The AA is best known for its breakdown cover but it does more than that. It also acts as a credit broker, providing unsecured personal loans provided by the Bank of Ireland UK. AA loans are typically repaid in fixed monthly instalments over one to five years, depending on the amount borrowed. These are often arranged via direct debit with the first payment due one month after the loan is paid into your account.
The availability of AA car finance has helped to boost the market for near-new cars. It has allowed people to trade in their older vehicles and upgrade to something cleaner and greener, while avoiding the hefty up-front cost that would be involved with buying a new car. That has to be a good thing in the context of Britain’s traffic-clogged roads, where air pollution is high.
But savvy shoppers will be aware that such loans come with some hidden costs and should take care to check what they’re getting themselves into before they commit. The AA is keen to stress that its loans are only available for people who can afford the repayments and advises customers to take out independent financial advice before applying for any kind of finance.
One thing to bear in mind is that it can take two working days for AA to transfer funds from your loan into your account after you sign your agreement. That means you’ll need to make sure you have enough cash in your bank to pay off your debt when it’s due, and you may pay additional interest if you’re late with payments. Unlike many lenders, AA doesn’t offer live chat or email support and you have to call them for help when you need to change your repayment dates or settle your loan early. AA car finance