According to the experts, paying for a car outright is the best option. However, for most of us, that might not be an option.

In that case, we have to rely on finance, but some people might not be able to get finance, and others might not want it. In those cases, what do we do?

Using personal loans to pay for your car


Personal loans, sometimes called bank loans, can generally be used for car purchases. If you look at the ‘reason for loan’ sections from most major banks, there is an option for vehicle purchases.

Why would you do this?

According to Cashpanda, you may be able to find a loan from your bank that is significantly better than the terms offered as part of car finance or find some of the best payday loans UK no credit check required to get access to the funds.

If that’s the case, then you should absolutely get the loan from your bank, and use the capital to purchase your car outright.

Pay off your existing car loan to allow you to purchase a new car


There are situations where part exchanging or selling your existing vehicle aren’t appropriate. In these cases, especially if you still owe money on the finance, you might feel stuck.

A small loan to pay off the remainder of your car finance can give you the freedom and mobility to sell it or scrap it, as needed, then more on to purchasing a new vehicle. Read more about scrapping cars at

Pay off a chunk of the loan so you can get car finance

Sometimes you might not be able to get finance on the entire value of your car. In these cases, you could get a loan to pay off a portion of the value of the car, allowing you to get finance on the rest of it.

If that’s the case, make sure you can pay off both loans together. If you’re being denied finance, it might be likely that you can’t afford the loans, at least in the eyes of the banks.


What about worst case scenarios?


What if you have bad credit, can’t get finance, but your car goes wrong and you need it to work.What if you’re more than capable of paying a loan back, but the banks simply don’t recognise it, either because of a poor credit score, or the fact that your income is not certain, for example self employed or cash based.

If this is the case, you might consider short term loans, especially a short term payday loan.

The best payday loans UK no credit check

If you have a bad credit score, you might want to look for the best payday loans in the UK with no credit check.

Rather than checking credit, loans of this type generally require more personal details, including bank accounts and proof of current income.