1. Home
  2. Loans
  3. Car loan

Loans for new and used cars 

Get a loans decision online in minutes

We've worked with Freedom Finance to carefully select a panel of lenders with competitive rate loans.

  • Borrow £1,000 to £25,000, over 1 to 7 years
  • Check your eligibility for a loan before you apply without affecting your credit score
  • Rates range from 3.4% to 39.9% APR 
  • Get a decision in minutes 
The Co-operative Bank and Freedom Finance act as brokers not lenders. We both receive commission if your application is successful - this varies depending on the lender but it won't affect the cost of any loan.

Freedom Finance

Representative example

A £4,000 personal loan over 3 years at 10.1% APR representative (fixed) with repayments of £128.43 a month. Total charge for credit will be £623.56. Total amount repayable is £4,623.56. Annual interest rate is 10.1% fixed.

The rate you may be offered will depend on your personal circumstances, the loan amount and the repayment term. Credit is subject to status and application.

How to search and apply for your car loan in 5 easy steps

  1. Complete one quick and simple application.
  2. Wait a few seconds while Freedom Finance carries out a soft credit check - this won't affect your credit score.
  3. Compare quotes from our carefully selected panel of lenders and choose the best one for you (subject to eligibility and status).
  4. Apply for your loan. Your chosen lender will carry out a full credit check.
  5. If your loan is approved, your chosen lender will let you know when you'll receive your funds.

Before you get started

  • Credit is subject to affordability checks and eligibility checks by Freedom Finance and any lenders you might apply with.

  • If you're paying off existing debt with a loan, you might extend the terms of the debt and increase the total amount you pay back.

  • If you find a loan you'd like to apply for, your chosen lender might carry out a full credit check.

To continue, please confirm that you:

Get a quote with Freedom Finance

Can I get a loan for a car?

Understand your chances of getting a competitive loan for a car in minutes by checking your eligibility online.

When you search for a loan, a soft credit search is recorded on your credit report, but this is only visible to you and lenders can't see it. If you decide to submit your car loan application once you’ve reviewed your loan offers, your chosen lender will carry out a hard search, which other lenders will be able to see and can impact your credit rating.

A personal loan can provide you with the lump sum of cash needed to buy a car outright, either from a car dealer or a private seller. Getting a loan to buy a car allows you to budget, as your repayments, including the interest rate, will be a fixed monthly amount until the loan is paid off.

Make sure that you add additional costs of a car, such as insurance, tax, maintenance and MOTs to your budget, as this may impact how much you can afford to borrow.

Who can apply for a loan?

To apply for a loan you have to be at least 18 years of age, be a UK resident and have an annual gross income of £10,000 or more. Your gross income is your income before any deductions, such as tax.

Will the car be mine once I have repaid the loan?

Yes, unlike other types of car finance, such as personal contract hire or hire purchase, you will get instant ownership at the time of purchase.

With many car-financing plans, the car will belong to the finance company until the end of the contract. When you buy a car with a personal loan however, the car itself is not used to secure the loan, meaning the car ownership belongs to you.

Can I sell the car if I need to?

Yes, if you buy a car with a personal loan, you can sell the car if you need to. Keep in mind that you still have to repay your loan. You may also get less than you paid for your car, should you sell it. This means that you may not be able to repay all of your loan with the money you get from selling your car.

Can I get a loan to pay for car repairs?

Yes, if you are eligible for a personal loan, you may be able to get a loan for big expenses such as car repairs. However, depending on the cost of the repairs, there may be other, more cost effective, borrowing options available to you, such as an overdraft or a credit card.

Got more questions?

Not the right borrowing option for you?

It's important to consider other borrowing options depending on how much you want to borrow and how long for. We have other borrowing options that might better meet your needs. Whether or not these borrowing options are available to you will depend on your circumstances.

A credit card

We have three different credit cards available to apply for online that may meet your borrowing needs

See our credit cards

An overdraft

If you have a current account, you may be able to apply for an overdraft, or an increase to your existing overdraft

See our overdraft