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Unsecured car loan

An unsecured car loan is a personal loan used to buy a vehicle.

Check Eligibility

Provided by the Bank of Ireland UK. AA Financial Services Limited is a credit broker and not a lender.

  1. Home
  2. Car Finance
  3. Unsecured Car Loan
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What is an unsecured car loan?

A personal loan is where you borrow an amount of money from a lender and then pay it back over a set period in monthly instalments.

Your repayments will include interest, so you end up paying back more than the loan amount. A typical unsecured loan is over three to five years, we offer loans from 1 to 7 years depending on the size of the loan. When using an unsecured loan to purchase a car, you own the car from day one.

How does an unsecured car loan work?

With unsecured you can buy your next car. Simply follow the steps below:

  1. Understand your budget Use our calculator and fast checker to understand what your monthly payments might be and see if you are eligible for our unsecured loan product.
    Check your eligibility
    Important: The rate you're offered will depend on your personal circumstances - including your credit rating.
  2. Apply We'll need a few personal details, information about how much you want to borrow and how long you want to borrow the funds for.
  3. Repayment With an unsecured loan, you'll need to make monthly payments to pay back the borrowed funds.

How much will an unsecured car loan cost?

An unsecured loan is a common way to buy a used car. The loan is made up of some key elements.

  • Loan term: If you choose a longer term it will usually mean lower monthly repayments, but naturally this will likely mean paying more interest over the term of the agreement.
  • Loan amount: How much you want to borrow effects the interest (APR) you will have to pay.
  • APR: The lower your interest rate (APR) the less interest you'll have to pay across the term of your loan. The better your credit is, the better chance you will have of getting a lower interest rate.
Require initial a deposit
Usually requires deposit
Own the car on Day 1
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Own car at end of agreement
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Optional final (balloon) payment
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Fixed monthly payments
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Excess mileage charge
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Secured against an asset
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Check eligibility
Bank of Ireland UK adheres to The Standards of Lending Practice which are monitored and enforced by the Lending Standards Board (LSB). A copy of the Statement of Lender and Borrower responsibilities is available here. AA Financial Services Limited (AAFS) acts as a credit intermediary and introduces customers to Bank of Ireland (UK) plc as its exclusive loans provider. AA Financial Services Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Level 3, Plant, Basing View, Basingstoke, Hampshire, RG21 4HG. Registered in England and Wales number 912211. Bank of Ireland (UK) plc is authorised by the Prudential Regulation Authority, and regulated by the Prudential Regulation Authority and the Financial Conduct Authority. Bank of Ireland (UK) plc is incorporated in England and Wales number 7022885. Registered Office: Bow Bells House, 1 Bread Street, London EC4M 9BE. Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc.

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