7 reasons to choose a Novuna Personal Finance car loan

You might want to get a car loan for all kinds of reasons. It’s most likely you’ll want to get your hands on the steering wheel of your new car quicker, or you want to opt for a more expensive model you don’t quite have the ready cash for.

In this article, we’re listing out the main reasons our customers choose a Novuna Personal Finance car loan.

1. The process is quick, simple and easy

Understanding the difference between car finance and a personal loan can be a challenge. And then you have to decipher the various different car finance options on offer, and whether they’re the right choice for you.

Many people opt for a car loan as a simpler alternative. Our online car loan application process takes just a few minutes to complete, with customers getting an instant decision on their application. If accepted, once the credit agreement has been signed, customers will have the money within two working days. All that’s left to do is keep up to the monthly repayments, which will be the same every month.

Fixed-rate unsecured car loans are simple to understand and, with Novuna Personal Finance, you can rest assured our friendly customer support are always on-hand to help should you need them.

One of our customers, Jean, told us: "Finance options are so complicated. With Novuna it was easy – from the simplicity of the application to understanding the repayment period, how much the loan will cost each month and the overall cost of the loan.”

Find out how Jean drove away in a new family car thanks to a Novuna Personal Finance loan.

2. Car loans are flexible

A car loan is less restrictive than other forms of finance. You can choose whether you buy a used or new car. You can buy from a dealership or from a private seller. You can pick the manufacturer and model of car without it impacting your loan offer. Furthermore, there’s no time limit. You can take out the loan when you’re ready, and shop for your car at leisure (though do remember you’ll still need to make your monthly loan repayments).

You can use your car loan in different ways, too. For example, you could use a loan to top-up your deposit or to boost your funds if you don’t quite have enough cash to buy the car you want outright. This could give you access to your dream wheels that would otherwise be unaffordable.

There’s also the option to use your car loan to pay for car repairs or those must-have accessories.

For Claire, it was important she had a safe, reliable vehicle as she’s a registered childminder. A car loan gave her the option to shop around and find the most suitable vehicle for her needs. She said: “A friend recommended Novuna for being reliable, with great rates, so I applied and got accepted!”

3. You need a car ASAP

If you suffer a breakdown or an unfortunate accident, you may find yourself in need of a new car as soon as possible. Hunting for the best finance deals can be a slow and frustrating process, and you might not want to be restricted to the cars available on a dealer’s forecourt.

When you successfully apply for a loan, the money could be yours within two working days – and often much sooner. With the money in your bank account ready to go, you can start shopping for your new car straightaway.

As an NHS worker often liaising with members of the community, Jodie relies on her car for work. Her car was unfortunately written off in an accident and she needed to find a new one quickly. Applying for a car loan gave her access to the money she needed quickly, so she could start shopping for a suitable car. She told us: “I pretty much live in my car so it was important to find a new one straightaway. A car loan from Novuna allowed me to find a new car ASAP so I could get back to doing the job I love.”

4. Drive away as the owner of a vehicle

When you use a personal loan to buy a new car, you’re essentially entering into negotiations as a cash buyer. This means you’ll buy the car outright and become the legal owner from the get-go.

Owning a car comes with loads of benefits:

• Drive without restrictions – no worrying about going over your allocated mileage
• Keep your car for however long you like, or swap it for a new one when you’re ready
• Customise or modify your vehicle

As our car loans are unsecured, your car won’t be put up as collateral. The lending decision is based on your personal and financial circumstances, credit history, loan amount and term. If your loan application is accepted, you’ll be given the cash you need directly. This allows you to buy a car upfront so you’ll own the vehicle straightaway - all you need to do is make your monthly repayments to your loan provider.

For one of our customers, Jason, it was important to take out a personal loan to buy a van outright as he had some exciting plans! He transformed his VW into a campervan, so he and his family could enjoy travelling together. None of this would have been possible without a personal loan, as he needed full flexibility on the van’s modernisations. Read Jason’s story to find out more about his bespoke van conversion.

5. No need to worry about a deposit

Get your dream car without a deposit. That’s right, when you take out a car loan you won’t need to spend a penny upfront if you don’t want to. You can simply apply for a loan for the car’s full purchase price, whereas you’ll need to put down a deposit if you choose to go down the car finance route.

Chelsea needed a new car quickly when her old car broke down. She was able to apply for a car loan for the money she needed, without the stress of finding a large chunk of money upfront for a deposit. She told us: “My Novuna loan allowed me to get my dream car within budget. It was much cheaper than finance through the car company!”

6. You can take out a loan to buy a car for someone else

There are lots of different reasons why someone might want to buy a car for someone else, the main one being a parent buying a child their first car.

While it’s not legal to take out car finance on someone else’s behalf, a personal loan could allow you to buy a car for someone else as a gift. This gives parents the option to buy a car for their child, where perhaps the child wouldn’t be in a financial position to buy a car or take out a loan themselves. This hopefully goes without saying - you must consider the full risks of taking out a loan to pay for someone else’s assets. Taking out a loan is a big financial commitment and must be considered seriously.

Elaine used her personal loan to help her daughter-in-law purchase the car she needed for work. “Unfortunately, she couldn’t afford one herself, so I wanted to help her,” Elaine said. “Novuna offered good rates, clear terms and conditions, simple applications and quick decisions.”

7. Car loans can work out cheaper than finance

The cheapest way to buy a car is to pay for it outright, as you won’t need to pay any interest charges. Finding that amount of money upfront can be a challenge for a lot of people, though, which is why car loans and finance are so popular. But which is cheaper?

Whether you're accepted for both loans and car finance will depend on your affordability (whether you have sufficient income to comfortably make your repayments) and credit history. For those with a good credit score, the interest rates you’re offered on a car loan could be cheaper than car finance.

Remember that you won’t need to put down a deposit or pay a final fee/balloon payment when you take out a car loan, either. While this means your monthly repayments might be higher and you could pay slightly more interest overall, you won’t need to give away a large chunk of money to own your car either. This could make a car loan a more affordable option overall.

Shah told us that he thought it was cheaper to take out a loan rather than buy on finance. “When I applied for the loan, I was offered the rate of interest and repayment terms that I expected. I compared this with other options and, after deciding I was happy with the terms, I took the loan out.”

Could a car loan be the right option for you?

You could borrow up to £35,000 over 2 to 7 years, putting you straight in the driver’s seat. Take a look at our car loan calculator to find out how much you might need to repay each month to borrow the money you need.