Want to hit the road? Apply for a car loan

Need to borrow to get a car? We offer car loans, which are a popular option. Here’s how they compare to hire purchase, personal contract purchase and car leasing.

Car loan: no deposit and you’ll own the new or used car outright

With a car loan from us, you could borrow up to £50,000 to buy a new or used car. If you’re approved, you’ll receive the money in your bank account – and can use this to buy your car. You then pay the car loan back in fixed monthly payments over up to 8 years.

Hire Purchase (HP): usually a deposit – you don’t own the car until you pay in full

Hire purchase isn’t something we offer. You’d usually pay a deposit – and then make fixed monthly payments to a car finance company for a new or used car. You won’t own the car until you’ve made the final payment.

Personal contract purchase (PCP): deposit and chance to own car at end of contract

We also don’t offer personal contract purchase. You’d usually put down a deposit and borrow towards some of the remaining value of the car. At the end of the contract, you can return the car, or make a final larger payment to own it.

Car leasing: renting a car with no opportunity to own the car

We don’t offer car leasing. Car leasing is a way to rent a car. You’d usually put down a deposit, then pay each month – normally over 1 to 5 years. You’ll never own the car. 

If you miss a car loan payment, this could go on your credit file – and stay there for 6 years. This could make it harder for you to borrow during this time.

So, please let us know right away if you’re struggling to pay.

The sooner you tell us, the sooner we can try to help you sort things out.

Please use the ‘Chat to Cora’ button (bottom right of this webpage) and type ‘struggling financially’ to start the conversation. Or in your mobile app, tap ‘Help’ to message us and chat to Cora.

Want free, independent debt advice?

As well as speaking to us – which is important – you might find it helpful to get independent debt advice too.

We recommend PayPlan whose friendly service won’t cost you a penny.

You can call PayPlan on 0800 280 2816 (Relay UK 18001 0800 280 2816).

Prefer to get online advice?

Get free debt advice online from PayPlan.

Struggling financially?

Read our tips to help cope with money challenges.

Car finance covers all the ways you can borrow money to own or rent a car – including hire purchase, personal contract purchase, leasing, and car loans.

So, a car loan is just one type of car finance.