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. They search various companies to see which ones 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 many consumer items, they have become best known for financial products. Many people looking for insurance, credit cards, loans and energy tariffs often search for the best provider on a comparison website.
Should I use a comparison website for car finance?
Comparison websites 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 the available results, giving you options based on the criteria you initially entered.
You can also check out our useful blog that helps you compare the best finance options available.
Will they tell me how much I can borrow?
Comparison websites can help you to understand how much you can borrow. However, they won't tell you the exact amount you are eligible for. Finance comparison websites don't know your personal and financial details, so they cannot give you an accurate quote.
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 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. Check out what to know before applying for a car loan.
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 you want. However, car comparison websites may not check your credit file; if they do, it would only be a soft search and would not affect your rating. Its worth looking at what credit score you need to get car finance before applying.
Before applying, most lenders like Carmoola, do a soft check to see how much you can borrow with them directly. The hard search only takes place when you go through the application process. Therefore, you can search as many comparison sites as you like and see which options are available without impacting your credit score.
Best car comparison websites
There are plenty of car finance comparison websites you can use to get the best deals. They include:
What else should I know about car comparison websites?
A car finance comparison website can help you quickly shop for the best deals. They're helpful because you can get an idea of the different companies 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.
One thing to consider is that not all car finance comparison websites are reliable. Some will show deals based on the commission they have received from the lender. Therefore it's always a good idea to research before deciding which company to go with.
Car finance comparison websites can save you a lot of time when looking for the best deal. With so many available, it pays to check reviews to see which ones are the most reliable. We have provided some of the best comparison websites you can try out above, but don't forget to check out a variety of lenders before making a decision.
Want the best deal on your car finance? At Carmoola, we're proud to offer some of the cheapest finance deals on the market. Rates start from as low as 6.9% APR (at the time of writing), and you can see how much you can borrow without harming your credit score.