Car Loans

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For many people, a car is essential – but we all know that buying a reliable vehicle requires a significant investment.

  • Simple, easy application
  • We search lenders to get you the best deal
  • 5-star customer service
  • No impact on your credit score
  • No upfront fees or hidden charges
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Are you a homeowner or a tenant?

Fund your new car with a cost-effective car loan from Believe Money

For many people, a car is essential – but we all know that buying a reliable vehicle requires a significant investment. While plenty of loan options are available, it’s difficult to know where to begin. Believe Loans is a broker specialising in finding you a suitable loan agreement.

If you’re struggling to get a car loan due to poor credit or have defaulted on previous monthly repayments, we have access to a catalogue of specialist lenders and can match you with the right one.

A personal loan can help you pay for your dream car

Some of the most popular borrowing arrangements are personal loans (also known as unsecured loans). While some believe that unsecured loans often come with high-interest rates, that’s not necessarily true.

If you have a good credit score and can prove a regular income, you’ll have access to various personal loan options that suit your financial circumstances.

These loans are also beneficial if you can’t afford to pay for a new or used car outright, as you’ll pay a set amount back each month.

How does a personal loan work?

When you apply for a personal loan, your lender will check your credit score and regular income. As unsecured loans don’t require any collateral (such as a house), lenders will factor your credit report into their final decision.

A low score doesn’t necessarily mean you’ll be refused a personal loan, but the interest rates might be higher, and lenders could introduce a shorter repayment term.

If you fail to meet your fixed monthly loan repayments, you could risk court action, as the provider will still want to recover the rest of the loan.

Alternative car finance option

While a personal loan is one of the best, and most affordable ways to purchase a new car, there are alternative car finance options out there:

Use your savings

If you have savings to use, this option is great because you can purchase the car outright without worrying about repayments. Also, you can buy a car you want without factoring in the additional costs that loans add to the initial amount borrowed.

Plus, the other advantage of this option is you can typically negotiate a discount if you’re a cash buyer. On the other hand, if your savings can’t quite stretch to your dream car, they could serve as a deposit, reducing your monthly payments.

Personal Contract Purchase (PCP)

Many people use the personal contract purchase option – especially if they like switching cars every few years. These car loans work differently to personal loans, in that you pay a smaller monthly fee – plus, you don’t have to pay off the loan completely. When the initial loan term ends, you’ll have the option of buying the current car you use, or switching to a new one.

Most dealers have a set deposit, such as £2,000, and you’ll be expected to pay this amount before the term begins. Once the finance company determines how much the car will be worth by the end of the repayment period, you’ll pay the difference.

Pros of PCP cars loans:

  • PCP is ideal if you like to switch cars regularly
  • You won’t have to pay back the total value of the car
  • You have the choice of buying the vehicle when the repayments finish

Cons of PCP loans:

  • You’ll never own the car
  • If you want to keep the vehicle, you’ll need money for the final payment
  • Most lenders have maximum yearly mileage restrictions

Hire purchase (HP)

Hire purchase agreements are one of the most popular borrowing solutions because you don’t need an excellent credit score to access them. In many ways, HP finance is similar to a secured loan because the company owns the car until you pay the amount off in full.

It’s similar to a secured loan because the company will seize the car and use it to recover the outstanding amount if you don’t meet your payment obligations.

One of the good things about HP financing is you don’t always have to pay a large deposit, but you are tied into strict repayment terms as the lender will want to make money back through interest.

Pros of HP loans:

  • They’re flexible
  • Deposits are usually set at 10% of the car’s retail price
  • You’ll own the car when you complete the repayments

Cons of HP loans:

  • You’ll have to factor in the interest rates
  • You’ll lose the car if you don’t meet your repayment obligations

Using a credit card

Another solution to buying a new or used car is to use your credit card. However, it depends on your credit history and if you have access to a 0% card. Some people choose to buy used cars through credit, but you might not be able to buy a new one.

Considering that the average credit limit in the UK is between £2500 to £4000, there are limited options with credit cards.

Also, many people use their credit cards and decide to pay back the money later, which seems fine – but after the 0% interest rate term finishes, you’ll have to pay more.

Personal contract hire

Last but not least is personal contract hire. These agreements allow people to get a brand new or barely used car and pay back a set amount to use it each month. While other car loans work on a pay-to-own basis, PCH agreements mean you only rent it.

Once you pay the deposit, you can choose the maximum yearly mileage allowance and be responsible for maintaining the car. However, it’s a great solution if you want to drive a brand-new car without a big financial commitment.

Pros of PCH:

  • PCH is one of the more flexible options
  • You don’t have to worry about high-interest rates
  • It’s more convenient than a long-term rental

Cons of PCH:

  • You’ll never own the car
  • After the rental term finishes, you’ll need to find a new contract

How to choose the right car loan for your needs

With so many car finance options available, it’s challenging to know which is best for your personal circumstances. Asking yourself the following questions will make the decision a lot easier.

Is owning a car important?

While the idea of PCH or PCP car finance might appeal because of the lower fixed monthly repayments, there’s not as much security as you’d get with personal car loans. You’ll pay a deposit and a set amount back each month, but you’ll have to pay an upfront fee if you want to keep the car after the term ends.

Can you afford to buy a car outright?

Of course, if you can afford to pay for the new car outright, it might be the best way to avoid getting into debt. You won’t need to factor in a monthly payment amount, giving you more financial security.

However, if you don’t have the money to buy a good car, applying for a car loan might be better. Buying a cheap second-hand vehicle just for the sake of having a car might seem like a great idea, but you don’t know what you’re getting and could be wasting your money on a broken car that’s been made to look good.

Find out how much you can borrow with Believe Loans

When you work with a specialist car loan lender like Believe Loans, we’ll help you apply for a car loan, boosting your chances of success. We give you access to a range of providers that offer loans to people with lower credit ratings, making it easier to find a loan that matches your monthly budget and doesn’t put you out of pocket. With us by your side, you always get a better deal.

Zero upfront fees

Did you know that finding a loan could put you out of pocket? Many brokers charge extra payments upfront for arranging the loan, but we make your experience a lot easier with zero upfront payments.

We add our finders fee onto your loan, so you don’t have to worry about budgeting for our service.

We work for you, not against you

When you choose to work with us, we ask you how much you want to borrow and go out of our way to find the best lender for your needs. You can look forward to a personalised quote and lenders who adapt themselves to your requirements.

The main drawback of mainstream loan providers is that they use set eligibility criteria, but our specialist lenders judge each case on a personal basis.

Choose an award-winning team

We dedicate ourselves to customer service, and our commitment to your financial future makes us a successful broker. As an award-winning team, we’re confident that our brokers will find a great deal for you.

We’ll also help you apply online and find the right loan term for your needs.

Get in touch with our team today

The right car loan means you can purchase your dream car without worrying about your finances. We go out of our way to reduce how much interest you pay and find you a lender that lets you pay the car loan early if you choose.

To find out more, book a free consultation today, where we’ll discuss your needs. With just a few clicks of a button, you could be driving off in a brand-new car.

Why Use Believe Money?

Believe Money is an award-winning finance broker dedicated to offering the best range of affordable loan options. Whatever your circumstances or credit rating, we’re committed to getting you the best secured loan interest rates by searching our entire panel of secured loan providers.

Whatever you need a secured loan for, we’re here to help. Our specialist advisors are available Monday to Friday, so if you need any help please contact us online or give us a call on 01302 591 360.

How It works

Step 1.

Simple, easy application

Step 2.

We search our panel of lenders to find the deal that’s right for you

Step 3.

When you confirm your chosen deal, we get your application moving

Step 4.

The money lands in your bank
account – usually within two weeks

We compare loans from our panel of the UK’s top lenders to get you the best deal.


Contact Us

Mon – Thursday 9am – 7:30pm

Friday 9am – 3pm

Call from a mobile or Landline:

01302 591 360