Car finance

Unlike many sites, once you’ve entered your details we’ll be able to show you the exact APR that you’ll be offered for your loan or hire purchase deal - what you see is what you get.

As well as showing you options for exact APR, we’ll show you providers who quote based on representative APR and display the likelihood of acceptance too. Our guide on representative APR vs exact APR explains the difference. 

Knowing the exact APR means it’ll be easier to manage your budget and make sure you get the best deal.

When you take out a hire purchase agreement, you may be asked to pay a deposit and the finance company will own the vehicle until the final monthly payment.

If you use a loan to pay for your new car, you’ll own it outright from the day the money is transferred to the dealer.

Using a personal loan to pay for a new car also means you aren’t restricted where you can buy the vehicle from.

Often HP deals will state that you’ll need to buy the car from a reputable dealer, so you won’t be able to use it for a private sale or potentially smaller dealers.

Before taking out car finance, you need to take into account how much you’re spending, how much you can afford to pay back each month and how good your credit history is.

The great way to compare deals is to look at the total cost of credit as this will take into account the monthly payments, and how long you’ll end up paying back the loan for.

One thing to be careful of when comparing finance deals is that, while extending the period of a loan may bring down the cost of monthly payments, it could also mean you’ll pay more interest overall.

You’ll need to ask yourself a few questions before you start, such as:

• How much can you afford to pay back each month?
• How much do you want to borrow?
• What is your credit history like?
• How long do you want to keep the car?

You can then make sure you’re getting the best deal by comparing all of the options available, and making your decision based on your own circumstances.

Your credit history is taken into account when you apply for car finance.

But even if you have poor credit, or you are completely new to it, it doesn’t mean you’ll be rejected, or that your only option is to take out finance through a car dealer.

Instead, it will probably mean that your monthly payments and / or the amount you repay overall are higher than some of the rates you’ve seen advertised.

And you may only get quotes from a limited number of “specialist” providers.

Take a look at our guide on how to improve your credit rating.

Everyone has a different financial situation, so there's no 'one size fits all' with financing your next car.

To decide the right option for you, it helps to take several factors into account:

• Do you have any savings for a deposit?
• What's your credit history like?
• Are you likely to change your car again within the next three years?
• Have you chosen the car yet?
• Is it a private sale, or through a dealer?
• How much are you looking to spend?

Once you’ve answered these questions, you’ll be in a much better position to choose the best way to finance your next car.

Need more help? Take a look at our car finance FAQs. 

• Your current UK address
• A contact phone number and email address
• Annual income
• General outgoings

Searching for car finance on Confused.com will not affect your credit rating as only soft searches will be carried out.