Personal Car Loan
What’s your monthly budget?
Rates from 9.9% APR. Representative APR 13.9%. We are a credit broker, not a lender.
Representative example: Borrowing £7,500 over 60 months with a representative APR of 13.9%, flat rate of 7.25% and deposit of £0.00, the amount payable is £170.98 per month, with a total cost of £2758.68 and a total amount payable of £10,258.80.
Ownership without the upfront cost
Want a car finance deal that lets you find your car and take ownership immediately? A personal car loan gives you the freedom to make your car-buying decisions as you see fit – and without a contract that’s tied to the vehicle.
What is a personal car loan?
A personal car loan is an unsecured loan that lets you borrow a fixed amount of money to buy a car. Unlike personal contract purchase (PCP) or hire purchase (HP), a personal car loan is not secured against the vehicle. It’s a separate loan that allows you to take ownership of the car straight away. That means you can do what you like with it, with no mileage or condition restrictions like you get with PCP or leasing (PCH).
How does a personal car loan work?
Getting a personal car loan with Hippo Finance is simple. Here’s how it works in five easy steps:
- Fast apply
Use our free soft credit check to find out if you’re likely to be approved for finance with one of our specialist lenders. Applying takes two minutes, won’t affect your credit score* and you’ll typically get a decision in under 30 minutes.**
- Choose your terms
Tell us how much you want to borrow and how long you’d like to repay it. We’ll then let you know what options are available to you.
- Get your funds
If you’re approved and ready to proceed, we’ll make all the arrangements for you and transfer your loan directly to your bank account.
- Get your vehicle (and own it from day one)
Use your loan to pay for your car in full.
- Start making repayments
Make fixed monthly payments over the agreed term to repay your loan.
Our end-to-end service will take care of all the important stuff for you, but if you’ve got any questions, feel free to speak to a member of the team.
Who is a personal car loan best for?
With PCP, PCH and hire purchase all being more common methods of financing a car, it’s a worthwhile question to ask who’s best suited to a car loan. You might want to consider one if:
- You want full ownership of your vehicle from day one.
- You don’t want your loan to be secured against the vehicle.
- You’ve got good credit that offers the best chance of approval and access to the lowest interest rates.
- You want to avoid the sort of mileage and condition limits that come with other forms of car finance.
In truth, there’s a good chance a PCP, hire purchase or leasing option may work for you as well. If you’re not sure what might make the most sense for your requirements, we can help.
Advantages of personal car loan
Immediate ownership
Unlike other car finance types like PCP and hire purchase, the car is yours from day one.
No restrictions
Because you take ownership of the car immediately, you don’t have to stick to any mileage or condition limits that you would with other finance types. The car is yours to use freely.
No lump sum payments
The repayment of your loan is spread across fixed monthly payments, with no upfront deposit at the start or large balloon payment at the end.
Disadvantages of personal car loan
- Higher credit requirements
Because a personal car loan is unsecured, you’ll often need better credit to get approved and access good rates, compared to other finance types.
- Higher monthly costs
Because the total cost of the loan is spread across your monthly payments, they’ll likely be higher than an equivalent PCP or leasing deal.
- Lender exclusions
Some of our lenders – including those who you might be more likely to be approved by – might not offer personal loan options.
Why go for a personal car loan from Hippo Finance?
You could get a personal loan from anywhere to purchase a car outright, so why go for one with us? There are plenty of good reasons to let Hippo Finance help you:
- We work with a select network of lenders
We work with a diverse panel of specialist car lenders. That helps on two fronts: we do the shopping around for you, and we have access to industry specialists who might be more flexible than mainstream banks.
- We specialise in bad credit finance
Even though personal car loans tend to carry higher credit requirements, we specialise in bad credit financing, meaning we work with lenders that give you a better chance of approval.
- We offer expert guidance
We’ve been in the car industry and car finance for over 60 years. We offer expert guidance that can help you find the right financing option for your needs, whether that’s a personal car loan or something else.
- Free soft credit checks
Our free soft credit check gives you the opportunity to find out if you’re likely to be approved for finance without impacting your credit score.*
- End-to-end service
We’re rated ‘Excellent’ on Trustpilot for a reason. Our end-to-end service does all the legwork for you, pairing you with a car finance solution that you can trust.
Find out if you can get a personal car loan with us today
Your journey to financing a new car starts with our free soft credit check. It’s a two-minute, no-impact, no-obligation credit check that will let you know if you’re pre-approved for finance with one or more of our specialist lenders.
Alternatively, pick up the phone and speak to us. Our team can help you find the right answer when it comes to car finance, whether that’s with a personal car loan or another manageable finance deal.
Personal car loan FAQs
How much can I borrow for a car loan?
The amount you can borrow depends on personal circumstances like your credit history, income and affordability assessment. Once we know what these look like for you, we go to a panel of specialist lenders who have their own criteria for approval and how much you can borrow.
Do you need good credit to get a personal car loan?
Not necessarily, but in the case of a personal loan, it certainly helps with chances of approval and access to the best rates.
However, we’re proud to be a bad credit specialist who’ll always look to help those who others won’t. We work with lenders that specialise in finance products (including personal car loans) for customers with less-than-perfect credit. If you’d like an idea of where you stand, a good place to start is our free soft credit check.
Can I pay off my car loan early?
Lenders usually allow early repayment of a loan, but there may be early settlement fees or interest adjustments that come with it, depending on the terms of your agreement. It’s best to get clued up on your lender’s early repayment policy when you first get the loan.
What happens if I miss a payment on my car loan?
You may face late payment fees, and missing repayments often impacts your credit score.
It’s worth noting that we’re here to help if you find yourself in financial trouble, so if you’re struggling with repayment, get in touch, and we’ll look to figure out a solution. You may find your lender can offer some support in instances of financial difficulty, too.