Broker a fourth option for car finance

Simon Gray, of Credo Asset Finance, on the options for financing your car.

Where’s the best place to go and find car finance? I’m sure most people believe they know the answer but I’m also sure, in a straw poll, you’d get a fairly even spread on three main answers:


Car dealer finance.

Bank loan.

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Those lucky enough to have good savings, and with the low rates in savings accounts, ISAs etc, you can’t argue against paying good old-fashioned cash. I would still consider dealer finance where, when buying a new car, you can achieve APRs of 3.9% or less. And consider where a deposit contribution is made – do your sums!

Apart from low-rate deals and deposit contributions, dealer finance can be a bit of a closed shop and often not the cheapest. It can be very easy to arrange, without supportive information to back up an application other than the standard personal questions. Some people don’t believe there’s an alternative and, buying from a dealer and needing finance, use its finance without question.

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Bank loans can be the cheapest option for a straight deal but there are limitations and issues. A quick search of the internet can produce APR rates from about 4.3% which is amazingly cheap considering the market costs in the UK at present. Personal loans are unsecured so take more care in saying yes and will often want bank statements, payslips, accounts (for self-employed), income and expenditure etc. Although banks may agree to lend, they often move their ‘typical’ advertised APR rate up depending on credit scores etc. The other issue with bank loans is inflexibility – often you can borrow a maximum of £25,000, only a straight repayment, no balloon payments etc and there’s effectively only one product.

A fourth car finance option is a trustworthy finance broker where you should get impartial advice – even if the bank/dealer/cash option is better, you are told the same. Our market presence is not widely recognised but a good broker can be invaluable. A full range of finance products, excellent rates negotiated with market-leading lenders and few limitations means it could be the one-stop shop you need.

Credo Asset Finance, is at 85 Yarmouth Road, Norwich, NR7 0HF. Phone 01603 703180, email or visit

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