Important disclosure

Compare £40,000 Car Loans in the UK

Just how grand is your outlook in life? Maybe you’re a born achiever always aiming high, whether as a student, a professional, or an entrepreneur. Perhaps you often seek marvellous adventures in your travels, be it hiking up a mountain or exploring open waters. Or, this may be telling in the very home you live in. Wide spaces and multiple rooms to fill with the classiest furnishings—as if you had a blank canvas for your art.

The car you own comes into this, too. Just imagine: you’re in the driver’s seat of that SUV or luxury car, coasting through big cities and the vast countryside. If that vision speaks to you, you can buy yourself a grand car with a £40,000 car loan. Why a car loan, you ask? Well, you’ll gain great benefits such as low interest and fast approval. You’ll also gain flexibility to spend on other pursuits, while only fulfilling a monthly repayment on the car. If you ask us, those are all wins for just about any borrower!

Don’t have much experience with car loans? Don’t worry; our loans guide below may be just what you need to set you on your way.

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 £40,000 car loan

Your monthly loan repayment amount can 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 loan costs in total. Make sure you compare all these factors before choosing a lender to get the best deal for you.

Indicative costs when you borrow £40,000 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: £713 and £1,294
  • Total cost on a £40,000 car loan: Between £42,806 and £77,633

From the example above, you can see that the interest rate greatly impacts how much the loan will cost over time.

 

£40,000 Car loan calculator

Loan Amount

£40,000

Term

60 months

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.

About credit score for a £40,000 car loan

Knowing your car loan inside-out is one thing; being able to repay it is another. Here, we briefly discuss the importance of credit scores, which indicate one’s ability to pay back a loan.

In the UK, there are three main credit agencies: Equifax, Experian, and TransUnion. All of them maintain the credit histories and scores of every British borrower, including yours. Every time you finish repaying a loan or apply for a new one, these agencies will update your score accordingly.

Generally, a good credit score for these agencies starts at 600. Most lenders in the UK also use this as their standard for loan eligibility. Otherwise, any score below 600 means you’re currently not able to repay loans, or you’ve failed to repay past loans. In that scenario, we’d recommend postponing your loan application and getting your finances in order first.

You should always strive to keep your credit healthy, since it may grant you access to better loan terms. By this, we mean lower rates, longer repayment terms, and even greater loan amounts later on. Also, it is common for lenders to approve applications with good credit instantly. Remember, it does pay to fulfill all your financial obligations until the end!


£40,000 car loan FAQs

What is the interest rate on a £40,000 car loan?

You may get a rate of 2.7% up to 29.99% annually. The rate you’ll get depends mainly on your credit score, which indicates your ability to repay loans. With higher credit scores (above 600), you can gain access to the lower rates.

What’s the cost of a £40,000 car loan over 5 years?

This may total £42,806 at the lowest, or £77,633 at the highest. This is because your APR can range between 2.7% and 29.99% every year. You can negotiate for a lower rate better—and in turn, a lower cost—if you have good credit.

Where can I get a £40,000 car loan?

It’s easy to find a lender suitable for your needs with our comparison table here. Browse through dozens of lenders in the UK, as well as their terms and conditions for a £40,000 car loan.

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