Car loans

There are three ways to finance a used car, as we will explain below.

But before you look for a car loan, you need to find out what your credit rating is. Without knowing that you can't decide if you have found the cheapest interest rate for your situation or not.

Cick here to get a Free Experian Credit Report.

If you're credit rating isn't good, or you don't think it is right, read this car loans advice .

Three ways to a car loan or finance:

You can wait and see if the dealer can provide finance. This will be secured on your car. But Used Car Expert's independent research shows that most dealer finance is at least 3% higher than the alternatives.

   

You can get an unsecured loan personal loan. You should not just go to your own bank for this as they may not have the most competitive rate. Visit Know Your Money to see the best available rates.

 

Or, you can call Credit Plus who provide an "armchair" service. They can provide finance, just like a dealer would, but at a better rate (as competitive as a personal loan). They can also help to find the car you want. Visit Credit Plus to see if their service is for you.

 

If you are not sure about the differences between unsecured and secured car finance, read our car loans advice .

If you complete any loan application form, you will probably receive a call from some providers who want to help.

DO NOT just answer their questions and complete a loan application UNTIL you have asked two key questions:

  • Will you credit check me?
  • What is your APR?

If they can't answer these questions, don't proceed. If the APR is not good enough for your credit rating, don't proceed.

If however they are offering the best APR, go ahead and apply!