Affordable Car Loans: Best Car Finance Companies in the UK

The importance of the best car finance companies in the UK is immense, especially for automobile buyers. It may be quite challenging to get a brand-new car for cash. A suitable car loan can be a great help in this regard.

This blog is appropriate for giving them a brief understanding of car loans and reliable providers.

Understanding Car Loans in the UK

A car loan, also known as an Auto Loan, is a credit you can borrow from any bank or financial institution. It helps you purchase a car without paying the total amount on the first go. However, you can only make the downpayment and apply for a loan for the remaining amount. It is required to be paid in equal instalments, as per the pre-determined contract with the lender.

Types of Car Loans

The company car finance can be of various types. They are explained as under;-

• Personal Loans

This is an unsecured loan, and you need to repay the borrowed amount after a specific period. The interest rate is fixed and comparatively higher than other types of loans. However, the chances of degrading the credit score are low in this case. The approval rate is faster and better.

• Hire Purchase

In this system, you first provide a deposit amount. Eventually, you pay the remaining amount in equal monthly instalments. However, you can only become the car’s legal owner if there is a full settlement.

• Leasing

This is not a purchase but a leasing agreement you sign to use the car. You have to pay periodic payments for such use, and you are bound to return the vehicle to the original owner at the end of a fixed period.

• 0% Finance

This involves a higher down payment option. However, the loan will be free from any interest. Like personal and hire purchase options, you will repay the loan in monthly instalments here.

• Personal Contact Purchase (PCP)

Under this loan agreement, your borrowed amount will cover the vehicle’s depreciation. You can avail this option for first-hand and second-hand vehicles.

Importance of Affordable Car Loans

LMI households can find it quite difficult to bear the high-interest costs of auto loans. Moreover, it is not possible for middle-class people to buy a car in cash. Therefore, affordable car loans are pretty significant in their lives. They can be termed a promising wealth benefit for the masses.

Criteria for Choosing the Best Car Finance Companies

Here are the primary considerations for choosing the best car finance companies in the UK.

• Interest Rates

This is the first criterion for determining the best car finance companies. Of course, you will choose the most affordable option from various deals. Check out the features of a loan, benefits, tenure, and the interest rate to select the favourable one.

• Repayment Terms

Car finance must have a flexible repayment term. It will allow you to fix the duration at your convenience. Hence, you can pay as per the suitability of your budget.

• Customer Service

Undoubtedly, a good finance company should prioritise customer queries and satisfaction and ensure transparency in transaction processing.

• Reputation and Reviews

A finance company’s reputation depends primarily on its customers’ reviews and feedback. Therefore, it should provide favourable customer support services for positive reviews.

Top 8 Car Finance Companies in the UK

1. Advantage Finance Limited

Get full coverage for all sorts of vehicles, such as motorbikes, cars, vans, etc. It gives you payment flexibility on a Hire Purchase basis up to an amount of £15000.

Key Features:

• Loans for vehicles up to a mileage of 120,000
• Vehicle must not be beyond 15 years
• Hire Purchase flexible payment option
• The car finance company does not offer any warranty
• Sale is not possible till the expiry of the loan agreement

Pros

• Coverage of all types of vehicles
• Flexible payment
• Faster settlement

Cons

• No warranty
• Sale is complete only after full repayment

🌎 https://www.advantage-finance.co.uk/

2. Oodle Car Finance

This excellent finance company makes transaction processing easier. It offers attractive car finance deals featuring pre-approvals.

Key Features:

• Pre-approved car finance in minutes
• No impact on credit score
• Online application possible
• Loan credit to the account within a day
• Option of car finance calculator
• PCP Car financing option

Pros

• Faster transaction
• Online facilities
• No credit rating impact
• Suitable for old and new cars

Cons

• Nothing as such

🌎 https://www.oodlecarfinance.com/

3. MotoNovo

Expect a hassle-free vehicle purchase with the help of this company. Indeed, it is one of the best car finance companies, mainly due to customised options. It has a diverse client base and provides innovative auto finance deals.

Key Features:

• Customer-centric approach
• Multiple financing options
• Competitive interest rates
• Innovative loan terms
• Cancellation is available within 14 days

Pros

• Finance through trusted dealers
• Good customer support
• Flexible finance options
• Tailor-made solutions

Cons

• Ownership not transferred with the first instalment

🌎 motonovofinance.com

4. Blue Motor Finance

Blue Motor is a technologically driven company with a nationwide network. It has approved dealers and enables customers to operate their loan accounts online.

Key Features:

• Simple process
• Authorised Dealer Portal
• Access to the Dealer App Store
• Data-driven approach
• Special Customer Portal for any query
• Better risk management

Pros:

• Secured platform
• 24/7 Customer support
• Finance information in one place
• Flee-footed and flexible payment options
• Authentic dealers
• Outstanding service teams
• Reasonable interest rates

Cons

• Grievance handling may be delayed at times

🌎 https://www.bluemotorfinance.co.uk/

5. AutoMoney Motor Finance

Enjoy the automatic credit of the required amount from this finance company within the time necessary. Moreover, it has a direct connection with the borrowers.

Key Features:

• Lower rate of interest if vehicle value is within £25,000
• Specialised finance vendor
• Reputed dealerships

Pros

• Loan sanctioned even if credit rating is poor
• Lending decisions in minutes
• Appropriate financing for used cars
• Affordable interest rates

Cons

• Weak customer support services

🌎 https://www.ammf.co.uk/

6. MoneyWay Car Finance

This is a specialist in lending money to retired borrowers. They can make loans within an hour. The maximum amount of the loan must be within £20,000.

Key Features:

• Direct dealings with brokers and dealers
• Offer quick financial decisions
• Credit of amount within less than an hour
• The agreed loan must not be over £20,000

Pros

• Customers can retire with benefits
• Established team
• Better suggestions for car loans
• Faster paid out

Cons

• Nothing as such

🌎 https://www.moneyway.co.uk/

7 Autolend

This company ensures a favourable experience for all the customers. Loan management is possible through the online portal.

Key Features:

• Finance available through brokers
• Review of applicable quotes
• Loan available up to a maximum of £25,000
• Specific terms provided on personal contact

Pros

• Main focus on customer service
• Easy loan management
• Broker collaboration for application

Cons

• Details of loan terms not provided on the website

🌎 https://www.autolend.co.uk/

8. Specialist Motor Finance

This is a trustworthy team of experts that provides easy loans through authentic dealers. It is also the winner of Feefo’s Trusted Service Award.

Key Features:

• Easy payment terms
• Loans up to £25,000
• Responsible team
• Innovative products
• Alternative motor finance solutions
• Quality services without delay

Pros

• Experienced and dedicated team
• Trustworthy company
• Easy loan approval for low credit scores
• Excellent customer services

Cons

• Top management often makes mistakes in making decisions

🌎 https://www.smfmotor.com/

Conclusion

The best car finance companies in the UK give you the privilege to lend the required money for a new vehicle. The types of car loans are many. You have to check out the features of the plans and decide accordingly.

Choose companies with low interest rates and flexible payment options. Online loan management is also a factor that you should consider.

FAQs