Get your hands on a Carmoola Gift Box Learn More

Close-vector

Best Comparison Websites for Car Finance

If you're thinking about getting a new car you may decide that finance is the best route for you. After all, you can spread the cost and maybe buy a slightly safer or newer car than your initial budget would allow – as long as all the finance makes sense and you can comfortably afford the repayments. But should you use a comparison website to discover the best deals available? It could just be a great option, which is why we've put together a list of the best comparison websites for car finance and what you need to know about using a comparison site. 

What is a comparison website?

Price comparison websites are pretty straightforward in that they search a range of companies who provide the best offers. People use them for all sorts of things, from switching utility bills to insurance quotes and, you guessed it, car finance. 

While they exist for loads of consumer items, they have become best known for financial products. Many people looking for insurance, credit cards, loans and energy tariffs often start their search on a comparison website.

Should I use a comparison website for car finance? 

Comparison websites can help you find car finance. Car financing is a type of loan, and these websites specialise in trawling through different providers to see who has the best deals in the market at the time of your search. 

They take into account aspects like interest rates, monthly repayments and length of the loan. A comparison website will then return all of the available results, giving you a range of options based on the criteria you initially entered.  

Will they tell me how much I can borrow? 

Using a comparison website can be a great way to get an idea of how much you can borrow. However, it won't tell you the exact amount. This is because a comparison website doesn't know your personal and financial details. 

When you first search for car finance, they will ask you questions about how much you earn, address details and credit information, but they can't verify those details. Therefore, they can only provide suggestions based on the information you enter. When it comes to applying with a lender directly, how much you could borrow may change based on your actual personal and professional details, and their assessment of your affordability. 

Do they check my credit score? 

When applying for a loan, the lender will check your credit report to see if you can afford the amount that you want to borrow. However, car comparison websites may not check your credit file, or if they do, it would only be a soft search and would not affect your rating. 

Therefore, you can search as many comparison sites as you like and see which options are available without your credit score being impacted. When it comes to applying, most  of the actual lenders do a soft check if you see how much you can borrow with them directly. The hard search only takes place when you go through the application process.  

Best car comparison websites

What else should I know about car comparison websites?

Using a car comparison website can help you to shop around in an easy and simple way. They're helpful because you can get an idea of the different companies out there, and compare their offers in one place. Once you've decided to proceed with a particular lender, you can go through the application process and hopefully find your next set of wheels. 

We’d love to hear your thoughts on this article!

Comments