Important disclosure

Compare £20,000 Car Loans in the UK

Your car can show a lot about who you are. For example, an interest in sports cars may say that you value flair and status. If you’re content with a sedan without the frills, you may prefer simplicity and function over form. Or how about going big with SUVs? It’s one way of telling people you love a good adventure!

Looking to get your own car to show to the world? Sure, cash is great, but you can also buy it easily with a £20,000 car loan. Take it from us: it’s convenient and hassle-free. You can approach any lender in the UK, and it’s possible to get their approval instantly. You’ll receive the funds in a matter of days, too. It’s a win because your finances become more flexible, and you get your dream car at the same time!

If you’re a first-time borrower, know that you’re opening yourself up to new and exciting financial possibilities. We recommend beginning with our guide below first, as you’ll need as much information as you can to explore car loans.

Terms from 1 to 10 years. Representative example: 5 year £10,000 loan with comparison rates from 2.8% to 49.9% APR would cost between £10,728 and £27,321, including fees. The interest can vary between £728 and £17,321.

Repayments on a £20,000 car loan

The amount you pay monthly for your car loan will be different for each lender. The interest rate on your car loan is based on things like your credit score and the length of your loan. The longer the loan term, the smaller the monthly payment, but it costs more money in total. Additionally, different lenders have varying administration fees, which will impact how much your car loan costs in total. Some lenders might also have prepayment penalties which means that if you decide to pay off your car loan early, you might have to pay an extra fee.

Indicative costs when you borrow £20,000 over 60 months:

  • Origination or administration fee: 0% up to 8% of the loan amount
  • Interest rate (APR): 2.7% to 29.99%
  • Monthly repayments: £357 and £647
  • Total cost on a £20,000 car loan: Between £21,403 and £38,817

The example above shows that the interest rate greatly impacts how much the loan will cost in total.

 

£20,000 Car loan calculator

Loan Amount

£20,000

Term

60 months

Admiral

Admiral Car Finance - Personal Contract Purchase (PCP)

EST Monthly Repayment
EST Monthly Repayment
7.63%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£1,000
to £25,000
Take control of your car finance with a representative of 7.9% APR
HSBC

HSBC Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View HSBC's website for more details on their car loans
Lending Works

Lending Works Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Lending Works's website for more details on their car loans
Likely Loans

Likely Loans Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Likely Loans's website for more details on their car loans
Lloyds Bank

Lloyds Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Lloyds Bank's website for more details on their car loans
Marks & Spencer Bank

Marks & Spencer Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Marks & Spencer Bank's website for more details on their car loans
Metro Bank

Metro Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Metro Bank's website for more details on their car loans
NatWest

NatWest Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View NatWest's website for more details on their car loans
Nationwide

Nationwide Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Nationwide's website for more details on their car loans
Post Office Money

Post Office Money Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Post Office Money's website for more details on their car loans
RateSetter

RateSetter Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View RateSetter's website for more details on their car loans
RBS

RBS Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View RBS's website for more details on their car loans
Sainsbury's Bank

Sainsbury's Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Sainsbury's Bank's website for more details on their car loans
Santander

Santander Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Santander's website for more details on their car loans
Tesco Bank

Tesco Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Tesco Bank's website for more details on their car loans
TSB

TSB Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View TSB's website for more details on their car loans
Virgin Money

Virgin Money Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Virgin Money's website for more details on their car loans
Zopa

Zopa Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Zopa's website for more details on their car loans
Carmoola

Car Hire Purchase

EST Monthly Repayment
EST Monthly Repayment
14.80%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£2,000
to £40,000
Carmoola's rates start as low as 6.9% for loans of between £2k - 40k over one to five years. Representative APR: 14.8%. Buy your dream car in minutes with Carmoola's virtual card, with a £0 minimum deposit. Carmoola is an entirely digital, app-based lender. No sales calls or paperwork! Take control and manage your loan in-app.

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Minimum and maximum loan periods vary between 1 month and 10 years. APR varies between 2.80% and 71.30% p.a. Total interest repayments vary between £435 and £1,019 over the life of the loan. *APR is based on an unsecured loan of R£15,000 for a term of 3 years. WARNING: This APR is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different APR. These rates can change without further notice. All rates quoted are per annum.

Tips for £20,000 car loans

Now that you’re familiar with the features of car loans, how should you proceed with your loan application? Yes, it does get confusing with all the different things you must consider.

While it’s not a complete list, try remembering these tips so you can ensure your loan will work for you:

  • Revisit your credit score: This is critical, since the lender needs to know you can pay them back. Your score must reach the acceptable range of 600 to 700, at minimum. (If you’re not sure what your latest score is, you can ask Experian, TransUnion, or Equifax.)
  • Use ‘soft searches’: We recommend you use these online tools from lenders that offer free eligibility checks. Just put in your desired loan terms and personal details, and the tool will perform a “soft search”. Then, it’ll show you your chances of loan approval, and you can decide from there if you should proceed.
  • Set aside for the deposit: Unlike personal loans or credit cards, car loans will require an initial deposit. On average, this is 10% to 20% of the car’s price. Clarify with the lender how much you’ll need to pay them, and make sure your budget will allow for this.
  • Plan ahead for the balloon payment: For certain types of car loans, you’ll have to settle a lump-sum payment at the end of the loan term. The lender will calculate this while considering different factors, like the loan term, the car’s price, and your deposit. Try to ask your lender how much your balloon payment will be, and then save up ahead for it.
  • Ask about other fees and taxes: Be sure to ask your lender about other fees you may have to settle related to your car purchase. These may include documentation and registration fees, as well as value-added taxes.

£20,000 car loan FAQs

Where can I get a £20,000 car loan?

There are so many lenders you can approach in the UK, whether they’re a high-street bank or an online specialist. Check out our comparison table here for a list, as well as the terms each lender has on offer.

What is the monthly payment on a £20,000 car loan?

It ranges between £357 and £647 monthly. You should expect these estimates given APR’s that move between 2.7% to 29.99% annually. However, the rates may also change due to other factors, like your credit profile and your relationship with the lender.

What are the origination, application, or administration fees on a £20,000 car loan?

You may need to pay up to £1,600, or 8% of the £20,000. Sometimes, it’s possible to pay no fees at all, depending on your negotiations with your lender.

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