Car Loans That Get Cheaper When You Pay on Time
A fair, flexible car loan from Rate Drop™. Make your payments on time and your interest rate automatically drops — reducing your monthly repayments.
Need a car now and want simple monthly repayments?
Need a car loan you can trust? With Rate Drop™, you can buy a new or used car from any dealer or private seller — with no deposit, no balloon payment and no guarantor.
- Borrow from £1,000 to £5,000
- Terms from 12 to 36 months
- Quick online application
- Open Banking for a quick, fair affordability check
- UK-based support
How Rate Drop™ works
Every customer starts with the same fixed APR. Make six consecutive on-time payments and your APR automatically drops for the rest of your term.
For loans over 12 months, you can receive two Rate Drops™ — rewarding consistent, on-time payments with lower costs.
Why choose a personal car loan instead of dealer finance?
- You own the car from day one. No finance company restrictions.
- No deposit or balloon payment. Just clear fixed monthly repayments.
- Buy from any dealer or private seller. New or used.
- Enjoy Rate Drop™. Make six on-time payments and your rate drops automatically.
Eligibility checklist
Before you apply for your car loan, check you meet the following criteria:
- Are 18 or over and live in the UK
- Have a regular income paid into a UK bank account
- Can afford the repayments after your normal bills
- Are not currently bankrupt or in an active IVA or DRO
We’ll verify your identity, run a credit check and assess affordability. We also use read-only Open Banking access to view your recent transactions and essential spending — helping us make fair, responsible lending decisions quickly and securely.
Common ways to use a Rate Drop™ car loan
Smart ways to use your Rate Drop™ Car Loan
- First car or family runaround
- Replacing an unreliable car
- Buying from a private seller
- Covering insurance, tax, and initial repairs
Whatever you choose, your Rate Drop™ loan is designed to make car ownership simpler and more affordable over time.
Looking to borrow for something other than a car? Take a look at our Home Improvement Loans or Debt Consolidation Loans. Already a customer? You might be eligible for a Top Up Loan.
Apply Today