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Car Finance Options: Best Picks for Every Buyer
Explore top car finance picks with rates and terms for every need.
Quick Picks
Best overall: Black Horse Car Finance.
Best budget: Oodle Car Finance.
Best for bad credit: Moneybarn Car Finance.
Finance Options via Dealerships
When buying a car through a dealership, finding the right finance option can significantly impact your total cost. Here are two top picks that work through dealerships.
Black Horse Car Finance
Black Horse Car Finance, backed by Lloyds Banking Group, offers an attractive starting APR of 4.9%. This is ideal for buyers who are committed to purchasing through a dealership. While the rates are appealing, they vary based on dealer relationships, which can limit flexibility. If you prefer a well-established option with a wide dealership network, this is a strong contender.
MotoNovo Finance
Similar to Black Horse, MotoNovo Finance provides dealership-based financing with rates starting from 5.9% APR. They offer both hire purchase (HP) and personal contract purchase (PCP) options. However, since applications are only available through dealers, direct application is not possible. This makes it suitable for used car buyers who prefer dealer-assisted financing.
But if you want more control and the ability to compare multiple offers, consider brokers who work with various lenders.
Brokers Offering Multiple Lender Options
These brokers allow access to a range of finance options, providing flexibility and competitive rates.
Zuto Car Finance
Zuto Car Finance stands out by offering rates starting at 8.9% APR with a representative rate of 18.8%. As a broker, Zuto allows you to explore multiple lender options without impacting your credit score. It's a great choice if you want to compare offers through one trusted platform, but remember, the best rates are reserved for those with excellent credit.
CarFinance 247
CarFinance 247 also provides a broker service with rates starting at 8.9% APR. While their representative APR is higher at 19.5%, the platform is praised for its comprehensive service and 4.9 Trustpilot rating. This makes it suitable for those looking to compare offers without being tied to a single lender.
Oodle Car Finance
Oodle Car Finance offers a streamlined online process and a soft credit check, making it attractive for used car buyers. With rates starting at 7.9% APR, it's a practical choice for quick decisions without impacting your credit score. However, the focus on used cars limits options for new car buyers.
If credit issues are a concern, there are options designed specifically for those with less-than-perfect credit.
Finance for Bad Credit Histories
These providers offer solutions for buyers with poor or limited credit, though rates can be significantly higher.
Moneybarn Car Finance for Poor Credit
Moneybarn Car Finance specializes in serving customers with poor credit, offering hire purchase agreements with rates up to 69.9% APR. While the representative APR is 30.7%, the ability to own the car at the end of the term is a significant benefit for those rebuilding credit.
Close Brothers Motor Finance
Close Brothers Motor Finance offers financing options through a large network of dealers and brokers. Established over 150 years ago, they provide competitive rates, but like others, rates depend on dealer margins. It's a trusted choice for those looking for stability and history in their lender.
Whether you're navigating dealership financing, seeking a broker for more options, or need a solution for bad credit, there's a car finance option to match your needs. Speaking of budget picks, we went deep on APR details in Hitachi Capital Car Loans: Is the 6.9% APR Worth It? — worth a read if you want the full breakdown.