Car loan from 8.1% APR

Looking to buy a car but need some help with the upfront cost? A car loan could be the answer. Get started with our eligibility checker (it won’t affect your credit score).

  1. Get a quote without impacting your credit score

  2. Borrow ÂŁ1,000 - ÂŁ25,000

  3. Competitive rates from 8.1%

  4. Most approved customers get their loan in less than an hour

Representative Example: Assumed borrowing of ÂŁ7,500 over 36 months at 32.5% APR representative. Monthly cost of ÂŁ312.15. Total amount repayable of ÂŁ11,237.40. Interest rate of 27.0% p.a. (fixed) and total fees of ÂŁ450.00. From 8.1% to 49.9% APR. ÂŁ1,000-25,000 over 1-5 years available.

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Illustration showing characters around a successful loan quote interface
Illustration showing characters around a successful loan quote interface

Why choose Zable for your car loan

Own your car outright

With a personal car loan, the car belongs to you from the point you purchase it, as opposed to at the end of a car finance agreement. You won’t be restricted on how many miles you can drive and you won’t have an additional purchase fee to pay at the end.

Competitive rates from 8.1% APR

We offer some of the most competitive car loan rates in the market, with APRs starting from just 8.1% for qualified applicants. Our personalised approach means you get a rate based on your individual financial profile.

Quick and simple process

Our streamlined application takes just minutes to complete. Get an instant decision online with no paperwork and no lengthy phone calls. Most customers receive their car loan in less than an hour after approval.

How do car loans work with Zable?

A personal car loan with Zable is unsecured. This means the money is lent to you based on your creditworthiness and financial situation, rather than being ‘secured’ against the car itself. Follow these simple steps to get started:

  1. Use our online eligibility checker

    See if you're likely to be approved without affecting your credit score. Note: Once you decide to move forward with a full application, we will complete a hard credit check which can affect your score.

  2. Customise your loan to suit your needs

    Select a loan amount from ÂŁ1,000 to ÂŁ25,000 and a loan term from 1 to 5 years.

  3. Tell us where to send the money

    Money is usually sent to approved customers within the hour, directly to your bank account.

  4. Buy your car

    You can now buy the car of your choice. You become the legal owner immediately, so you can sell it or modify it without needing our permission. You repay us in monthly instalments at the pre-agreed rate over the term of your loan.

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Illustration showing the three easy steps to a loan
Illustration showing the three easy steps to a loan

What is a car loan?

A car loan is typically an unsecured personal loan that you use to buy a vehicle. It allows you to spread the cost of your car purchase over a set period in exchange for paying interest to the lender. Once you use the loan to make your purchase, you own the car.

This is different to car finance, where the lender owns your car until you make your final payment. 

What is car finance? 

While a personal car loan means you own your purchased car outright, car finance means the lender owns the car during the contract period. The main types of car finance are:

  1. Hire purchase (HP)

    This is where you pay a deposit and then make monthly repayments plus interest. Once you’ve made your final repayment and paid an ‘option to purchase’ fee, you own the car.

  2. Personal contract purchase (PCP)

    Here you pay a deposit and then make smaller monthly repayments in alignment with the value the car loses during the loan term, plus interest on the full value of the car. Once the loan agreement ends, you can either return the car or make a ‘balloon payment’ to own it.

Which is best for me: A car loan or car finance?

Whether you should opt for a personal car loan or a financing agreement really depends on your specific needs. Use the comparison table below to make an informed decision.

Personal car loan

Hire purchase (HP)

Personal contract purchase (PCP)

Who owns the car at the start?

You

The lender

The lender

Do I own the car at the end of the contract?

Yes

Yes 

No (unless you make a final ‘balloon payment’)

Can I buy from a private seller?

Yes

No (dealerships only)

No (dealerships only)

Is a deposit needed?

No

Usually 

Sometimes (or trade-in)

Are there mileage restrictions?

No

No

Yes

Secured against the car?

No

Yes

Yes

In summary, a personal loan may be best for those who want full ownership and the freedom to drive without mileage limits or wear-and-tear inspections. 

Hire purchase suits those who want a path to ownership but prefer to secure the loan against the vehicle, which may make it more accessible for those with a lower credit score. 

A personal contract purchase may be best if lower monthly payments are more important to you, you enjoy upgrading to a newer model every few years, and you’re comfortable with mileage restrictions.

If you already have a car financing agreement in place, you may have the option to use our Switch & Save car refinancing service.

Can I get a car loan with bad credit?

At Zable, we believe your credit score shouldn’t be the only thing that defines you, which is why we take a broad view of your financial situation, looking at your income and spending habits alongside your credit history. 

So, whether you have excellent credit or are rebuilding after financial difficulties, your application will be individually considered.

This approach allows us to offer a competitive car loan interest rate to a wider range of customers, with APRs from 8.1% to 49.9% depending on your personal circumstances. 

Generally, those with a lower credit score can usually expect to see higher APRs than those with good credit. For more information, check out our loans for lower credit scores. 

illustration of a dark blue card with credit score in front of a night time backdrop
illustration of a dark blue card with credit score in front of a night time backdrop

Things to consider before taking out a car loan

Taking out a loan can be a significant undertaking, as is car ownership more generally. Here are some important things to consider before you move forward. 

1. Think about the total cost

On top of your car loan repayments, you’ll need to pay for car insurance and fuel, as well as maintenance costs like MOTs and repairs. Be sure you can afford the total cost of owning a car, not just the loan.

2. Decide how much you need to borrow

The more you borrow, the more interest you’ll pay. Do your research before taking out a loan so you have a good idea of what car you want and how much it will cost you. This way you don’t end up borrowing more than you need. 

3. Think about the loan repayment period

If you can afford higher monthly repayments, opt for a shorter loan period as this means you’ll pay less interest overall. The longer you borrow for, the more interest you’ll pay.

4. Consider that cars lose value 

Cars usually lose their value over time - this is called depreciation. If you think there’s a chance you’ll want to sell your car before you’ve paid your personal loan off, you may end up getting back less than what you still owe, particularly because you pay interest on the loan.

5. Prepare for changes to your finances 

Have a plan in place to ensure you can afford your repayments and the general cost of owning a car, even if your financial situation changes. For example, if you have a child or your income drops. 

6. Weigh up your options

While a personal car loan suits those who want to own their car outright, there are other car financing options available, such as hire purchase (HP) and personal contract purchase (PCP). You can also consider leasing a car, where you rent a car via a monthly fee and return it at the end of the contract period.

Financial expert, Adam McAllister

“Before taking out a personal loan to buy a car, it’s important to be aware of something called 'negative equity’. This is when the car’s depreciated resale value is lower than your remaining loan balance, meaning you’d need to clear the remainder of your debt out of pocket. It’s something to consider if you intend to sell the car quickly after purchase.”

Adam McAllister - 5 years in financial services

FAQs about car loans UK

To get a car loan with Zable, first check your eligibility without impacting your credit score. You can then choose to make your official loan application, picking a loan amount and repayment period that suits you. This official loan application will trigger a hard credit check, which can cause a temporary dip in your credit score.

At Zable, approved customers usually receive their money within a few hours.

Yes, it is possible to pay off a personal car loan early with Zable. Doing this could save you money on interest compared with paying it off over the full term.

Yes. To be eligible to apply for a Zable car loan you need to be at least 18 years old. You must also live in the UK and have a current account at a UK bank or building society.

There’s no magic number when it comes to taking out a loan, particularly at Zable, where we look at your credit score along with your current income and spending habits to build a better picture of your financial situation. Though car loans for bad credit individuals may be obtainable, the general rule of thumb is that the higher your credit score, the better the rate you’re likely to be offered.

Yes, any reputable auto car loan provider will check your credit score.

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