Illustrative example:Borrowing at a representative APR of 13.9%, annual interest rate (fixed) 13.9%, monthly payments of £170.88 followed by 1 payment of £180.88, total cost of credit is £2,762.80, total amount payable is £10,262.80.
AA Car Finance is provided by Evolution Funding Ltd.
What does this mean for you?
- A decision in minutes
- No impact on your credit file until you accept the loan
- A personal finance adviser
- Free 12 months breakdown cover*
- Large panel of 31 lenders
Car finance explained
We’re on a mission to demystify car finance, make everything more transparent, and clearly explain the basics.
AA Car Finance is here to simplify your next car purchase by allowing you to choose your car and finance all in one place.
When you buy a new or used car on finance, you borrow the money against the car - which means you can get a great rate. Our rates range from 6.9% to 29.9% APR to suit most needs.
We cover the majority of UK dealers and can arrange funding on most cars.
Watch our video on how to apply for car finance.
All AA Car Finance customers get a personal finance adviser who’s by their side throughout the whole process. Just one of the things that sets us apart from everyone else.Car finance explained
Want to know more?
Answers to some of the most common questions.
What is car finance?
Car finance is a credit agreement made between you and the lender which allows you to buy a car. When you buy a new or used car on finance, you borrow the money against the car. Unlike a personal loan, we’ll pay the dealer directly once you’ve agreed all the details. Then you repay a fixed amount each month until the end of the plan.
We can arrange finance for most cars and vans and cover the majority of UK dealers.
Who can apply?
At AA Car Finance, anyone can see if they’re able to get finance within minutes. You just need to give us some information, and we’ll let lenders carry out a soft credit search to see if they can offer you a good deal. This won't affect your credit rating.
Credit is subject to status and additional affordability checks.
How does the application process work?
To apply for car finance with AA Car Finance, you’ll need to enter some of your personal details alongside your budget and/or what car you want. This takes less than three minutes, and will enable our lenders to perform a soft credit search for hire purchase loans. Once we have the right details, we will be able to give you an instant decision with the amount you’ll pay each month, the exact APR, and how much the total cost of the loan will be. If we need more information from you to place you with a lender, we’ll give you a call to discuss.
The quote will be valid for 30 days, so it gives you time to look for your dream car if you haven’t already found it. Once you have decided, you’ll need to provide the details of the car and of your approved dealer. The money will be transferred to the dealer and you’ll receive the deeds to the car when you collect it.