{"id":75397,"date":"2017-12-19T12:37:42","date_gmt":"2017-12-19T12:37:42","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?page_id=75397"},"modified":"2026-01-20T09:11:43","modified_gmt":"2026-01-20T09:11:43","slug":"car-loans","status":"publish","type":"page","link":"https:\/\/www.finder.com\/uk\/car-loans","title":{"rendered":"Compare car loans and finance options"},"content":{"rendered":"

Warning:<\/strong> late repayments can cause you serious money problems. See our debt help<\/a> guides.<\/p><\/div><\/article>

What is car finance?<\/h3>

Car finance, often referred to as vehicle financing, can be a convenient and flexible way for individuals to acquire a new or used car. It can allow borrowers to spread the cost of their vehicle over a set period, with various options such as personal contract purchase (PCP), hire purchase (HP), or car leasing<\/a>, making it easier for people to access the car of their dreams while managing their budget effectively.<\/p>

What types of finance are available?<\/h3>

The cheapest way to buy a car is to buy it outright without borrowing money. If you can save a regular amount and only make the purchase when you’ve built up enough money, then you won’t pay a penny in interest. Sometimes that’s not an option, however, in which case you can consider car finance. Car finance is the process of funding a vehicle purchase over a set period of time.<\/p>

If however you do need to borrow in order to purchase your next car, then remember that in general terms, the more you borrow, and the longer the period over which you borrow it, the more you’ll end up paying in interest. If you can afford to, make part of the payment using your own money in order to reduce the amount you need to borrow.<\/p>

If you aren’t buying a car outright with cash, then there are a few different ways to fund your purchase. Here are some popular options:<\/p>