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Car Loans

There are so many different types of car loan and that can make things very confusing when choosing how to pay for your next car. We want to help you make the right decision. That’s why we offer a soft search quote, so you know how much you can borrow and the APR within 3 minutes, without it affecting your credit score.

At RAC Loans we think car finance should be simple, transparent and free from hidden charges. We have two different types of loan to help put you in your next car:-

RAC Personal Loan

Borrow up to £35,000 spread over 1-7 years** with a fixed monthly amount - it's simple and straightforward

Borrow £7,500 over 48 months from just £198.22 per month*

Representative example: fixed 12.9% APR Representative based on a loan of £7,500 repayable over 48 months. Monthly repayment of £198.22, total amount repayable £9,514.65.

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RAC Flexiloan

Borrow up to £35,000, set your monthly payments spread between 24 and 48 months and choose your final repayment - it’s like PCP finance but without the excess mileage charges, and you own your car from the start.

Borrow £7,500 over 48 months from just £158.09 per month*

Representative example: fixed 12.9% APR Representative based on a loan of £7,500 repayable over 48 months with a final repayment of £2,625. Monthly repayment of £158.09, total amount repayable £10,055.23.

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Compare car loans

See how an RAC Car Loan compares to typical car finance such as personal contract purchase (PCP) or hire purchase (HP).

RAC Personal Loan RAC Flexiloan PCP HP
No upfront deposit
I own the car from day 1
My car can't be repossessed
Fixed monthly repayments
Fixed final lump sum
No excess mileage charges
No charges for excess wear and tear

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Approved funds within 3 days

Fixed monthly repayments

Quote won't impact your credit score


Frequently Asked Questions

Q. Am I eligible for an RAC Personal Loan?

For an RAC Personal Loan you must be a UK resident aged 21 and over with a minimum annual income of £15,000.

Q. Am I eligible for an RAC Flexiloan?

For a Flexiloan you must: - be aged between 21 and 75, be a UK resident for a minimum of 3 years, have a minimum annual income of £15,000, have a UK Personal Bank Account and be a homeowner.

Q. How much can I borrow with an RAC Personal Loan?

For a personal loan you can borrow between £1,000 and £35,000.

Q. How much can I borrow with an RAC Flexiloan?

For a Flexiloan you can borrow between £3,500 and £35,000.

Q. Will a quote impact my credit record?

No.

Q. How does RAC Personal Loan work?

With an RAC Personal Loan you tell us the amount you want to borrow and the term. You pay fixed monthly repayments until the end of the agreement.

Q. How does RAC Flexiloan work?

With RAC Flexiloan you tell us about the vehicle you are going to buy, the amount you want to borrow and the term. You can then choose the deferred final repayment you would like to make. You will pay fixed monthly repayments. At the end of the monthly payments you have options;

A. pay the final repayment amount

B. refinance the final repayment amount, 

C. sell your car and use it to pay off your final repayment, so you’re ready for your next car.

 
Q. When will I receive my money?

If your loan application is successful, funds will normally be transferred into your account within 24 hours after we receive your signed loan documents.

The world of car finance can be confusing to drivers that haven't used this service before. Learn about the most important terms and what they mean here.

  

Car finance can be a good method of purchasing a vehicle, but you need to work out whether this is right for you before committing to a contract. Find out more here.

  

The end of a car finance deal can leave you with some tricky decisions to make for you and your vehicle. The RAC is here to guide you through this process.

  

Understanding the different types of finance packages available will help you get the best deal for both your individual needs and your wallet.

  

Hire purchase is a method of car finance that has become increasingly popular in recent years. Learn more about whether this is suitable for you here.

  

Personal Contract Purchase (PCP) is a popular way of financing a car. Learn about the benefits of this type of loan, plus any potential risks, here.

  

* The rate you’re offered will depend on your individual circumstances. All loans are subject to status and available to UK residents aged 21 and over with a minimum annual income of £15,000. The interest rate offered will vary depending on our assessment of your financial circumstances and your chosen loan amount. If you are declined for an RAC Loan, you may, subject to status, be offered a loan from our partner Fluent Loans Ltd. To see how your data will be used, view the RAC Loans Privacy Policy.

** Terms over 60 months only available on balances over £15,000.

RAC Loans is a trading name of RAC Financial Services Limited who are acting as a credit broker. Registered in England and Wales no. 5171817. Registered office: RAC House, Brockhurst Crescent, Walsall, WS5 4AW. RAC Financial Services Limited is authorised and regulated by the Financial Conduct Authority. RAC Loans are provided by Shawbrook Bank Limited, Registered Office: Lutea House, Warley Hill Business Park, The Drive, Great Warley, Brentwood, Essex CM13 3BE. Registered in England, Company Number 388466. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

© 2018 RAC Motoring Services. All rights reserved.