The right car loan for today, and for tomorrow
- Loans from £1,000 to £35,000
- Compare over 50 UK-based lenders
- Our search won’t impact your credit score
Let’s accelerate your next car purchase
At Aro, we can help you quickly search over 50 UK lenders. This lets us do the hard work of finding you the right finance options, letting you focus on finding the car that’s right for you.
One simple search to compare your car loan options
Search without impacting your credit score
Get matched to the right options for your needs
Car loans in a nutshell
What do I need to know about car loans?
Unlike some other car finance options, a car loan will allow you to keep your car once you’ve paid it off in full. Usually, a car loan is an unsecured personal loan. This means that the loan isn’t secured against your property. Instead, the lender will let you borrow money to buy a new car, and you’ll pay it back (with interest) in monthly instalments over the loan term.
As with any big financial decision, you’ll want to be thorough with your research before deciding which car finance option is right for you. Running a car loan comparison is a good place to start. From there, you’ll be able to see the best car finance deals available to you.
Not sure how to run a loan comparison? Check out our guide to comparing loans.
Will I be eligible for a car loan?
Whether you’re eligible for an unsecured personal loan depends on many factors, one of which is your credit score. If you have a high credit score, it’s likely you’ll be eligible for better car loan rates. If you have a low credit score, your rates are likely to be higher and it’s possible you won’t meet the lenders’ eligibility criteria.
To find out more, read our guide on how to improve your credit score.
What do I need to think about when comparing car loans?
If you have multiple car loan options, you’ll want to try to work out which one is best for you. First, ensure you can afford the monthly repayments for the entire loan term. If you miss repayments or default on your loan, it can negatively affect your credit score and your chances of getting a loan, credit card or mortgage in the future.
You’ll also want to make sure you’re comfortable with the APR (Annual Percentage Rate). Not everyone will receive the Representative APR, so make sure you take note of the APR you’re being offered. The lower the APR, the better.
Finally, make sure you’re aware of any additional costs, fees and terms that come with your car loan offer. Read the terms and conditions carefully before you proceed.
Car loans aren’t the only option out there
You don’t need to have the cash in full to buy a car thanks to the multiple ways you can finance your next car purchase. Here at Aro, we can search over 50 UK lenders and match you with the borrowing option that’s right for you.
Personal loans
Borrow a lump sum, pay for your car, pay the money back in monthly instalments plus interest. Simple, right? You could choose this option if you want to buy without mileage restrictions and you definitely want to keep the car you’re buying.
- Borrow up to £35,000
- Spread the cost over one to seven years
- Own your car fully from point of purchase
Hire purchase
Hire purchase lets you borrow your car over a fixed term, paying monthly. You could own the car at the end of the contract if you wish (possibly with a payment involved), or you could just hand it back. The amount you borrow is secured against the value of the car, and you won’t own the car until you make the final payment at the end of the contract.
- Borrow up to £200,000
- Spread the cost over one to six years
- Own your car after the final repayment
Personal contract purchase
Similar to hire purchase, but taking the changing value of the car into account. Your car’s value may decrease over time, so this is factored into your monthly payments with PCP. The payments may be lower than with other finance options, but there’s often a balloon payment at the end of your contract to own the car fully, or you can hand the car back to the dealership.
- Borrow from £10,000 to £35,000
- Spread the cost over three to five years
- Own the car after the optional final payment is made.
Getting help with your finances
If you find yourself in financial difficulty, you can get free, impartial advice from Money Helper. Give them a call on 0800 138 7777 or visit their website.
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