Secured Car Loans
Borrow with us and you could receive your loan in a few weeks
Borrow up to £250,000
Flexible terms from 3-25 years
We consider all credit histories
Employed, self employed, pension and benefit income
We're a direct lender, so there are no hidden broker fees
Representative Example: A secured loan of £43,000 payable over 9 years on a fixed rate of 10.43% for the first 5 years, followed by a variable rate, currently 12.00%, would require 60 monthly payments of £651.19 followed by 48 monthly payments of £670.67. The total amount repayable would be £71,263.56, this includes interest, an arrangement fee of £1,999 and a processing fee of £499. The overall cost for comparison is 12.9% APRC representative.
How it works
Organising your finances can sometimes feel stressful, but we want to make it as easy as possible for you.
In just 3 simple steps you could have the money in your bank account. All you need to do is:
1: Enquire
Complete our quick and easy online enquiry form. Alternatively, you can speak to an advisor instantly by calling us or starting a live chat.
2: Your details
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
3: We'll do the rest
We'll help you complete the paperwork and any other supporting documentation required.
What do our customers say?
You can relax knowing you’re working with a highly rated team. But don’t just take our word for it, visit our website and read our reviews – they speak for themselves.
Using a secured loan for a car
A secured car loan is a secured loan taken out to purchase a new or used car. This type of loan is secured against your property, so if you are unable to repay the debt, your home is at risk of being repossessed.
Using your home as security means lenders will have more confidence in you as a borrower to repay your debt, in comparison to an unsecured loan which requires no collateral. This means that you may be able to borrow a larger amount of money with a lower interest rate in comparison to an unsecured loan, even if you have a bad credit profile. However, you should only borrow as much as you need and you should think carefully about securing any debt against your home.
Secured loans can also be used for other things, for example secured wedding loans.
Can I get a secured car loan with bad credit?
Yes, secured car loans aren’t just for people with good credit. We can also provide loans to applicants that have had previous adverse credit or have bad credit histories.
If you have struggled with debts in the past, have a bad credit score or have previously been declined by other lenders due to your credit profile, it doesn’t mean that every lender will turn you down.
Whilst some lenders may not be able to assist people with bad credit, at Central Trust, we consider all credit histories, despite historic issues such as defaults, CCJ’s, missed payments and those on debt management plans or IVA’s.
Unlike other lenders, we look at the bigger picture. So, if you have a poor credit score and are looking for a secured loan to finance a car, contact us today and we’ll do our best to help you.
Why choose Central Trust?
35 years' experience
We are one of the UK's longest established specialist lenders trading since 1988 giving us over 35 years' experience providing secured loans, homeowner loans and second mortgages.
Simple application process
You can call our team directly on 0800 980 6273 (Mon-Fri:8:00am-7:00pm) or you can enquire online at any time using our quick and easy online form.
All credit considered
We understand that life happens and there's more to your story than your credit score or recent pay slip. So if you have a less than perfect credit score we could still help.
Is a car loan the same as finance?
A secured car loan and car finance are the two main ways of borrowing money to pay for a car.
A secured car loan is a form of borrowing with the intent of purchasing a car outright. This type of loan is secured onto your property. Whereas car finance refers to paying for a vehicle over a set period of time instead of buying it outright in cash. Common finance agreements for purchasing a car are hire purchase (HP) or personal contract purchase (PCP).
Case studies
Home improvement loan
For an applicant with poor credit history.
Secured loan
For a self-employed client with limited trading history.
Debt consolidation loan
For an applicant with multiple lines of credit.
Ready to enquire?
Talk to our qualified mortgage experts now
Friendly UK based advisors
Enquiring won't affect your credit rating
Fast turnaround times 7-10 days is possible
No phone menus - immediate contact from our advisors
We are a direct lender, so we'll work with you from start to finish
FAQ's
It is important to keep in mind that purchasing a car is expensive as there are multiple other costs that will need to be covered to run a car. For example:
- Car tax
- Car insurance
- Repairs
- Fuel costs
Other things to consider when taking out a secured car loan are:
- Alternative purchasing options – using savings to pay for a car
- Price of the car – can your secured loan cover the price of the car?
- The interest rate of the secured loan – are you able to afford the repayments on time?
- Term- consider the term of the secured loan and how long you expect to use the car for
Before taking out a car secured loan you must consider these points before making your decision to ensure that you avoid any finance problems in the future.
If you can afford the repayments, a secured loan could be used, as they can be a quicker alternative to purchasing a car in comparison to saving the money. Plus, secured loan lenders usually offer lower interest rates than unsecured loans, which could make your monthly payments and overall loan cheaper.
You may also not be able to borrow as much with an unsecured lender and they tend to have shorter repayment terms than a secured loan lender. However, other finance options are available and you should consider all alternative options including unsecured loans or car finance.
It is important to note that it may not be appropriate to secure the loan for a longer term than you expect to use the car for. Also, if you struggle to meet the repayments, you will be risking your property. But repossessing a property is often the very last resort for a lender, they will always try and help reach an agreement with you before things get that far.
The amount you want to borrow depends on the type of loan you choose. If you are looking to borrow a large amount of money, a secured loan may be a better option. This is because, unlike a unsecured loan, a secured loan uses your property as security and you therefore considered less of a risk by a lender.
It’s important to mention that you should only borrow as much as you need to need to, the more you borrow the more interest you will pay.
There are other factors that can affect the amount you can borrow from a lender:
- Your income
- Existing debts
- Lender’s LTV ratio
- Your credit score
- Direct debits or other loans
We have 30 years of experience in helping people find the right type of loan for their circumstances, specialising in secured lending for people that have previously been turned down by high street lenders.
If you are considering taking out a secured car loan and would like to discuss your options with a qualified advisor, call us on 0800 980 6273.