Car Loans UK

It is not uncommon to find loan companies advertising low interest car loans, even 0%, Zero percent interest? You'd be a fool not to jump at that? And we're saying that you should jump at it, as long you can handle the term. It is often the case (but not always), that in order to get 0% financing; you will have to agree to a shorter-term loan, sometimes as short as 24 or 36 months. This means that your payments are going to be quite high. Of course, it also means you'll have the loan paid off relatively quickly (compared to the more common 48- to 60-month term). We have put a list together of few other things that may come between you and a 0% rate:

In addition to the usual shorter term of the loan, you have to qualify for that low interest car loan. In most cases, if your credit score is lower than 680, you won't be able to get the lowest rate.

Know that by going for the low interest car loan rate you usually lose the cash rebate. It's one deal or the other -- not both.

In many cases you're better off taking the rebate and getting your car loan elsewhere at a higher rate:

	2.9% Dealer Financing	Take the Rebate & Finance Elsewhere
Car Price	£20,000	£20,000
Trade-in Value	£2,000	£2,000
Rebate	£0	£3,000
Amount Of Loan	$18,000	£15,000
Term (months)	60	60
Interest Rate (APR)	2.9%	5.9%
Monthly Payment	£322.64	£289.29
Total Cost of Loan	£19,358.65	£17,358.49

To figure out which is the better deal between taking the cash rebate or the low APR, use a car loan calculator. Don't forget to try the same calculation taking the rebate and financing with your bank or loan company.

The smart thing to do is to visit the manufacturer's Web site before you go to the dealership so you know what special deals are being offered directly from the manufacturer. Check out some of our recommended low interest car loan sites.