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.
Loans are subject to status and affordability. Terms apply.
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.
A car loan that puts you in the driving seat
We are an award-winning personal loan provider:
- Borrow between £1,000 to £35,000 over 1 to 5 years.
- Rates from 6.9% 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.
Representative example: 8.9% APR Representative (fixed). Based on an assumed loan amount of £10,000 over 5 years at an interest rate of 8.3% p.a. (fixed). Monthly repayment £205.62. Total amount payable £12,337.20, which includes a fee of £75. The majority of our customers receive the advertised APR or lower. The maximum APR you could be offered is 29.9%.
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
Personalised quote
Application
Complete a quote, telling us the amount you want to borrow to purchase your new vehicle
We will give you a personalised rate with no obligation to apply
Decision
Money
You will get a response immediately, or usually by the end of the next working day
If approved, the money will be in your account the next working day
You're eligible 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 paid monthly, for example through wages or a pension, of over £16,000 a year.
- you have a good credit history, with no County Court judgements, bankruptcies or debt relief orders on your credit file.
Already have a personal loan with RateSetter?
If you already have a loan with RateSetter you could be eligible to borrow more money. Your total borrowing must not exceed £35,000. There are two ways you can borrow additional money from RateSetter:
- Take out an additional loan.
- Take out a new loan and consolidate your existing loan.
Getting a quote is easy! Sign in to your account and the application form will be pre-populated for you.
Got a question? We're here to help
You can reach us by:
- Email: [email protected].
- Call: 0203 142 6226*
*You may be charged for your call, depending on whether you use a landline or mobile, and the tariff charged by your provider.
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.