Loans Choice
www.loans-choice.org.uk
Cheap car loans funded by Hire Purchase, Personal Contract Purchase etc.
Local car loan lenders arranged by county; England only at the moment.
Answers questions like "What is my car worth?" etc.
Buying a Car in the UK
If you are looking for the best way to buy a new car, or best way to buy a used car in the UK, there is a great deal of online information that will help you get the the cheap car bargain you've been looking for. Obviously trying to get a cheap car loan must come second best to getting a cheap car in the first place. If you want to buy or sell a new or used car online, and you are unsure which make or model to choose, there's a great deal of information freely available.
Start at one of the main motoring organisations' websites. I prefer the RAC's site because it is clearly laid out in categories such as "What to Check", "Buying a used car", "Buying outside the UK", "Legal rights - dealer sale" and "Legal rights - private sale".
The Automobile Association has a similar site. You do not have to be a member of these organisations to view this basic information, but members get a discount on services such as car inspections and history checks.
Special Tip
If you are going to buy a brand new car, before you do anything else, check out the target price you should be paying on the What Car site.
You will first need to know what your local dealer is proposing to charge for the car of your choice, either by visiting them personally or by refererence to an advertisement in a local newspaper. You can then visit the What Car site and look up the target price you should be aiming for and the trade-in price for your old car, if you have one, using the calculator provided.
By using this calculator you will know what the lowest price is being charged elsewhere and this information will give you a big advantage when bargaining with your local dealer.
If you are buying a used car, it's generally a good idea to check its history before committing yourself to the purchase. HPI Check is a company that specialises in this work. They will provide information that protects you against clocking (winding back the clock to show a lower mileage), theft, hidden "write-off" damage and outstanding finance. This is most important when buying privately, but it can also protect you from the "Arthur Daleys" of this world who sell a car as having had "one careful lady owner", when in reality, it has been driven by a speed crazed road hog. They will also check how many changes of ownership or keeper the vehicle has had.
Local dealers rarely offer competitive prices for used cars; especially if they are tied to one manufacturer. Take a look at some of the car supermarkets such as Trade Sales or Motorpoint and compare their prices with similar models advertised locally.
Sites such as JamJar, or Fish4 will find you a good deal on a new or used car, or look to Broadspeed with help for cheap new cars. If you have an old car to trade in, no problem, these companies will arrange for a trade-in as well.
Japanese cars such as Toyota, Honda, Nissan, Mazda and Mitsubishi are often manufactured in the UK or other parts of Europe for sale here. But you can import second hand cars that have been made and used in Japan more cheaply than those made and used here. Full details can be found at the Japanese Imports site.
Many cars each month are impounded by the police or customs authorities for various contraventions of the law. These vehicles are sold by auction to members of the public. If you know something about cars, and know a bargain when you see it, you may want to visit one of the local auctions. Details of these can be found at the Government Auctions site.
You will also want to find out how much your old car is worth. Dealers almost invariably use Glass's Guide. This company makes a small charge to provide you with three, condition adjusted trade values (three values, depending on the vehicles condition, that may be offered by a dealer in part exchange) and one retail value. TIP: if you are considering a Vauxhall car you can get the Glass's guide second hand value of your old car (any make) by clicking the "owners" tab and selecting "value your car" There is no charge for this service.
Bad Credit Car/Auto Loans
If you have a poor credit rating you should still be able to get a loan to buy a car. Unfortunately you will almost certainly have to pay a higher rate of interest compared with someone who has a perfect credit rating. However, because you will have to pay more in interest this means that the company that lends you the money will potentially make more profit. For this reason they will be very keen to sign you up. Before commiting yourself to paying high rates of interest on a "bad car credit loan" please read our article on how to improve your credit rating first.