Car Loans
Simple Personal Loans can offer you exactly what you are looking for in a car loan, we have a great range of lenders to suit your exact circumstances and requirements. Getting a personal loan for a car is one of the best options if you don’t have any savings or if you would rather spread the cost over a fixed period. We also consider secured and unsecured loans for motorcycles, boats, trucks, private planes and other high-value transport-related products.
Bad Credit Car Loans
It will be hard to find a car loan if you have bad credit as the lenders could see you as a risk. But, that doesn’t mean you won’t be able to find one. If you have bad credit, it is more likely you will be accepted for a secured loan. Secured loans are the type of loan that uses your collateral or asset against another loan amount, so your new car could be secured against your house, boat, motorbike, etc.
These types of loans normally offer better representative apr rates and lower monthly payment because you are securing the new debt against another asset, therefore the lender offers a better rate because they know the loan is guaranteed.
However, please remember with a Secured Car Loan, if you default on your payments or cannot repay the debt the lender can seize the asset you secured against this purchase.
Pros:
- Often a lower interest rate than an unsecured loan
- Easier to get with average or even bad credit history
Cons:
- You do not own the car until the final repayment is made
- Your secured asset is a risk if you do not repay the loan
Car Loan Comparison
You might be able to get your hands on an unsecured car loan, but this depends on your credit score. An unsecured car loan provides you with funds that are not set against any assets or collateral, however, this may cause a slight increase in interest rates compared to a secured loan. The better your credit rating is, the higher your borrowing capacity is, plus the potential of a lower interest rate. Conversely, if your credit is poor, the less your borrowing capacity becomes and the higher the interest rate.
Loan To Buy A Car
Despite considering an unsecured loan or secured loan, you might be wondering whether or not you will need any extra help to get your hands on a loan to buy a car. As we all know, buying a car is expensive, so borrowing a large amount from a lender is always a risk, whether you have a good credit score or not. Sometimes, a guarantor is the best option for us.
Taking out a guarantor personal car loan to secure a car purchase is a useful option to turn too. A guarantor guarantees to pay your debt and demonstrate that your loan will be paid on time if you are unable to make those payments, without having any claim to any assets, like a secured loan. They will also co-sign the loan agreement with you pledging their assets in the event you cannot honour your loan terms.
Your guarantor should be 18 or over with a good credit history, ideally, a homeowner (although this is not compulsory) and they must have good regular income paid into a U.K bank account. If you make payments on time and never default on your agreement, your guarantor will not have to carry out any action or make any payments to the lender.
Pros:
- Higher application approval
- It’s great if you have a poor credit history
- It could boost your credit rating
Cons:
- High-interest rates
- Negative notes on your credit file
- You could lose close family and friends if you break the agreement
Car Loans UK
Did you know that car loans in the UK account for the majority of cars on the road? Car loans are in high demand due to the rising prices of cars in today’s society. It can be quite easy to get your hands on one, especially if you have a good credit score. Here at Simple Personal Loans, our broker service can help you get a car loan in no time.
Car Loan Calculator
Here at Simple Personal Loans, we are a credit broker. This means that we will help you get your hands on your desired loan but it won’t come directly from us. So, unfortunately, we cannot give you an exact car loan calculator which shows you the confirmed loan cost, but our calculator can offer you a rough idea.