AA Car Loan
Compare AA car loans
The AA might seem like the perfect people to go to when applying for a loan to buy a new car and with rates as low as 3.6% they are certainly worth a look.
The AA’s car loans are provided by Bank of Ireland as unsecured personal loans. This means it can be a fast and relatively straightforward way to access car finance. Getting a loan from a bank to buy a car is often cheaper than taking a finance deal offered by a car dealership.
If you are considering taking out a car loan with the AA, there are some key points with which you should familiarise yourself.
Benefits of AA car loans
Take out a car loan with the AA and you can benefit from:
- Borrowing from £1,000 to £25,000
- Repaying over 1-7 years
- Fixed monthly repayments
- APR from just 3.6%
- No arrangement fee
- No charges for overpaying or paying off your full loan early
Restrictions on AA car loans
When applying for an AA car loan, please remember:
- You must be 21 or over
- You must be no older than 70 when the loan term ends
- You must have been a UK resident for at least 3 years
- You must be employed and earning at least £12,000 per year (self-employed people must have been employed for at least 2 years)
- The APR you are offered will depending on various factors
- If you do not stay on top of your repayments, your credit score could be affected
- Failing to repay your loan may cause your account to be referred to a county court-appointed bailiff to recover the debt
Alternatives to AA car loans
For borrowing in excess of £25,000, you may want to think about a secured loan. This involves putting your home up as collateral against the loan and usually allows you to borrow more over a longer period. You may also get a better APR with a secured loan, although this depends on various factors.
The amount you will be able to borrow and the level of interest you will have to pay is largely down to your loan-to-value (LTV) ratio. This shows the total amount you wish to leverage against your home (including existing debt, such as a mortgage) as a percentage of the market value of your home. The lower you LTV, the more attractive an APR you are likely to receive.
When securing debt against your home, it is important to keep in mind that if you do not stay on top of the repayments you may have to sell your home to cover the debt.
Get the best rates on car loans
There are various other lenders across the market offering car loans, so it is a good idea to shop around to find the best deal. Our car loan comparison tool at the top of this page allows you to quickly and easily examine the best loan offers from all the top providers to see which offers you the best value.