Cheapest UK car loans available today

This article talks about some of the cheapest UK car loans which are available in the market today.

Cheapest UK car loans picEven with the credit crunch today the car finance industry is booming at its all time high. No matter what, people need cars and they need companies to finance their car purchases.

While there are dozens of companies which provide UK car loans, these would not necessarily be the cheapest UK car loans available in the market.

Finding the cheapest UK car loans is not really difficult especially if you have a stable credit store and a regular income.

car loan girlThe first thing that borrowers need to understand is that car financers like finance companies, building society or banks all work for profit.

These establishments earn their profits by charging a rate of interest on the loans provided to you.

However, it is still possible to find the cheapest UK car loans with only a little research.

What would the rate of interest depend on?

The first thing to understand when you are looking for a car loan is how the rate of interest is calculated for each borrower. There are a number of factors which are taken into account by the financer in order to come up with a rate of interest.

There are loan sharks still looming in the market today which charge exorbitant interest rates so it is necessary to know how much interest rate should normally be charged in your particular case.

The rate would depend on:
  • The amount of loan borrowed
  • The loan period
  • The credit history of the applicant
  • The employment status of the applicant
  • The deposit that you would be paying
  • Secured or unsecured loan etc.

Based on the above mentioned points the rate of interest will then be calculated.

Based on the information given below, financers that provide the cheapest UK car loans in the market today are as given below:

  • Alliance & Leicester- Alliance & Leicester are one of the most well known financers in the UK today. Their typical APR is 7.9% based on a loan tenor of 24 to 36 months. This rate can vary for different individuals.
  • Halifax- Halifax charges an APR of 9.9% typically on a loan tenor of 12-60 months for a loan amount of £3,000 – £50,000.
  • Barclays- Barclays is one of the most reputed and established financers in the UK today and they normally charge an APR of 9.9% on a loan tenor of 12-60 months for a loan amount of £3,000 – £50,000.
  • Satander- Satander normally charges an APR of 10.1% on a loan tenor of 12-60 months for a loan amount of £3,000 – £50,000.
  • Conister Finacial Group, Close Group Brothers and Black Horse Finance Company too all charge an APR of 10.1% on their UK car loans.