Car Loans

  • Personal loans for a car
  • New & used cars
  • Dealer & private sales
  • All credit ratings
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Personal Car Loans

Personal loan rates are as low now as they have ever been. If you have at least a reasonably good credit history this is likely to be the cheapest way to get behind the wheel of a brand new car. Using a personal loan as the way to pay for your car has other benefits too:

  • you own the car immediately
  • you can combine it with cash savings to pay for it and minimise the loan
  • you can buy the car from anywhere
  • you can keep the car as long as you want and use it as much as you want


Not the car finance option you wanted? Check out: PCP | Hire Purchase | Car Leasing

Car Loan Quotes

About CarFinance 247

How Car Loans Work

The Government’s Money Advice Service says “personal loans are usually the cheapest way to borrow over the long term.” This may surprise you as you no doubt have many friends who shout the praises of car finance and in particular PCP deals. PCP is “pushed” hard by both car manufacturers and car dealers for two major reasons:

  1. You can drive a new car every few years – and everyone likes the idea of a new car!
  2. Paying a fixed amount each month is an easy message to get across in an advert – and it makes it sound cheap.

There are other reasons too why a personal car loan could be better for you than car finance:

  • You own the vehicle from the start – PCP leasing is effectively long-term rental and you only get the opportunity to own the vehicle if you make a final large payment at the end
  • You can buy any car from anywhere – including from private sellers
  • If you get into financial difficulty you can always sell the vehicle – it’s yours after all
  • There are no limits on your annual mileage – and no penalties if the limit is exceeded
  • You can modify the car in any way without getting permission
  • You don’t have to keep the vehicle in good condition (although this will lessen its value of course)
  • You don’t have to get permission to take your car abroad on holiday

How to Choose the Right Car Loan

If you want a car loan then you need CarFinance 247

Our car finance associate CarFinance 247 is one of the UK’s leading car loan brokers. We’ve teamed up with them because they offer excellent service (a rating of 4.6/5 on Trustpilot) and share our values. Their service extends beyond simply finding your car loan. They have an approved network of dealers you can use if you wish, and regardless of where you find your next vehicle, they will check its history and value for your peace of mind. And they do not charge any fee! Young people aged 17 to 21 can also consider Marmalade for car finance.

Decide what you need

1: Decide what you need

Consider both the amount you need to borrow and the amount you can afford to repay each month.
Learn about car finance

Buy with confidence

3: Buy with confidence

CarFinance 247 can help you find a car to meet your needs if you haven't already got one in mind. They can provide a history check and valuation for peace of mind.
Learn about CarFinance 247
Aged 17-21? Learn about Marmalade

Get on the road

4: Get on the road

Once the lender has approved your application CarFinance 247 will pay the dealer for you and all you need to do is collect the car!

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Car Finance Loans Guide

If you’re uncertain which type of credit might suit you or you have a money problem then one of guides may help you. We summarise each type of loan and their pros and cons, and address issues regarding debt and credit ratings.

Got a Question about Car Loans?

Answers to Common Questions

Please note: this information is for guidance only. You should clarify the terms of the loan with the lender before entering into an agreement.

Which car loans are best?

There are many credit products that can fund your next car. Some are unsecured and others secured. Some favour those with bad credit. Others are only available to homeowners. Then there are specialist car finance products where you can choose to simply rent the vehicle long term or aim to buy it outright.

So, it is impossible to say which is best for you. You need to be honest with yourself about your current circumstances, and also be clear about your objectives. Finally, you need to consider what you can afford to pay each month and if you have cash savings you’d like to contribute to the deal.

What bad credit car loans are available?

This will depend on how bad your credit rating is. In general you can consider these types of credit:

  • Hire purchase – more likely to be accepted than for a PCP deal if you have credit problems
  • Guarantor loan – an unsecured personal loan designed to help those with poor credit
  • Secured loan – you need to own your home and have a mortgage
  • Bad credit personal loans – with a higher interest rate than a guarantor loan
Does a bad credit car loan need a guarantor?

As mentioned above in the FAQs there are a variety of types of credit you could use for your next vehicle if your credit is poor. By definition, a guarantor loan needs you to provide a guarantor, and sometimes some forms of car finance will also. However, a secured loan does not and this could include hire purchase.

Are car loans secured or unsecured?

People most often think of car loans as personal loans. These are unsecured. Credit is secured if the lender can seize the asset to pay off the loan if the borrower fails to keep up with repayments.

In terms of credit for a car we would cluster the alternative forms of credit as follows:

  • Unsecured – personal loans, guarantor loans
  • Secured – secured loans, remortgages, specialist car finance (PCP, HP, leasing)

In the case of the car finance options, the finance company retains title to the vehicle during the agreement so this is considered secured debt.

What forms of car loan allow me to buy from a private seller?

Virtually all types of credit will allow you to do this. Even some forms of specialist car finance. In this case you would need to check with the lender before you sign the agreement. We would recommend you talk to CarFinance 247 to see what is available.

Car loans vs car finance

There are various types of credit that can be clustered as “car loans”. Some of these are secured loans. But if a car loan is treated as a personal loan then the differences between this and car finance are as follows:

  • the car loan is likely to be the cheapest way to borrow overall
  • you’ll own the car from the start, and the loan is not secured against the vehicle (so you won’t necessarily lose it if you fail to make repayments)
  • you can buy the car from any source (private or dealership)
  • you can keep the car as long as you wish and sell it whenever you want
  • you can use the car as much as you want without the risk of any penalty payments
  • you can modify the car as you wish


  • No Upfront Fees
  • Smart Online Service
  • Stay Safe & Secure
  • Independent & Impartial
  • Trusted Partners


For over a decade Solution Loans has helped people all over the UK find solutions to their personal finance problems.



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Our reputation is great. In fact we have scored 4.6 out of 5 based on 197 ratings & 30 user reviews for our car finance service.


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Written/Reviewed by: Amanda Gillam

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