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Car loans
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Our best car loans - rates from 5.7%^
Take a look at our best personal loan rates that can be used to fund a car purchase.
Loan Amount | Representative APR* from | Eligibility Checker |
|---|---|---|
£3k - £4,999 | 9.9% (Santander) | |
£5k - £7,499 | 6.5% (People's Choice) | |
£7,500 - £15k | 5.7% (M&S Bank) | |
£15,001 - £20k | 5.7% (M&S Bank) |
*Rates shown are Representative rates, which means that at least 51% of those accepted must get this rate but others can be charged more. Actual rate depends on individual financial circumstances.
Our best loan rate
5.7%^
Most common loan term
5^ years
Average car loan APR
9.4%^
How much could a car loan cost me?
Use our new loan calculator to estimate the cost of your loan with ease.
Loan calculator
Find out what monthly repayments would be, how much you'll pay overall and how much you could borrow.
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Based on the information you supplied, you would be borrowing XXX and repaying the loan in XXX monthly instalments of . The total sum to repay, subject to XXX% APR over the full loan term would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
Afford to borrow
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Based on the information you supplied, you could borrow XXX at a monthly repayment rate of to be paid over XXX monthly instalments. Over the full loan term at XXX% APR, the total amount repayable would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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The maximum personal loan is £50,000
If you need a larger amount, consider a secured loan, which will allow you to borrow more but uses your home as collateral. Be aware that lenders can sell your house if you fail to keep up with repayments.
How to get the best car loan
To get the best car loan deal, follow these simple tips to boost your chances of approval and secure better rates:
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Choose the right loan term
A longer term could cost more overall, but be sure you can afford monthly payments
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Check your credit score
The better your credit rating, the more likely you are to get approved with lower interest rates
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Shop around
Compare deals from multiple lenders to find the most competitive rates and terms
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Use an eligibility checker
Our free eligibility checker helps you see your chances of approval without impacting your credit score.
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Check the small print
Understand what will happen if you miss a payment or want to clear the loan early
How much do people borrow for car loans?
The most common loan amount for those looking to fund a car purchase is between £7,500 and £14,999, based on MoneySuperMarket data from February 2025. Our chart shows how much people typically borrow.
What are my alternatives to a loan?
Personal Contract Purchase (PCP)
With PCP, you pay an initial deposit and then make a fixed number of monthly payments to cover the car’s depreciation.
When the contract ends you can make a final ‘balloon’ payment to own the car or return it to the dealer.
Hire Purchase (HP)
With Hire Purchase (HP) you usually pay an upfront deposit and then make fixed monthly payments for an agreed period. As with PCP, the finance company has security in the form of the car, so if you don't keep up with repayments, they can take it away.
HP differs from PCP because HP covers more than the depreciation of the car. In effect, you are paying it off in small chunks, meaning that ownership is guaranteed after the final payment.
Leasing
Car leasing is a type of car finance that works like long-term vehicle rental.
You sign a contract to pay a monthly fee, which gets you full use of a brand new car for a set period – usually between two and four years. At the end of the contract, you hand the keys back to the leasing firm – and if you’ve stuck to the terms of the contract then there's nothing more to pay.
Our expert says…
The beauty of a car loan is that it gives you the flexibility to buy a new or second-hand car up to your budget, and because you fully own the car from day one, there aren’t limitations on modifications or mileage like with other types of car finance. Undertaking any sort of borrowing is a big commitment though, so make sure it’s the right move before you apply.
Emma Lunn Personal finance expert
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MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Learn more about car financing
Compare car loans with MoneySuperMarket
Comparing car loans couldn’t be easier with MoneySuperMarket. Our eligibility checker tool will show you the loans you are most likely to be approved for – so you can protect your credit score
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Tell us about yourself
We’ll ask you a handful of simple questions about you, and your finances and the car loan you need
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We browse the market
We’ll sift through car loans from across the market, and show you the deals that suit you best
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Pick the loan you want
You’ll be able to sort car loans by overall cost and interest rate, and the likelihood you’ll be accepted
Which is the best bank for a car loan?
Most of the main high street banks offer personal, unsecured loans which you can take out to buy a new or used car. If you apply to a bank for a loan it will conduct a credit search to work out whether you can afford it.
In contrast, if you look for a loan through MoneySuperMarket, we can search the market without it affecting your credit rating. Then you can see which loans from across the market, including the major banks, you might be eligible for before you apply. This cuts down the risk you will be rejected for a loan.
What is a good APR for a car loan?
The APR or interest rate you’ll be offered on your loan will depend on your personal financial situation and your credit score. The better your credit rating, usually the lower the loan rate you’ll be able to get. The best rates are usually also available on larger loans – typically those wanting to borrow around £5,000 or more.
Are car loans secured or unsecured?
You can use a secured or an unsecured loan to pay for a car. With a secured loan you must put up an asset – usually the vehicle you are buying – as collateral, so the loan provider would repossess it in the event you were unable to repay. This does not happen with a personal or unsecured loan.
You can take out an unsecured personal loan or a secured loan through MoneySuperMarket and use it to pay for your new car.
Can I pay off my car loan early?
You can usually pay off your loan early, but you may have to pay an early repayment charge. Ask your lender to send you an early repayment settlement amount so you can see how much the charges will be.
Can you add to an existing car loan?
It isn’t usually possible to increase the amount of your personal loan once it has been agreed and paid out to you. If you need to borrow more you will usually need to apply again for another loan – and the rates and terms and conditions may be different to your first loan.
Can I refinance my car loan?
You’re able to apply to refinance your car loan at any time. But with the proviso that some lenders stipulate that you must have had your existing car loan for a set period of time before you’ll be considered for refinancing.
Can I use my car loan for something else?
Yes, you can generally use a car loan for other purposes, especially if it’s a personal loan not secured against other collateral. However, lenders may prohibit certain uses such as gambling, investing, or illegal activities, so always check the terms and conditions first.
Super save with MoneySuperMarket
You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.
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There are always more ways to save with MoneySuperMarket
So how do we make our money? In a nutshell, when you use us to buy something, we get a reward from the company you’re buying from.
You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.
Reviewed on 22 Apr 2026 by
SuperSaveClub restrictions and T&Cs apply. Click here for details.
Based on MoneySuperMarket data from February 2025
Based on MoneySuperMarket data from February 2025
Based on MoneySuperMarket data from February 2025
Based on MoneySuperMarket data from February 2025
Based on the loan enquirys made on MoneySuperMarket between January 2026 and March 2026.
Lowest representative APR for loans between £7.5k and £15k. Accurate on 20 April 2026. Subject to credit status.
Based on the loan enquirys made on MoneySuperMarket between January 2026 and March 2026.
