What to Look for in a Car Loan Quote

6 things to look for in a car loan quote

When shopping around for a car loan quote, you’ll likely come across a lot of jargon. You can use our car finance jargon buster to break down the kinds of terms that you might face in your search.

APR

An abbreviation of annual percentage rate, an APR refers to the full cost of your annual borrowing for a car loan. The higher the APR, the more you’ll pay overall.

An APR differs from an interest rate because it includes all standard fees and charges, as well as any interest you’ll be expected to pay. Therefore, it gives you an indication of the true cost of your car finance.

The APR must be disclosed before an agreement is signed, so you should always check this out when shopping for a car loan quote.

Comparing the APR offered by different lenders is a good way to compare car finance deals. Remember that the representative APR advertised is a benchmark – not all borrowers will receive it, so you need to check the APR that you’re offered.

Type of finance agreement

When shopping around for a car loan quote, consider what kind of car finance might best suit you.

One of car finance’s main draws for motorists is its flexibility. Different types of car finance agreements are available to suit different drivers.

Not all finance packages will work for everyone: your unique circumstances and needs will determine the right type of car loan quote.

Remember that the length of the loan term will also impact how much you pay in interest. The longer the term, the more you’ll pay back.

Any conditions or terms of the agreement

Different drivers have different priorities, so don’t opt for a ‘one-size-fits-all’ car loan quote.

Some motorists may be happy with mileage restrictions. Others might want to own the car outright, whilst some drivers are happy with the option to own the vehicle at the end of the agreement, or even to hand it back. Alternatively, you can find agreements which don’t require a deposit. It’s also worth knowing that you can face fines with some car finance agreements if you cause undue wear and tear on the vehicle.

When you’re looking for the right car loan quote for you, be realistic about your needs and circumstances, as well as the kinds of terms that will work for you. For example, if your work requires you to make long journeys frequently, choosing a car finance agreement with mileage restrictions may not be suitable.

Poor credit car finance

If you’ve got a poor credit score, you may not be eligible for certain car loan quotes.

Look for a lender like My Car Credit. We offer poor credit car finance to drivers with less-than-perfect credit scores. We combine a wide panel of trusted lenders with a sensible approach to help you get approved for a finance agreement that works for your circumstances.

Used car finance

Purchasing a ‘new to you’ vehicle is a great way of getting on the road without forking out for the sizeable outlay of a more recent car make and model.

If you’re looking for a car loan quote for a used or nearly new vehicle, check if your lender has used car finance available.

There are plenty of options for financing a used or nearly new car, with different agreements available to suit your unique situation and preferences.

Plus, if you’re looking for both your car and car finance in one go, check out if your lender or broker can help you with both. At My Car Credit, we’ve established excellent relationships with a large number of reputable car dealers across the UK, helping you to source your next nearly new car and car finance in one go.

Reputability and size of lender

It goes without saying that you should always establish the reputation of any lender offering you a car loan quote before signing a contract.

At My Car Credit, we’re part of the UK’s largest motor finance broker, Evolution Funding. This gives us access to the largest panel of car loan companies, meaning you’re more likely to find a car finance deal that suits your circumstances.

We’ve also got a friendly and experienced team of Car Credit Specialists who can offer any advice and guidance that you need throughout the process.

Plus, we’re also the ‘Best Broker’ winner for the ninth year running at the Car Finance Awards 2024, so you know you’re in good hands.

Find a car loan quote to suit you today

My Car Credit is dedicated to helping you find the best car loan quote for your needs and circumstances.

We pride ourselves on our speedy, hassle-free online application process. With us, you’ll receive a no-obligation quote in minutes, and any rate you see is the rate you get.

Do the maths today with our free online car finance calculator and get on the road to your next car.