Car loans from 7.8% APR
Looking to buy a car but need help with the upfront cost? A personal car loan lets you own the car outright from day one. Check your eligibility without affecting your credit score.
Representative Example:
£7,500 loan repayable over 36 months. Monthly payments of £281.47. Rate of interest 17.9% p.a. (fixed). Representative 22.8% APR. Total amount repayable £10,132.92 (includes loan fee of £445).
From 7.8% to 48.9% APR £1,000-£25,000 over 1-5 years available.
Visit our Fraud awareness page to learn more. If you think you have been a victim of fraud, please contact Action Fraud
Fast
Get your money today
Friendly
100,000+ reviews on Trustpilot
Safe
Secure and encrypted
Authorised and regulated by the FCA
Get a car loan with Lendable
- Own your car from the moment you buy it
- Borrow the right amount from £1,000 to £25,000
- Most approved customers get their loan in under an hour
Why choose a Lendable car loan
Own your car outright
With a personal car loan, the car belongs to you from the moment you buy it, not at the end of a finance agreement. You won’t be restricted on mileage, you won’t face wear-and-tear inspections, and there’s no balloon payment at the end.
Competitive rates
A personal loan can be cheaper than getting a car on finance. The rate you’re offered is based on your individual profile, so it’s worth checking your eligibility to see what’s available to you.
Quick and simple process
The application takes minutes. Get a decision online with no paperwork and no phone calls. Most approved customers receive their car loan in under an hour.
How to get a car loan
Check your eligibility
See if you’re likely to be approved and what rate you’d get without affecting your credit score. If you decide to go ahead with a full application, a hard credit check will be carried out.
Choose your loan amount and term
Borrow from £1,000 to £25,000 over 1 to 5 years. Pick the combination that gives you a monthly payment you’re comfortable with.
Buy your car
Money is sent directly to your bank account at which point you can buy your car, which you’ll then own outright. You then make monthly repayments at the agreed rate.
Car loan vs. car finance
A personal car loan is an unsecured loan. The money is lent to you based on your financial situation, not secured against the car. That’s the key difference from car finance, where the finance company owns the vehicle until you’ve finished paying.
| Personal car loan | Hire purchase (HP) | PCP | |
|---|---|---|---|
| Who owns the car at the start? | You | The lender | The lender |
| Do you own it at the end? | Yes | Yes | Only if you make a final balloon payment |
| Can you buy from a private seller? | Yes | No — dealerships only | No — dealerships only |
| Deposit required? | No | Usually | Sometimes |
| Mileage restrictions? | No | No | Yes |
| Secured against the car? | No | Yes | Yes |
In short: a personal loan suits buyers who want full ownership and freedom from restrictions. Hire purchase offers a path to ownership with the loan secured against the vehicle, which may be more accessible for some credit profiles. PCP works for people who prefer lower monthly payments and are happy to hand the car back or pay a lump sum at the end.
Can I get a car loan with bad credit?
Yes. A credit score is only one part of the picture; lenders also look at your income, regular outgoings, and overall financial situation. So even if your score isn’t where you’d like it to be, it’s worth checking your eligibility.
It will depend on how many loans you already have and how much credit you’re using overall. Personal loans, debt consolidation loans, credit cards and store cards will have an effect.
That said, car loans for customers with lower credit scores typically come with a higher interest rate. Checking your eligibility uses a soft search and won’t affect your credit score.
Things to consider before taking out a car loan
Think about the total cost of ownership
On top of your loan repayments, factor in insurance, fuel, road tax, MOTs, and maintenance. Make sure you can afford the full cost of running a car, not just the loan.
Borrow only what you need
The more you borrow, the more interest you’ll pay. Research the car you want and what it typically sells for so you don’t borrow more than necessary.
Choose your term carefully
A shorter term means higher monthly payments but less interest overall. A longer term reduces the monthly cost but increases the total amount you’ll repay.
Remember that cars depreciate
If you sell the car before the loan is paid off, you may get less than your remaining balance, especially in the first year or two.
Plan for changes in your circumstances
Make sure you can keep up repayments even if your income drops or your costs increase.
Car loan FAQs
What’s the difference between a car loan and car finance?
With a personal car loan, the money goes into your bank account and you buy the car yourself, so you own it outright from day one. Car finance (hire purchase or PCP) is an agreement where the finance company owns the car until you’ve made all your payments, and sometimes a final lump sum. A personal loan gives you more freedom: you can buy privately or from a dealer, there are no mileage restrictions, and you can sell the car whenever you like without needing anyone’s permission.
How do I get out of a car loan?
If you have a personal car loan, the only way to clear it is to repay the balance in full. If you can’t afford to do that from savings, selling the car is an option. If the car has depreciated below your remaining loan balance, you’ll need to cover the rest out of pocket.
If you’re on car finance (HP or PCP) rather than a personal loan, you have more options. Under the Consumer Credit Act, you have a right to voluntarily terminate an HP or PCP agreement once you’ve repaid at least half the total amount owed, and you return the car. Alternatively, you could take out a personal loan to settle the finance balance and own the car outright — effectively switching from car finance to a car loan.
Can I get a car loan at 18?
Yes. The minimum age for most personal loans in the UK is 18. You’ll also typically need to be a UK resident with a current account at a UK bank or building society. Being eligible to apply doesn’t guarantee approval, lenders will assess your income and financial commitments to make sure the loan is affordable for you.
Will taking out a car loan affect my credit score?
Any loan application that involves a hard credit check can cause a small, temporary dip in your credit score. After that, the effect depends on how you manage the loan. Making every payment on time builds positive credit history, which helps your score over time. Missing payments does the opposite. Many lenders offer an eligibility check using a soft search first, which lets you see whether you’re likely to be approved without any impact on your score.
Do I need a deposit for a car loan?
No. A personal car loan doesn’t require a deposit, you borrow the full amount you need and repay it in fixed monthly instalments. This is one of the key differences from hire purchase, which usually requires a deposit, and PCP, which often involves either a deposit or a trade-in. That said, if you have savings you’re willing to put towards the car, borrowing less means paying less interest overall.