UK Car Loans & Finance Guide

Always beware of vendor finance.

Quite often the "car loan" you're applying for at the dealer is not really a car loan.  They are known in the car business as Retail Instalment Sales Contracts, or RISCs  (an appropriate acronym). The dealer signs the RISC with you, then sells it to a bank, or other lender, hopefully at a good markup on the contract.  Sometimes they also participate in the interest rate. So the higher APR they charge you, the more money they make. 

Car dealer financing is not a service they provide for you, it is a product they sell to you. If they can get you a better APR, fine.  Many reputable car dealers do provide market rates. But if they can't get you a better APR, have your own financing ready to fall back on. The onus is on you to check.

The important point is to always get competitive quotes. Take a look at our UK Car Loans Best Buy Table:

Also, take a look at our featured list of popular loan prividers in the UK: