Car Finance Rate
It’s difficult to say what rate you will be offered without finding some information out about you. Each car finance package you are offered is based on what you tell us about yourself. There are several factors that will determine the interest rate of your car finance agreement, including the amount of deposit you pay at the beginning, how much you want to borrow and of course, your credit rating. In basic terms, the more risky you are to a lender, the more you can be expected to pay.
For example, somebody with an excellent credit rating and a decent deposit is likely to pay less interest than somebody with no deposit and a less than perfect credit score but don’t let that dishearten you. Having a monthly repayment plan can greatly increase your credit score, providing you pay on time and you can pay your car finance loan off early.
What type of car finance should I choose for the lowest interest rate?
Many people choose personal contract car finance as it can work out cheaper then hire purchase, with the added benefit of being able to change your car every 3-4 years. This is a great choice if you’re not wanting to own the car but the option is there at the end of your car finance agreement if you don’t mind paying a balloon payment.
This balloon payment is the difference between the value of the car when you first purchased it and the value of the car at the end of the agreement. The amount of this balloon payment greatly depends on how well the vehicle keeps its value, which can put some people off. If you want to own the vehicle and keep track of payments without any potential surprises at the end, then hire purchase may be for you.
Can I get a better rate if I part exchange my old car?
You can use your old car as a part or full deposit and it’s likely to lower the amount of interest as a result. Having a deposit means that you will borrow a smaller amount and therefore, you’ll automatically be less of a risk in the eyes of a lender, resulting in lower interest rates. Whilst having a deposit is certainly helpful, it’s not always possible for all customers and it may be a good idea to think about the type of car finance you apply for. Each type of car finance has its own benefits and setbacks, depending on what your needs and preferences are.
Low rate vehicle financing
To get a better idea of the car finance loans available to you, visit our car loan summary page and input all the relevant details. It takes 2 minutes and we’ll give you a decision the very same day. We search over 100 leading lenders and match you with tailored results and the best interest rates possible, and we’ll only perform soft searches so your credit rating isn’t affected. If you’re not 100% certain about something or you need anymore information, please feel free to get in touch with the CarFinance Plus team of experts – you could be joining thousands of other CarFinance Plus customers and driving your car away within days.
Set your car loan budget
Representative example – excellent credit Borrowing 7500 over 4 years with a representative APR of 6.9% and a deposit of £0, the amount payable would be £177 per month, with a total cost of credit of £1,035 and a total amount payable of £8,535.