Get into gear with a RateSetter car loan

Our personal loan is a simple and affordable way to spread the cost of your next vehicle purchase.

 

 

 

 

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Why choose a personal loan to finance your next car?

Whether you’re looking to finance a new or used car, a personal loan can be a great option to buy your next vehicle - and can be a cheaper alternative to other types of car finance. If you’ve got savings, you could use those in conjunction with a personal loan to get the car of your dreams.

  • Choose to buy your car from a dealer or private seller.
  • Purchase any type of vehicle - including a motorbike, caravan, van.
  • Own the vehicle outright, which means no excessive mileage charges.
  • No deposits or balloon payments required.
  • No need to worry about credit card acceptance or fees.

Get a quote

Get a personalised rate with no impact to your credit score.

A car loan that puts you in the driving seat

We are an award-winning personal loan provider:

  • Representative 4.9% APR.
  • If approved, you'll get the money the next working day.
  • Make extra payments or settle your loan early with no early repayment fees.
  • Manage your loan online, 24 hours a day.

Get a quote

 

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Representative example: 4.9% APR Representative (fixed). Based on an assumed loan amount of £10,000 over 5 years at an interest rate of 2.3% p.a. (fixed). Monthly repayment £187.94. Total amount payable £11,276.40, which includes a fee of £633.

Loans are subject to status and affordability, the rate and fee you pay will depend on your credit profile.

The loan fee allows us to cover our costs. The loan fee is non-refundable if you settle your agreement early. The only time this is not chargeable is if you withdraw from your credit agreement within 14 days.

Applying for a car loan is simple with RateSetter

6de74253-a3e2-4bce-be5c-a52d787a4e56.png  Personalised quote

Complete a quote, telling us the amount you want to borrow to purchase your new vehicle.

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We will give you a personalised rate with no obligation to apply.

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You will get a response immediately, or usually by the end of the next working day.

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If approved, the money will be in your account the next working day, ready for you to purchase your new car.

Get a quote

You can apply for a RateSetter loan if:

  • You are 21 or over.

  • You hold a UK bank or building society account.

  • You have been a UK resident for a minimum of 3 years.

  • You have a regular source of income.

  • You have a good credit history.

Already have a personal loan
with RateSetter?

You could be eligible to take out an additional loan with RateSetter or take out a new loan and consolidate your existing loan. Sign in and get a quote to check whether you are eligible.

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Frequently asked questions

A car loan spreads the cost of a new car across a number of years - you repay what you’ve borrowed, plus interest, on a monthly basis.

A RateSetter personal loan could be used to pay for a new or used car. The loan is not secured against the car and you’ll own it outright, from the start.

A personal loan could also be a good option to purchase your car at the end of your Personal Contract Purchase contract.

It works in the same way.

Once you know how much you want to borrow to buy your car (this can be the price of the car or the price of the car less any savings you are using) you're ready to apply for a loan.

With RateSetter you can get a quote before you apply, which doesn’t affect your credit file and lets you know the rate you’ll get before you choose to apply.

Once you’ve been accepted, we’ll usually transfer the funds to your bank account by the end of the next working day.

You can then use this money to buy your car directly from a dealer or private seller.

Alongside a personal loan, there are a few other finance options you can consider:

  • Hire Purchase (HP): is when you hire a car from a dealership and pay for the car over a number of months - you’ll only own the car once you’ve made all payments.
  • Personal Contract Purchase (PCP): is a form of car finance. You make monthly payments, but these don’t cover the full cost of the vehicle. At the end of the term, you choose whether to purchase the car paying a lump sum payment or hand it back to the dealership.
  • Personal Contract Hire (PCH): is a long-term car rental - you pay a monthly amount and at the end of the term you hand the car back.

You can find out more about the different types of car finance here.

  • They are usually simple to arrange.
  • They are typically one of the cheapest ways to fund a car purchase – though you will normally need a good credit score.
  • The monthly payments are usually higher than other forms of car finance, but you own the car outright from the start.
  • This means you could swap or sell the vehicle if your needs change.
  • Repayments are spread across fixed monthly repayments, over a term that suits you.
  • There are no annual mileage limits, or additional charges for wear and tear.
  • You can buy any type of vehicle old or new.

Got a question?
We're here to help

Call us on 020 3142 6226 or email us at [email protected].

Before borrowing any money, it’s important to make sure you choose the right product for your needs. Please consider whether you can afford to make the repayments now or in the future.

If you’re worried about debt, you might find it useful to visit The Money Advice Service, which has further information about debt management and offers free debt advice.