Personal Loan Car Finance Offers
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Car Finance
Rates from 9.9% APR. Representative APR 21.9%
Representative example: borrowing £7,000 over 4 years with a representative APR of 21.9%, an annual interest rate of 21.9% (Fixed) and a deposit of £0.00 the amount payable would be £220.16 per month, with a total cost of credit of £3,567.81 and a total amount payable of £10,567.81. This is an example only, lender fees may apply. All finance subject to status.
Vehicle Price:
£ 7000
Initial Payment (Deposit):
£ 0
To Pay Over:
48 Months
Best Available Rate:
6.9%
Initial Borrowing:
£
Total Cost Of Credit:
£
Total Amount Repayable:
£
48 Monthly Payments of
£
Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.
Representative example: borrowing £7,000 over 4 years with a representative APR of 21.9%, an annual interest rate of 21.9% (Fixed) and a deposit of £0.00 the amount payable would be £220.16 per month, with a total cost of credit of £3,567.81 and a total amount payable of £10,567.81. This is an example only, lender fees may apply. All finance subject to status.
What is Personal Loan
A personal loan car finance is an alternative method of purchasing your next car. Unlike other forms of car finance such as HP or PCP, a lender provides you with the full amount to cover the cost of your new car directly. This is typically unsecured, meaning you do not need to put up any assets such as your house, as a collateral.
Process of your finance application
Finalising
If you are happy, we will finalise the deal with the lender on your behalf.
Enjoy Your Car!
Collect your car from the dealer and enjoy it for the duration of your contract.
How does Personal Loan work?
Here’s a quick example:
Let’s say you want to buy a car worth £10,000 and want to pay it over 48 months. Your insurance, tax and maintenance for this new car would cost you £1000 per year. You want to own the car outright, so you take a personal loan for £14,000 from your lender.
You sign a 48-month contract at 8.9% APR to repay £348 each month.
With the interest, the total amount you would end up paying will be £16,690. Your lender pays you the money directly, and you purchase the car from the dealer. As simple as that.
Comparison of Finance Options
| Finance Features: | Hire Purchase (HP) | Personal Contract Purchase (PCP) | Personal Loan |
|---|---|---|---|
| Requires initial deposit | Optional | Optional |
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| Car is yours at the end of the agreement |
|
Optional |
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| Fixed monthly payments |
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|
|
| Optional balloon (final) payment |
|
|
|
| Avoid excess mileage charge |
|
|
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| Secured against an asset (e.g. a car) |
|
|
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| Support with vehicle issues |
|
|
|
Pros & Cons of Personal Loan Finance
Personal loan interest rates can be better than car finance rates.
You will own the car outright from the start so are free to make any modifications as you wish.
Costs for insurance, tax and maintenance can be factored into the amount you wish to borrow.
There are no mileage restrictions or need to put up assets.
Your car will be the collateral for the finance and may be repossessed should you fail to make your monthly payments.
Relies upon your credit score and the best rates are reserved for those with exceptional, perfect credit scores.
You’ll miss on manufacturer incentives when taking out their own PCP deals.
You won’t be able to easily change your car at the end of your finance agreement and will need to market, sell and negotiate the cost of your next car yourself.
Frequently Asked Questions
Can I pay back my loan early?
Yes. As you are covered under the Consumer Credit Act, you can pay back your loan earlier without incurring excessive repayment charges. This may be more beneficial as you will avoid the interest costs associated with increased monthly payments. You can also shop around for loans that provide you with the option for overpayments.
What happens if my car has an issue?
Unfortunately, unlike HP and PCP finance deals, the responsibility of the car as its owner is yours. Your lender will be unable to assist you and will still expect repayments to be made on time. If your car emerges with a pre-existing fault, your dealer may be able to assist in repairing or replacing your vehicle. Otherwise, repairs are your responsibility.
Do I have to secure my loan against my assets?
No. Most lenders will approve unsecured loans on lower amounts. For higher amounts, and depending on your credit score, your lender may require a collateral in the form of a house, car or similar.
How can I improve my chance of approval?
Check your credit score in advance as a rejection can affect your credit score. Use a soft checker to do so. Borrow lower amounts or offer up a collateral asset – this is a secured loan.
Let's get started?
Getting a Free Quote with Vizion Finance only takes 5 minutes, and will not affect your credit score
Get in touch
Phone:
0203 322 1905
Email:
sales@vizionfinance.co.uk
Business Hours:
Monday to Friday 09:00 - 20:30
Saturday 10:00 - 19:00
Sunday 10:00 - 17:00
