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Buying a car

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Tips for buying a car

Car finance vs car loans

Our finance options

How much could you borrow?

Tips for buying a car

Buying a new car? We'll steer you in the right direction.

Car-buying hints and tips

The first thing you need to do is get your finances into order. Work out a budget and stick to it. Decide whether a personal loan, car finance or cash will work best for you - we could help with that.

If you're buying a used car remember to:

Keep on top of used car market prices
Inspect the car carefully
Bring a friend who knows a bit about cars
Take a test drive
Negotiate the best deal
Make sure the deal is in writing
Transfer the money online or via banker's draft to the seller

Check out more car buying tips from the professionals at The Car Expert

Car finance versus car loans

We want to help you get from A to B. To do that, we've put together an overview of what to expect from car finance options versus car loans.

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Our car finance options

Eligibility criteria applies

Personal Contract Hire (PCH)

Available on new cars

PCH is an alternative method of car finance that is often referred to as leasing and is available on new cars only.

Personal Contract Purchase (PCP)

Available on nearly new and used cars

PCP is an alternative method of car finance that is available on nearly new and used cars.

Personal car loans

Available to NatWest customers

If you want to buy your car outright from the beginning - why not take a look at our personal loan options?

What is Personal Contract Purchase?

NatWest (credit broker) is introducing customers to ALD Automotive Ltd (lender). NatWest will receive a payment if you proceed with a finance agreement. Subject to status. Over 18s & NatWest current account customers with a valid full UK, NI or EU drivers licence.

Initial purchase

If you take out a PCP (personal contract purchase) agreement, you don't pay the full cost of the car upfront, you pay for the depreciation plus interest.

Interest rate

A fixed rate of Representative 5.9% APR, which means that if you’re approved, this is the rate you’re guaranteed to get, no matter how much you borrow (between £2,000 and £60,260).

Ownership

Financing your car means you have options to either hand back (relevant charges may apply), trade in or purchase the car at the end of the agreement with a larger final payment.

What is Personal Contract Hire?

NatWest is introducing customers to ALD Automotive Ltd. NatWest will receive a payment from ALD if you proceed with a PCH agreement. Subject to status. Over 18s & NatWest current account customers with a valid full UK, NI or EU drivers licence.

Initial payment

Once you've picked a car, you'll choose your advance rental amount, starting from as little as 1 month rental, and up to a maximum of 12 months advance rental payment.

Monthly payments

Your monthly payments will depend upon how much you are willing to pay upfront, how long you'd like to lease the car for, and how many miles you'll drive each year.

Bear in mind

You won't own the car at the end of the agreement, and if you go over the agreed mileage, you'll be charged a pence per mile fee. Whilst warranty comes as standard, maintenance packages are available as an add on in one manageable payment per month.

Is a personal loan right for me?

To apply, you must be 18+ and a UK resident with either a NatWest current account (held for 3+ months), credit card or mortgage (held for 6+ months). Credit card and mortgage customers must apply online or by phone.

Purchasing the car

With a personal loan, the funds will be paid straight to your bank account, you will then be able to purchase the car of your choice from the dealer or seller of your choice.

Ownership

The car will be yours as soon as you purchase it, so there are no mileage restrictions or fees for damage above fair wear and tear to worry about.

Bear in mind

As you will own the car outright, you’re fully responsible for upkeep, MOT, Road Tax, and car insurance. You will also pay back the full amount that you borrow.

Representative 3.4% APR for loans between £7,500 and £19,950.

Other loan amounts are available at alternative rates. Our rates depend on your circumstances and loan amount and may differ from the Representative APR.

Find out if you'll be approved

If you're thinking about taking out a loan to buy your next car, use our quick quote calculator to see how likely you are to be approved without affecting your credit rating.

See how much you could borrow

Buying a car

Tips for buying a car

Car finance versus car loans