Compare Car Finance

At Bright Compare we have partnered with CarLoans UK to make it easy to find a great deal on your car finance 
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Compare car finance

Car finance is how people can spread out the cost of purchasing a new vehicle. The term actually covers several different types of financing that can be used to pay for a car. For most finance arrangements, the finance company buys the vehicle on your behalf and borrowers will repay the value as well as additional interest. For the majority of these arrangements, customers will pay an initial deposit, followed by a series of monthly payments.

This means that paying for the vehicle is spread out over time. This makes it much easier to purchase a car, as you do not need to put forward the whole cost up-front. However, like any other type of loan, there are rates and fees involved that can vary from lender to lender. For this reason, taking the time to do a full car finance comparison really important.

When you reach the end of your agreed finance term and you have made all the required repayments, you will become the legal owner of the vehicle.

What do I need to take out car finance?

To apply for car finance, you generally have to be over eighteen years old, although individual lenders will have their own specific requirements. To start the process, you will need full contact details, our address, expenditures, incomings, and details about your employment. You will also need to know how much you want to borrow and for how long.

When thinking about applying for car finance, it’s a good idea to sit back and note how much you’re spending per month. How much can you realistically afford to repay each month? What is the status of your credit history? Knowing these details will make car finance comparison much more effective for you and your individual needs.

What types of car finance are there?

There are many options when financing a car but there are three main options that most lenders use:

– A personal loan: The simplest and most straightforward option, this involves taking out a loan from a lender to purchase a car.
– Hire purchase: The buyer will pay an up-front deposit, most commonly 10%, and this is followed by monthly payments. After the end of the loan term, you will own the vehicle outright.
– Personal contract: The buyer will accept lower monthly payers based on what the lender believes the car will lose in value. Throughout the process, you have the option to purchase the vehicle outright.

How much does car finance cost?

Comparing car finance from one lender to another is pretty tricky, as they may offer significantly different terms. To work out the costs, a lender will use these factors:

– The potential interest: An APR (annual percentage rate) will be added to the loan and to the monthly repayments. The interest offered will usually be based on a borrower’s credit history.
– Your credit history: Your financial history will tell lenders whether you are reliable or not. A poor credit history may result in a more expensive loan.
– Loan duration: If the loan is set to be repaid over a longer term, then you will have a monthly repayment that is smaller. It is important to bear in mind that this route will involve paying more interest as the repayment period is longer than a shorter-term loan.
– Additional charges and fees: A lender may add in additional charges for any changes that you wish to make, such as paying the loan back early or making late repayments. Some lender offers may involve arrangement fees but these are not an industry standard.

How can I compare car finance with my credit score?

The car finance you are offered may be heavily dependent on your financial history. If you have a higher credit score, you will have access to a wider range of personal loan options and the opportunity to negotiate for a rate of interest that is more favourable to you.

Borrowers with a lower credit score, a negative financial history, or who are too young to have built up a credit score may find they have a limited amount of lenders willing to work with them, but there should still be options available for purchasing a vehicle. Options to consider for securing a car finance deal are:

– Secured loans: This is where borrowers offer up their property—such as their home—as collateral for the loan. This is more useful for those with a home; younger borrowers may not have the assets available for this option.
– Unsecured personal loans: These avoid the risk of putting your home up as collateral, but may involve a higher rate of interest than you are comfortable with.
– Guarantor loans: This is where a friend or family members guarantee the loan; if you default on a payment, they will be responsible for making the payment in your stead.
– Lenders may also have specific loans that are designed for younger people with no history of borrowing.

Compare Car Finance Providers

Finding the best car finance arrangement to fit your situation and requirements can be tough. That’s where Bright Compare can help. At Bright Compare, we make sure that you get the best deal every time. Our comparison technology can really put our users right in the driving seat with every single financial decision they make.

Bright Compare’s smart comparison technology helps find the right deal that suits your own unique situation, and makes sure you get the best quotes in the fastest time. Our website is fully secure and entirely independent and impartial—we are not sponsored by any of the major lenders which makes us impartial with the car finance providers that we provide. We do not sell any user data and we will make sure that you never miss a renewal. Our service is simple, easy, and always accessible. The Bright Compare website is there 24 hours a day to compare car finance at any time you need to—whether that is over breakfast, scrolling in the evening, or in the middle of the night.

Personal loans

If your savings aren’t enough to pay cash upfront, a loan could help you buy that dream car. You’ll have three options:

  • Bank loan
  • Credit card
  • Borrow against your property

You’ll need a good credit rating and the discipline to make regular repayments. If you borrow against your property, your home could be put at risk, and you’ll often find you pay extra fees or higher rates for your borrowing.

How to get the best car finance deal

Getting the best finance deal on thousands of cars is as easy as one, two, three:

1. Use our quick and easy form to get an instant decision 24/7 that won’t impact your credit rating
2. Choose a car from any dealer nationwide and we’ll handle the payment for you
3. Drive off into the sunset in your new car

Before you commit, just plug your details into our car finance calculator to find out your monthly repayments on the car of your choice.

At Brightcompare, we can get you the best deal on your car loan, even if you’ve been refused elsewhere. We understand the hassle of car finance bad credit ratings and finding the right deal which is why we do all the hard work for you. Any more questions regarding car finance, please check out CarLoans UK

Ready to make car finance simple? Set your budget and get a quote today.

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CarLoans UK are credit brokers and not lenders. All finance is subject to status and income. 

Bright Compare introduce customers to CarLoans UK, which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 928674). Bright Compare’s relationship with CarLoans UK is that of a business partnership, no ownership or control rights exists between us.

Frequently Asked Questions

It's often possible for you to get car finance if you have a bad credit rating. Research the numerous car finance options available before applying, compare the interest rates and total repayable amount and make sure you can comfortably afford the repayments.

Car finance is available to buy used cars although the age of the car may be a restriction on some finance options. Make sure you do your research to ensure you choose the deal that suits both your financial situation and car use.

You can get car finance with no deposit. Some Personal Contract Purchase and Hire Purchase contracts require no deposit, or you can use a personal loan. However, repayments are generally higher, and you may pay more for your car in the long term.

The variety of car finance options to choose from means there will be a deal that's more suitable for your financial needs than others. Exploring them and comparing lenders is the best way to make sure you chose the right one for you.

To apply for car finance, you'll need at a minimum your driver's license, proof of income and address history. You'll also need to consider your budget and your credit rating as these will impact the lender's decision to approve your application.