EV ZoneCompare Car Loans
Compare car loans from a panel of UK lenders via Brumble. Buy a car with a personal loan and own it outright from day one. Check your eligibility with a soft search that will not affect your credit score. Representative 29.8% APR (fixed).
Brumble works with ClearScore, a credit broker, to help you compare car loan options from a panel of lenders.
Both Brumble and ClearScore are credit brokers, not lenders.
How Does a Car Loan Work?
Checking your eligibility for a car loan via Brumble is quick and easy. You could borrow between £1,000 and £35,000, with repayment terms from 1 to 7 years.
Tell Us What You Need
Enter how much you want to borrow for your car, choose a term.
See Your Options
A soft search checks your eligibility across multiple lenders. It will not affect your credit score.
Choose and Apply
Pick the offer that works for you then complete your application.
Car Loan Calculator
Use our car loan calculator to estimate your monthly repayments on a personal loan for a car. Enter the amount you want to borrow, choose a term, and adjust the APR to see how the numbers change.
Representative example: If you borrow £5,000 over 36 months at a rate of 29.8% APR (fixed), your monthly repayments would be £211.70. The total amount repayable would be £7,621.20. Total cost of credit: £2,621.20. The rate you are offered may differ based on your individual circumstances.
Why Use a Personal Loan to Buy a Car?
Many used cars are bought using hire purchase (HP) or PCP finance, both of which are forms of dealer finance where the lender holds security over the car until you have paid in full. A personal loan is different. It is unsecured, which means the car is yours from day one. Here is how the three options compare.
Personal Loan
- You own the car outright from day one
- Buy from any seller: dealer, private, auction, or online
- No mileage restrictions
- Usually requires a higher credit score
- Sell the car whenever you choose
- Bundle extras like warranty and insurance into your budget
Hire Purchase (HP)
- You do not own the car until the final payment
- No mileage restrictions
- No balloon payment
- Cannot sell the car until finance is settled
- Finance is secured against the car
PCP
- You do not own the car until you pay the balloon payment
- Typically lower monthly payments than HP or a personal loan
- Annual mileage limits apply, excess charges if exceeded
- Large balloon payment at the end to keep the car
- Finance is secured against the car
A personal loan gives you the freedom to buy from anywhere. You can purchase from a private seller, an auction, or a dealer without being tied to their finance. You also have the flexibility to bundle extras like warranty and insurance into the loan amount. If you would prefer dealer finance with the consumer protections that come with HP or PCP, you can check your eligibility for car finance via Brumble too.
Can You Use a Car Loan to Pay Off a Balloon Payment?
At the end of a PCP agreement, you have a choice. You can hand the car back, part-exchange it for a new one, or pay the optional final payment, known as the balloon, to keep it. This balloon payment can be several thousand pounds.
PCP Term
Balloon Due
Car Loan
You Own It
A personal loan can cover this balloon payment, spreading the cost over a new fixed term with predictable monthly repayments. Once the balloon is paid, you own the car outright and are free to keep it, sell it, or trade it in at any time.
Before taking this route, compare the total cost of the personal loan against the current market value of the car. If the car is worth more than the balloon amount, it can make good financial sense to keep it. If it is worth less, you may be better off handing it back and using the loan to buy a different car.
You can also use a personal loan to refinance an existing car finance agreement. If your current HP or PCP deal has a higher interest rate, settling it early with a cheaper personal loan could save you money overall. Check the early settlement figure on your current agreement before applying.
Used Car Loans
A personal loan is especially well suited to buying a used car. Dealer finance is often only available on newer models or approved used stock, and some PCP deals are restricted to cars under a certain age. A personal loan has no such restrictions. You can buy any car, of any age, from any seller.
This is a significant advantage when buying privately. Many of the best-value used cars are found through private sellers, online classifieds, and car auctions, where dealer finance is not available. A personal loan puts you in the same position as a cash buyer, which can also give you stronger negotiating power.
Before buying any used car, it is worth checking the vehicle's history. Brumble offers a premium vehicle history check that covers outstanding finance, write-off status, mileage discrepancies, and more.
Car Loans with Bad Credit
A lower credit score does not automatically mean you cannot get a car loan. When you check your eligibility via Brumble, a soft search is carried out across a panel of lenders. Some of these lenders specialise in lending to people with less than perfect credit histories.
The rate you are offered will depend on your individual circumstances and may be higher than the representative APR. A higher rate means higher monthly repayments and a greater total cost, so use the calculator above to check what you can afford before applying.
If you are declined or unhappy with the rates available, there are steps you can take to improve your credit score before trying again. Check your credit file for errors, make sure you are on the electoral roll, pay existing bills on time, and avoid making multiple credit applications in a short period.
What Car Can You Afford?
Under £5,000
Older models, higher-mileage cars, or a reliable first car. This range covers many used hatchbacks, small SUVs, and city cars from brands like Ford, Vauxhall, Volkswagen, and Toyota. Insurance and running costs tend to be lower for smaller, older cars.
£5,000 to £10,000
Lower-mileage used cars, newer models from volume brands, or an older premium car. This is one of the most popular borrowing ranges for car buyers.
£10,000 to £15,000
Nearly new cars, approved used vehicles, or mid-range models with low mileage. Lender competition is strong in this range, which can mean better rates.
Over £15,000
New cars, premium brands, electric vehicles, or low-mileage nearly new models. The rate you are offered will depend on the amount you borrow, the lender, and your individual circumstances.
Only borrow what you need. A car depreciates the moment you drive it away, so borrowing more than necessary means paying interest on lost value. Use our Budget Planner to check what you can comfortably afford.
Electric Car Loans
Electric cars are becoming increasingly popular, but they tend to cost more upfront than their petrol or diesel equivalents. A personal loan can spread this cost over a fixed term, and you own the car outright with no mileage restrictions, which matters for EV drivers who want to maximise range without worrying about excess mileage charges.
For company car drivers, salary sacrifice may be a cheaper way to get an electric car thanks to the low benefit-in-kind tax rate. Brumble covers salary sacrifice in detail in our EV Zone.
Once you have your electric car, running costs are significantly lower than a petrol or diesel vehicle. Explore the EV Zone to compare models, tax bands, and total cost of ownership.
Ready to compare car loans?
Check your eligibility in minutes. One soft search, no impact on your credit score.
Check Your EligibilityRepresentative 29.8% APR (fixed)
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Car Loan FAQs
Common questions about car loans, eligibility, and how borrowing for a car works.