Different Types of Car Finance

By Matthew Gloag March 21, 2024
Different Types of Car Finance | CarMoney.co.uk

Getting a new set of wheels? Find out what types of car finance options there are before you do anything!

Congratulations! You’ve decided to get a new car. Now comes the question of how to finance it. This guide will unveil the different car finance options in the UK, helping you choose the right deal for your needs and budget.

How Car Finance Works

Car finance allows you to spread the cost of a vehicle over a set period, typically 12 to 60 months, through monthly repayments. Here’s a breakdown of the key players involved:

  • You (the borrower): The individual looking to finance the car.
  • Lender: The financial institution providing the loan (e.g., bank, building society).
  • Broker: We act as an intermediary, connecting you with multiple lenders offering competitive rates for your chosen car finance option.

CarMoney LIMITED is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activity and our registration number is 674094. Representative 17.9% APR. Over 18’s only. CarMoney IS A BROKER NOT A LENDER.

REGISTERED ADDRESS: Pioneer House, 2 Renshaw PL, Motherwell, ML1 4UF, Scotland.Company Number: SC467274.

All finance is subject to status and income. Written Quotation on request. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions.