Looking for an affordable car loan?

Funding a new car purchase with a loan has never been more popular. The lower interest rates we have been experiencing mean that loans have become more affordable. A car loans helps to spread the cost of buying a car through manageable monthly repayments over an agreed period of time.

At Loanbuzz, we know applying for a car loan can be confusing. We are committed to making the process quick and easy:

  • We only show you loans that you’re likely to be accepted for
  • You’ll get offers straight away from lenders
  • We present unique loans, tailored to your circumstances
  • We keep your details private, so you won’t get any hassle from third parties

The repayments you make will depend on your situation and the amount of the loan you go for. 
You must be a UK resident over 18 years old to apply.

Ready to get a loan ?

Use our personalised search to find your loan first time without harming your credit score

check your eligibility for a loan

What options are out there?

Personal loan

Want to own your vehicle outright? By choosing a personal loan, you’ll be able to buy directly from a car dealer or privately. The car will be yours from day one and having the cash from the loan available in your bank account will help you to negotiate a better deal.

With a personal loan, you have the freedom to decide how much you need to borrow and how long you want to repay the loan over – normally between one and five years. The interest rate you pay will be based upon your personal circumstance, your credit history, the amount that you’re looking to borrow and how long you want to spread the payments over.
At Loanbuzz, we make applying for a car loan simple and straightforward. We’ll find you a lender that’s best placed to help based on your personal circumstances and needs. Once your interest rate, loan amount and repayment period are agreed, you’ll make fixed monthly repayments to the lender over that period.
Unlike some other types of car finance, a personal loan is not secured against your vehicle. This means that, if you miss repayments, the lender does not have the right to repossess your vehicle.

Ready to get a loan ?

Use our personalised search to find your loan first time without harming your credit score

check your eligibility for a loan

Other options

Personal Contract Purchase (PCP)

With a PCP, you make a deposit on the car. Like with most loans, the higher the deposit, the lower the repayments. Once the contract comes to an end, you pay the decline in the vehicle’s value and decide between paying the remaining value and keeping it, returning it, or finding a new PCP and getting a different car. Leasing is usually offered by manufacturers or car dealerships on new or nearly vehicles.

Hire Purchase (HP)

With a HP agreement, you make payments to a lender while essentially hiring the vehicle from them. Once the final payment is done and dusted, you own the car! This agreement typically comes with a deposit that, similarly to a PCP, affects how much you’ll pay back each month.

Leasing

Leasing is sometimes known as personal contract hire. With a lease, you’ll pay a monthly fee for the long-term rental of vehicle over a pre-agreed period. You’ll normally be asked to pay a larger sum up front – ordinarily two or three months’ lease payments. At the end of the lease period, you simply hand the car back to the lender. To avoid additional expense, watch out for mileage limits that are part of the agreement and make sure that you can hand the car back in good condition. Monthly lease payments can be lower than for other forms of credit as you’re not paying anything towards ownership of the vehicle. Leasing is usually offered by manufacturers or car dealerships on brand new vehicles.

What’s the cost of a personal loan for a car?

A car loan can be a great way of helping you to pay for your new wheels. When comparing the cost of all types of loans, it’s worth understanding the factors that impact the total amount that you’ll repay – including the annual percentage rate (APR) and any charges.

Here’s some things to look out for, and how Loanbuzz can help you compare car finance:

  1. We show you the actual APR you’ll be charged

    1. Most comparison sites and lenders simply show you a representative APR. However, only some people will get the interest rate as advertised – meaning that a large number of applicants will pay more. At Loanbuzz, we show you the Truerate: a figure including the entire cost of your loan.
  2. We compare loan offers without harming your credit rating

    1. A less-than-perfect credit rating can still be accepted for a loan; however, you might be charged a higher interest rate. At Loanbuzz, we display quotes from lenders that include the true APR you’ll be charged alongside the likelihood you’ll be approved – all without affecting your credit score.
  3. We only work with lenders who offer a fixed interest rate

    1. Some personal loans have variable interest rates, allowing them to change over time. For this reason, if you’re struggling to afford initial repayments, avoid this type of loan. At Loanbuzz, we only display fixed-rate offers, so you know exactly how much you will pay each month until the loan is fully repaid.
  4. We flag up any arrangement fees

    1. Some lenders charge an arrangement fee, which could make a loan more expensive. At Loanbuzz, we’ll always show you the APR and the total amount repayable for each lender (including any arrangement fee, interest and other charges), so you can easily compare the total cost of loans available.

Ready?

Some personal loans have variable interest rates, allowing them to change over time. For this reason, if you’re struggling to afford initial repayments, avoid this type of loan. At Loanbuzz, we only display fixed-rate offers, so you know exactly how much you will pay each month until the loan is fully repaid.

check your eligibility for a car loan

We're choosy about who we work with

Every lender we work with is a reputable company, fully authorised and regulated by the Financial Conduct Authority (FCA). We know they’ll treat you fairly and be transparent.

Search loans with these lenders

What makes us different?

Loanbuzz was designed to help consumers compare loans with confidence. We think the days of showing only headline interest rates that tease users into applying for products they may not be eligible for needs to end. Loanbuzz aims to make it easy to apply for loans by ensuring every product you see is a pre-approved or agreed in principle offer from a lender.

  • We’ll always be straight with you.
  • We’ll always work hard to find a lender for your circumstances, every time.
  • We’ll always show you True Rate offers — you’ll know if you can apply and be successful.
  • We’ll always hold our lenders to a very high standard. All of our lenders are authorised and regulated by the FCA.

  • We’ll never take risks with your personal data - we only share it with our trusted panel of lenders, in order to ensure you find a suitable loan.
  • We’ll never contact you without your permission.
  • We’ll never put loans higher up your results table, just because they’ll earn us more money.