Low Interest Car Finance

What Is Low APR Car Finance?

If you’re new to car finance or find the terminology confusing, you might be wondering what APR actually means. APR stands for Annual Percentage Rate and represents the total cost of borrowing over a year — including interest and any additional fees — shown as a percentage.

A low APR car finance agreement means you pay less interest overall, helping to make your monthly payments and total finance cost more affordable.

Typically, applicants with good or excellent credit are offered the most competitive interest rates, as lenders see them as lower risk. However, thanks to our wide panel of trusted lenders, we can offer affordable low rate APR options to people with a range of credit backgrounds.

How Do I Apply?

Getting car finance online is as easy as 1,2,3…

3. Choose From Hundreds of Cars.

Thanks to our long-standing partnerships with reputable, FCA-approved dealerships across the UK, you can pick a car that fits your budget from a huge selection of quality vehicles.

What Is The Difference Between APR and Interest Rate?

When taking out a car finance agreement, it’s important to understand both the interest rate and the Annual Percentage Rate (APR).

• The interest rate is the cost of borrowing expressed as a percentage, but it does not include any additional fees.

• The APR reflects the total cost of borrowing, including interest plus any fees and charges, giving you a clearer picture of the overall cost.

When comparing low APR car finance deals, always focus on the APR rather than just the interest rate. This ensures you understand the true cost of borrowing and can make an informed decision.

Our Low APR Car Finance Deals:

• Low rates from 11.9% APR* – Save money and pay less interest over the term of your finance agreement.

• No deposit needed – Many of our low APR deals come with £0 upfront, making it easier to get on the road.

• Choose from hundreds of cars – As a broker, we don’t sell cars, giving you the freedom to pick any vehicle within your budget from FCA-approved dealerships across the UK.

• Trusted UK lenders – We work with reputable lenders to provide a wide range of finance options for different circumstances.

• Part exchange your car – Trade in your old vehicle to help reduce the cost of your next car finance deal.

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Why Is Low APR Car Finance Beneficial?

When taking out a car finance deal, it’s important to get a package that suits your circumstances. Low-interest car finance helps you save money by reducing the total amount of interest you pay over the term of your agreement.

A lower APR means more cash stays in your pocket, making your monthly payments more manageable. Using an online broker like UK Car Finance can further help you save, as we have access to some of the UK’s largest lenders and can compare the best rates on your behalf, ensuring you get the most affordable deal possible.

How to Lower Your Car Finance Interest Rate:

At UK Car Finance, we work hard to get you the lowest possible APR car finance deal. However, there are a few steps you can take to help reduce the interest rate offered:

• Check your credit score – Your credit history plays a key role in determining your interest rate. Lenders often reserve the best rates for applicants with good or excellent credit. If you’re unsure of your standing, use our free credit checker to see where you fall.

• Consider your loan term – Longer-term finance agreements can lower your monthly payments, but may increase the total interest paid over the life of the loan. Balancing term length and monthly affordability is important.

• Choose a suitable car – Some lenders may offer better rates for certain vehicles, so selecting wisely can help reduce your APR.

Want to learn more about how car finance interest rates are calculated?

Get Low APR Car Finance Today!