Car loans

Get my quote
No impact on your credit score

Are you ready to buy a new or used car? A car loan could help you start the journey to owning your car outright. Here we explore what you can expect from a personal car loan and how it differs from other kinds of car finance.

Representative 14.7% APR

What is a car loan?

A car loan gives you the upfront funds to buy your car, letting you spread the cost over time with monthly payments that work for you. You choose the term that fits your budget, making car ownership easier and more manageable. As with any type of finance, it's important to do your research to find the option that works best for you before making an agreement with your lender. Some of the benefits of car loans include:

Buy now, pay over time

Get the car you need today without an upfront payment

Flexible payment plans

Spread out your payments over a timeline that suits you

Manageable costs

Smaller monthly payments keep your finances steady and predictable.

Affordable rates

Enjoy lower interest rates than typical personal loans, so you can save money.

What is a car loan?

A car loan gives you the upfront funds to buy your car, letting you spread the cost over time with monthly payments that work for you. You choose the term that fits your budget, making car ownership easier and more manageable. As with any type of finance, it's important to do your research to find the option that works best for you before making an agreement with your lender. Some of the benefits of car loans include:

Buy now, pay over time

Get the car you need today without an upfront payment

Flexible payment plans

Spread out your payments over a timeline that suits you

Manageable costs

Smaller monthly payments keep your finances steady and predictable.

Affordable rates

Enjoy lower interest rates than typical personal loans, so you can save money.

What is a car loan?

A car loan gives you the upfront funds to buy your car, letting you spread the cost over time with monthly payments that work for you. You choose the term that fits your budget, making car ownership easier and more manageable. As with any type of finance, it's important to do your research to find the option that works best for you before making an agreement with your lender. Some of the benefits of car loans include:

Buy now, pay over time

Get the car you need today without an upfront payment

Flexible payment plans

Spread out your payments over a timeline that suits you

Manageable costs

Smaller monthly payments keep your finances steady and predictable.

Affordable rates

Enjoy lower interest rates than typical personal loans, so you can save money.

How our car loans work

How our car loans work

Whether you’re after your dream car, thinking about switching to electric, or just need a bit more space in the boot, an Oodle Car Loan could help you cover the cost.

Apply Online

Find out if you're pre-approved in minutes

Complete application

You’ll have your money in your account the next working day

Shop anywhere

Buy the vehicle that suits you best, wherever you find it

Get a quote

Get a quote

Representative 14.7% APR

Are car loans secured or
unsecured loans?

When it comes to borrowing, loans generally fall into two categories: secured and unsecured. Understanding the difference between them can help you choose the option that best fits your needs and comfort level. Secured loans involve using an asset as collateral, while unsecured loans don’t require anything as security—but each type comes with its own pros and cons. Here’s a closer look at what each option means for you.

Secured loan

A secured loan is one where the lender uses an asset you own, like a property, as security. If you can’t keep up with your payments, the lender has the right to reclaim the asset.


Mortgages are a common example of secured loans, where the home itself serves as collateral. HP and PCP finance options, while often grouped with unsecured loans, actually work similarly to secured loans.


In these cases, the finance provider owns the vehicle until all payments are made, including any final option-to-purchase fee.


If you’re unable to keep up with payments, they can repossess the car.

Unsecured loan

An unsecured loan, on the other hand, doesn’t require any asset as security.


With a personal car loan, for example, you use the funds to buy the car outright, giving you full control and ownership from the start without any collateral tied to the agreement.


Since there’s no asset backing the loan, unsecured loans often come with higher interest rates compared to HP or PCP products.


This higher rate helps offset the lender’s increased risk in offering a loan without security.

Are car loans secured or
unsecured loans?

When it comes to borrowing, loans generally fall into two categories: secured and unsecured. Understanding the difference between them can help you choose the option that best fits your needs and comfort level. Secured loans involve using an asset as collateral, while unsecured loans don’t require anything as security—but each type comes with its own pros and cons. Here’s a closer look at what each option means for you.

Secured loan

A secured loan is one where the lender uses an asset you own, like a property, as security. If you can’t keep up with your payments, the lender has the right to reclaim the asset.

Mortgages are a common example of secured loans, where the home itself serves as collateral.

HP and PCP finance options, while often grouped with unsecured loans, actually work similarly to secured loans. In these cases, the finance provider owns the vehicle until all payments are made, including any final option-to-purchase fee.

If you’re unable to keep up with payments, they can repossess the car.

Unsecured loan

An unsecured loan, on the other hand, doesn’t require any asset as security.

With a personal car loan, for example, you use the funds to buy the car outright, giving you full control and ownership from the start without any collateral tied to the agreement.

Since there’s no asset backing the loan, unsecured loans often come with higher interest rates compared to HP or PCP products.

This higher rate helps offset the lender’s increased risk in offering a loan without security.

Are car loans secured or
unsecured loans?

When it comes to borrowing, loans generally fall into two categories: secured and unsecured. Understanding the difference between them can help you choose the option that best fits your needs and comfort level. Secured loans involve using an asset as collateral, while unsecured loans don’t require anything as security—but each type comes with its own pros and cons. Here’s a closer look at what each option means for you.

Secured loan

A secured loan is one where the lender uses an asset you own, like a property, as security. If you can’t keep up with your payments, the lender has the right to reclaim the asset.

Mortgages are a common example of secured loans, where the home itself serves as collateral.

HP and PCP finance options, while often grouped with unsecured loans, actually work similarly to secured loans. In these cases, the finance provider owns the vehicle until all payments are made, including any final option-to-purchase fee.

If you’re unable to keep up with payments, they can repossess the car.

Unsecured loan

An unsecured loan, on the other hand, doesn’t require any asset as security.

With a personal car loan, for example, you use the funds to buy the car outright, giving you full control and ownership from the start without any collateral tied to the agreement.

Since there’s no asset backing the loan, unsecured loans often come with higher interest rates compared to HP or PCP products.

This higher rate helps offset the lender’s increased risk in offering a loan without security.

Types of car finance

Alongside car loans there are a range of other car finance options available. Alternatives to getting a car loan include hire purchase, personal contract purchase and personal contract hire.

Hire purchase

Hire purchase (HP) is where you make a regular monthly payment for a car with a fixed interest rate – meaning you know exactly how much you are paying every month. The deposit can be flexible or even not required at all. The car is owned by the lender until you pay the last monthly instalment and the option to purchase fee.

Read more

Personal contract purchase

Personal contract purchase (PCP) allows you to buy a car through fixed monthly instalments, like hire purchase. PCP tends to have lower monthly payments as you don't have to pay the car's total value. But should you decide to keep the car at the end of the agreement you will need to pay a substantial ‘balloon payment’ to purchase it outright.

Read more

Personal contract hire

Personal Contract Hire (PCH) is a flexible leasing option that lets you hire a car for a fixed term with manageable monthly payments and an upfront rental fee. You get full use of the vehicle during the lease, but keep in mind you'll be responsible for upkeep costs. You then return it at the end - there’s no option to buy, making it ideal if you prefer driving the latest models without long-term ownership.

Read more

Types of car finance

Alongside car loans there are a range of other car finance options available. Alternatives to getting a car loan include hire purchase, personal contract purchase and personal contract hire.

Hire purchase

Hire purchase (HP) is where you make a regular monthly payment for a car with a fixed interest rate – meaning you know exactly how much you are paying every month. The deposit can be flexible or even not required at all. The car is owned by the lender until you pay the last monthly instalment and the option to purchase fee.

Read more

Personal contract purchase

Personal contract purchase (PCP) allows you to buy a car through fixed monthly instalments, like hire purchase. PCP tends to have lower monthly payments as you don't have to pay the car's total value. But should you decide to keep the car at the end of the agreement you will need to pay a substantial ‘balloon payment’ to purchase it outright.

Read more

Personal contract hire

Personal Contract Hire (PCH) is a flexible leasing option that lets you hire a car for a fixed term with manageable monthly payments and an upfront rental fee. You get full use of the vehicle during the lease, but keep in mind you'll be responsible for upkeep costs. You then return it at the end - there’s no option to buy, making it ideal if you prefer driving the latest models without long-term ownership.

Read more

Types of car finance

Alongside car loans there are a range of other car finance options available. Alternatives to getting a car loan include hire purchase, personal contract purchase and personal contract hire.

Hire purchase

Hire purchase (HP) is where you make a regular monthly payment for a car with a fixed interest rate – meaning you know exactly how much you are paying every month. The deposit can be flexible or even not required at all. The car is owned by the lender until you pay the last monthly instalment and the option to purchase fee.

Read more

Personal contract purchase

Personal contract purchase (PCP) allows you to buy a car through fixed monthly instalments, like hire purchase. PCP tends to have lower monthly payments as you don't have to pay the car's total value. But should you decide to keep the car at the end of the agreement you will need to pay a substantial ‘balloon payment’ to purchase it outright.

Read more

Personal contract hire

Personal Contract Hire (PCH) is a flexible leasing option that lets you hire a car for a fixed term with manageable monthly payments and an upfront rental fee. You get full use of the vehicle during the lease, but keep in mind you'll be responsible for upkeep costs. You then return it at the end - there’s no option to buy, making it ideal if you prefer driving the latest models without long-term ownership.

Read more

What is the best car financing option for you?

What is the best car financing option for you?

What is the best car financing option for you?

Personal car loan

Personal car loan

Personal car loan

Personal Contract Purchase

Personal Contract Purchase

Personal Contract Purchase

Hire purchase

Hire purchase

Hire purchase

Personal contract hire

Personal contract hire

Personal contract hire

Typical length of agreement:

Typical length of agreement:

Typical length of agreement

Usually 1-7 years

Usually 1-7 years

Usually 1-7 years

Usually 1-5 years

Usually 1-5 years

Usually 1-5 years

Usually 1-5 years

Usually 1-5 years

Usually 1-5 years

Usually 1-4 years

Usually 1-4 years

Usually 1-4 years

Initial deposit required?

Initial deposit required?

Initial deposit required?

No

No

No

Usually but not always

Usually but not always

Usually but not always

Usually but not always

Usually but not always

Usually but not always

Usually but not always

Usually but not always

Usually but not always

Who owns the car?

Who owns the car?

Who owns the car?

You, although you will still need to repay the debt

You, although you will still need to repay the debt

You, although you will still need to repay the debt

The lender or finance company unless an optional final balloon payment is made

The lender or finance company unless an optional final balloon payment is made

The lender or finance company unless an optional final balloon payment is made

The lender or finance company until final repayment plus option-to-purchase fee is made

The lender or finance company until final repayment plus option-to-purchase fee is made

The lender or finance company until final repayment plus option-to-purchase fee is made

The lender or finance company, always

The lender or finance company, always

The lender or finance company, always

Mileage restrictions

Mileage restrictions

Mileage restrictions

No

No

No

Yes

Yes

Yes

Sometimes

Sometimes

Sometimes

Yes

Yes

Yes

Key points to consider before getting a car loan

To access the best deals, you'll typically need a strong credit score and keep in mind that monthly repayments and interest rates may be higher compared to other types of car finance.


Overall, a car loan can be a more straightforward way to buy a car outright - you’ll own it from day one - while traditional car finance options like HP or PCP may offer lower monthly payments, they come with the risk of repossession if repayments aren’t maintained.


Still unsure what sort of finance is right for you? Read our guide to car finance.

No deposit needed, simply borrow the car amount

Own the car outright

(although you still need to repay the debt)

No mileage restrictions

Shop anywhere - Buy the vehicle that suits you best, wherever you find it

Key points to consider before getting a car loan

To access the best deals, you'll typically need a strong credit score and keep in mind that monthly repayments and interest rates may be higher compared to other types of car finance.


Overall, a car loan can be a more straightforward way to buy a car outright - you’ll own it from day one - while traditional car finance options like HP or PCP may offer lower monthly payments, they come with the risk of repossession if repayments aren’t maintained.


Still unsure what sort of finance is right for you? Read our guide to car finance.

No deposit needed, simply borrow the car amount

Own the car outright

(although you still need to repay the debt)

No mileage restrictions

Shop anywhere - Buy the vehicle that suits you best, wherever you find it

Key points to consider before getting a car loan

To access the best deals, you'll typically need a strong credit score and keep in mind that monthly repayments and interest rates may be higher compared to other types of car finance.


Overall, a car loan can be a more straightforward way to buy a car outright - you’ll own it from day one - while traditional car finance options like HP or PCP may offer lower monthly payments, they come with the risk of repossession if repayments aren’t maintained.


Still unsure what sort of finance is right for you? Read our guide to car finance.

No deposit needed, simply borrow the car amount

Own the car outright

(although you still need to repay the debt)

No mileage restrictions

Shop anywhere - Buy the vehicle that suits you best, wherever you find it

Calculate monthly car loan payments

Calculate monthly car loan payments

Calculate monthly car loan payments

The world of car finance can be a confusing one – but we’re here to help simplify things. Use our car finance calculator to help you decide whether car finance could be a good option for you, without affecting your credit rating. The calculator will give you a good idea of what your monthly payments could look like based on how much you’re looking to borrow.


Don’t worry, you’re not committing to anything; this tool is simply a useful guide to help you figure out a budget that suits you best before you complete a full application for car finance.

The world of car finance can be a confusing one – but we’re here to help simplify things. Use our car finance calculator to help you decide whether car finance could be a good option for you, without affecting your credit rating. The calculator will give you a good idea of what your monthly payments could look like based on how much you’re looking to borrow.


Don’t worry, you’re not committing to anything; this tool is simply a useful guide to help you figure out a budget that suits you best before you complete a full application for car finance.

The world of car finance can be a confusing one – but we’re here to help simplify things. Use our car finance calculator to help you decide whether car finance could be a good option for you, without affecting your credit rating. The calculator will give you a good idea of what your monthly payments could look like based on how much you’re looking to borrow.


Don’t worry, you’re not committing to anything; this tool is simply a useful guide to help you figure out a budget that suits you best before you complete a full application for car finance.

Car loans FAQs

How do I get a car loan?

You can apply for a personal loan from your bank, building society or from a specialist finance provider - like Oodle. Every lender will have their own specific requirements and usually you will have to be over 18. You will then need to pass a credit check to ensure eligibility. The credit score required will vary according to the lender – it’s a good idea to review your credit score before you apply for a car loan or another type of car finance.

Can I get a car loan for a private sale?

If you are taking out a personal loan from a bank or building society in order to purchase a car upfront, you are free to buy from a private seller or a dealership as you wish. Keep in mind that you will have less protection with a private sale as you don’t have the same legal rights as when you buy from a business, although cars bought privately are usually less expensive than those purchased through dealers.

What happens if I don’t pay my car loan?

Defaulting on loan repayments will seriously impact your credit score, affecting your ability to borrow in the future. While they can't repossess the vehicle, the debt may eventually be passed on to debt collection agencies or you could be taken to court.

Who is eligible for a car loan?

If you are over 18, you live in the UK and you can afford to make the repayments, then you are in a strong position to be eligible for a car loan. Other factors that affect your eligibility include your credit score, your income, and the specific criteria of the finance provider you choose. 

Who is eligible for a car loan?

Anyone can apply for a car loan, but to be approved you’ll typically need to be over 18, a UK resident, and able to afford the monthly repayments. Lenders will also consider factors like your credit history, income, and their own specific eligibility criteria.

How quickly can I get a car loan?

It can take just a few minutes to find out if you're pre-approved for a car loan from Oodle. Once you complete your application you'll have the money in your account the next working day - ready for you to buy the vehicle that suits you, wherever you find it.

What do I need to apply for a car loan online?

When you apply for car finance, most lenders will carry out credit and eligibility checks to determine if they can offer you a finance agreement. You may need documents to prove to the lender that the information you provided in your application was accurate - although lenders can complete these checks automatically in many cases. The information required may include:

  • Proof of identity – All applicants must be aged 18 or over.

  • Proof of address – Address history from the past three years.

  • Proof of earnings – This could include personal income, and household income if you have dependents such as children.

  • Employment information – Details about your current job, including your role and how long you’ve been employed.