Car Loans
Get money for your new car quickly and easily. Find out what loans you’re eligible for without impacting your credit score.

Here at Asda Money, we’re here to help when you need new wheels. We can help you find car loans from £1,000 - £25,000, allowing you to get on the road as soon as possible.
Search our panel of trusted UK lenders to find the right loan at the right rate for you. You can check if you’re eligible for a loan without impacting your credit score to give you a decision in minutes.
Why choose Asda Personal Loans?
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The Asda advantage
Known for putting value for money at the centre of everything we do
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One simple form…
Receive quotes from a trusted panel of lenders without harming your credit score
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Asda service, Asda value, expert providers
A loan offer that’s right for you and your circumstances
What are the different types of car loans?
If you need a loan for a car, there are plenty of car finance types available on the market. Here’s a simple guide so you can decide which one is right for you.
Personal Loan
If you’re looking to buy a new car, you can ask a bank, building society or lender for a personal loan (also known as an unsecured loan) so you can buy the car in full straight away. If you take out a personal loan, you’ll be given the agreed amount upfront, and you’ll have to pay it back every month over an agreed period of time. Although a car dealership might offer you lower monthly repayments, using a personal loan to buy a car means that the car will be yours as soon as you make the purchase. Asda help search an approved panel of lenders to source a great loan and rate for you.
Personal Contract Purchase (PCP)
A PCP, also known as a lease agreement, is a loan from a car dealership that will help you get a car, but you won’t be expected to pay off the full value of the vehicle. Also, unless you choose to, you won’t own the car at the end of the deal. After paying a deposit and making monthly repayments, you then have the option of giving the car back to the lender as a deposit for a new vehicle. Alternatively, you can choose to pay a large final payment, often referred to as a ‘balloon payment’, to make the car yours.
The price of both the deposit and the repayments will depend on the cost of the car, the interest rate, and how much the dealer thinks they can sell the car for once the agreement is over. Many people pay a deposit of around 10% of the car’s value, however, the larger the deposit you make, the less you’ll have to borrow. You can usually choose the length of your PCP deal too, with most people opting for anywhere between 24 and 48 months.
Personal Contract Hire (PCH)
PCH and PCP might sound similar, however there are a couple of key differences. A PCH is a more suitable option if you don’t want to own the car at the end of your lease, as this type of hire doesn’t give you the option to do this, unlike a PCP. You’ll agree a set period of time and mileage with the car dealer, in which you’ll be set fixed monthly repayments.
As there is no option to pay a ‘balloon payment’ like you can with a PCP, at the end of the contract you simply hand the car back to the dealership. Once you’ve started an agreement, there’s usually not much flexibility to change it though, so you need to be sure that you want the car for the length of time you’ve agreed before signing any contracts.
Hire Purchase (HP)
HP is similar to a PCP, however the car is legally yours after the final payment is made. You’ll pay a deposit, usually around 10%, and then pay off the value of the car in monthly repayments, using the car as collateral. Unlike a PCP, the car is yours once you’ve made your last monthly payment, and there is no option for a one-off ‘balloon payment’.
Most people choose a HP contract of between one and five years, but remember, the longer the term, the more interest you’ll have to pay overall.
What do I need to think about when comparing car loans?
- Research - Before applying for a car loan, explore all of your options and spend some time finding the best loan to suit your circumstances.
- Check the repayment structure - To make loan repayments as stress-free as possible, be sure to thoroughly read your repayment terms and conditions. You don’t want to come across any nasty surprises along the way.
- Carefully consider how long you want the car for - Before considering any type of car finance, think about how long you realistically want to keep the car for. If you want a car for a shorter period of time and you can afford the monthly repayments, then you may want to opt for a shorter loan term to ensure you’re not paying off the loan when the car is no longer yours.
- Question the dealer - Taking out car finance can be a daunting experience, so be sure to question the car dealer if you have any queries or concerns. They may try to offer you additional extras and fees on top of your loan, so don’t be afraid to say no if you don’t need them.
Top Personal Loans FAQs:
- Why choose a Personal Loan through Asda?
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Customers could access great rates from carefully selected trusted lenders, so you can sit back and let us do the leg work. What’s more, when you search for a personal loan, you’ll only have a soft search on your credit history, which means you can check your eligibility without harming your credit score.
Once your loan is approved, you could receive your funds the same day.
- How does it work?
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Asda is in partnership with Aro which is a trading style of Freedom Finance Limited, who are a leading credit broker to offer our customers a different solution to borrowing money and finding a loan. We work alongside Aro so we can provide our customers with the right offer from a panel of handpicked trusted lenders.
With one eligibility check, you can search a panel of carefully selected lenders and provide you with a loan tailored to your needs. Once you have been approved you receive your funds which could be as quick as the same day.
So sit back, relax and let us do the hard work.
- Who are your lenders?
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We have carefully selected a number of trusted lenders to be on a panel. You can search the panel to provide you with the very best offer you are eligible for. Find out more about each of our lenders here.
If you have any questions on our lenders, please call our Customer Service Team on 0333 555 0560 and a colleague will be happy to help.
- How much can I borrow?
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Lenders offer loans from £1,000 up to £25,000 with repayment periods ranging from 1 to 7 years.
- Will applying affect my credit rating?
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No. One of the best things about our service is you get access to a panel of trusted lenders with no credit footprint left on your credit file. When you apply with us, a soft search is completed which doesn’t harm your credit score.
However, if you do proceed with an offer from your search with us, the lender will complete a hard search once you have accepted your offer. This will show on your credit file.
About our trusted provider, Aro
Asda Personal Loans is in partnership with Aro which is a trading style of Freedom Finance Limited, who are a leading credit broker, to offer our customers a different solution to borrowing money and finding a loan. They were awarded Best Consumer Credit Broker in the 2020 Consumer Credit Awards – voted for by customers.
We work alongside Aro so we can provide our customers with their very best loan offer from a panel of handpicked trusted lenders.
With an eligibility check, a panel of carefully selected lenders can provide you with a loan tailored to your needs. It’s also a safe way to find a loan without negatively affecting your credit rating.

Check your eligibility
ASDA Money is a trading name of Asda Financial Services Ltd who are an Introducer Appointed Representative of Aro which is a trading style of Freedom Finance Limited (company number 06297533) of Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. Aro acts as a credit broker and not as a lender and is authorised and regulated by the Financial Conduct Authority (FRN 662079).
Please note: If you take out a loan we will receive commission. This will be a fixed amount or a percentage of the amount you borrow depending on which lender you choose.
Terms and conditions apply. UK residents, aged 18 and over. If you take out a loan or credit card, Aro receive payment from the lender. Aro receive different amounts from different lenders and the payment received will be either a fixed amount or a percentage of the amount you borrow. We will not charge you a fee for our services. If you take out a loan, ASDA Money receive commission from Aro and it will be either a fixed amount or a percentage of the amount you borrow, depending on which lender you choose.