLoans UK, we provide numerous amounts of different finance options across our car finance brokerage site. Which then allows you to find the best way to pay with ease. Including but not limited to PCP Car Finance, HP Car Finance or No Deposit Car Finance just to name a few. Because CarLoans UK has got you covered,  don’t believe us? Then take a look at our excellent trust pilot reviews and see for yourself.

get an instant online decision

Using our quick and easy form you get an instant decision in a matter of minutes. Apply for a car finance 24/7 days a week through our short form.

find your dream car from any reputable dealer

Choose from any reputable car dealer nationwide and find a car that suits you, your budget and local to you. Let us know and we will do the checks on the car and pay the dealer directly for you.

sign and collect your new car

Once we have dotted the I's and crossed the T's, we will do the rest of the paperwork. You can pick your new car from the dealer and hit the road in your new vehicle, it's that simple.

Why choose CarLoans UK?

The old traditional way of buying a car is by getting the finance at the same place as you buy the car from. Although this doesn’t always ensure you the best deal. Which is why using a car finance brokerage site is essential.

If you get the finance first from Car Loans UK however. You are buying your car from a position of strength, you know what you can afford. Because often dealers can only offer a limited number of deals from one finance company. But also at Car Loans UK we have many lenders on our panel. Which in turn means we can make sure you are getting the best finance deal for you when we help you compare car finance in the UK.

Plus, we do all the admin, paperwork and negotiations with the dealer. Because this way, you can drive straight off in your new purchased car instead of spending hours in the dealer’s sales office.

When you choose Car Loans UK as your trusted car finance brokerage site to conduct a car search. You can rest easy knowing you are in safe hands. Because we aim to make comparing car finance as quick and easy as possible. This is because our specially trained brokers are here to provide you with an unparalleled level of service, to make the car finance brokerage process as smooth and as easy as can be to help you drive away in the perfect car for you as soon as possible. CarLoans UK has got you covered,  don’t believe us? Then take a look at our excellent trust pilot reviews and see for yourself.

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Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 21.9%, monthly payment would be £152.06, with a total cost of credit of £2,298.88 and a total amount payable of £7,298.88. CarLoans UK is a broker not a lender.

F.A.Q

What is a car finance broker?

What is a car finance broker?

 

A car finance broker is essentially a middle man between the customer and the lender. A car loan finance broker will take care of all of the complicated paperwork as well as the negotiations with lenders. Which essentially means you can sit back and relax knowing that the broker is fighting your corner to get you the best deal possible. All whilst making your car finance journey as stress free as possible. Not only this but car finance brokers such as ourselves, also have deals that aren’t usually available to the general public, and to top it all off. Car finance brokers will actually charge the dealerships instead of the customer.

What if I've been refused by other brokers?

What if I’ve been refused by other brokers?

 

If you have been refused by other brokers in the past, all is not lost. At CarLoans UK we have a number of finance options for those with bad credit scores. However, you should be aware that when you apply for car finance through us, a hard credit check will be conducted, which may in turn have a negative impact on your credit score. Especially if these credit checks have been done in quick succession. So therefore it is recommended that after being declined for car finance, you should wait between 3-6 months before applying again.

What if I'm struggling to make payments?

What if I’m struggling to make payments?

 

If you are struggling to keep up with your car finance repayment plan. There are a number of options available to you.

It is of great importance that you obtain free independent advice from one of the following charities/organisations. 

Money Advice Service

National Debt Line

Citizens Advice

Can I change my mileage on PCP contracts?

Can I change my mileage on PCP contracts?

 

In short, the answer is no. 

This is because the return value of the car has already been estimated once you have signed your PCP car finance contract. It is important to note that going over your agreed mileage allowance will also incur extra fees at the end of your PCP contract.

Does a car loan build my credit score?

Does a car loan build my credit score?

 

Initially, applying for a car loan usually will have a negative impact on your credit score. Although, you should be aware that if you make your car loan repayments on time. This will most likely have a positive impact on your credit score.

What is APR?

What is APR?

 

APR stands for annual percentage rate and is the total amount charged for the lend. There are however, two different types of APR. 

Exact APR in short means that the rate that is shown to you, is the rate that you will get. Whereas, representative APR however, means that 51% or more of the people who apply for the finance will receive that rate. What this means is that customers with poor credit scores could see a higher APR. 

Representative APR is for the most part, used to advertise the companies rates. After you have provided all of the necessary information to the lender, they can then offer you your exact APR rate.

What is gap insurance and do you need it?

What is it?

Gap insurance stands for Guaranteed Asset Protection. 

Essentially what  gap insurance is, is a form of insurance that is designed to cover the difference between the amount your insurance provider pays out in the event of your vehicle either being written off or stolen, and the price that you paid for the vehicle. You should however be aware that gap insurance works alongside your standard car insurance and is in no way a substitute. 

 

So when is gap insurance needed?

 

Gap insurance can be worthwhile in a number of ways. Firstly, if you have taken out a big loan to buy your car. Gap insurance would be beneficial as mentioned previously, if your car is stolen or written off. This is because the gap will pay off the outstanding finance.

As well as this, gap insurance could also be beneficial if you are worried about your car depreciating in value. As a brand new car will lose between 15-35% of it’s value in the first year. Therefore gap insurance can help you get a bigger pay out if your car is written off after it has already depreciated in value. 

 

Where can I get gap insurance?

 

Comparing gap insurance quotes has never been easier thanks to Bright Compare

What if there is a problem with the vehicle?

The vehicle has a problem

 

If the vehicle is faulty on delivery, you can simply refuse the car and send it back to the dealership.

Can I modify my car if I buy it on finance?

Can I modify my car if I buy it on finance?

 

You can, however you will have to ask the finance company for permission prior to making any sort of modifications.