Car Personal Loan

A car personal loan can be an alternative way to fund your next car purchase. Rather than the finance being secured against the vehicle itself, a personal loan allows you to borrow a fixed amount and repay it over an agreed term. 



We can introduce customers to trusted lending partners who may be able to help. 


Understanding Personal Loans

A vehicle personal loan is an unsecured loan that can be used to purchase a car, van or other eligible vehicle. 


Unlike some vehicle finance products, the loan is not secured against the vehicle itself, meaning you own the vehicle outright from day one. 


Loan terms typically range from 1 to 7 years, depending on the lender, the amount borrowed and your individual circumstances. The interest rate offered will vary based on factors including: 

  • Your credit profile 
  • Income and affordability
  • Loan amount
  • Loan term 
  • The lender's own criteria


Who May Be Eligible

  • Aged 21 or over.
  • Have been a UK resident for at least three years.
  • Hold a UK bank or building society account
  • Have a regular, provable income.
  • Meet the lenders' affordability requirements.
  • Have a satisfactory credit history.


Acceptance is subject to status and individual lender criteria.

Benefits Of A Personal Loan

  • Own the Vehicle From Day One: The vehicle belongs to you from the outset.
  • Fixed Monthly Payments: Monthly repayments remain the same throughout the agreement term. 
  • No Mileage Restrictions: Drive as much or as little as you wish without excess mileage charges.
  • Flexibility: Many lenders allow overpayments or early settlement, although terms and conditions will vary.
  • Private Purchases: A personal loan may be used when buying a vehicle from a private seller, subject to lender criteria.


Cons Of A Personal Loan

  • Creditworthiness Matters: Approval and interest rates will depend on your credit profile and affordability.
  • Monthly Payments May Be Higher: Depending on the loan amount and term, monthly repayments may be higher than some other finance products.
  • Loan Terms Vary: Not every lender offers the same rates, terms or borrowing limits.


Finding The Right Option

Every customer is different, which is why comparing options can be important. Car Loans R Us can introduce you to lenders who may be able to help find a suitable vehicle loan based on your circumstances.