A record 1.5 million used cars will be bought on finance this year, AA Car Finance figures show. That’s a rise of 69% since 2022, and represents a big chunk of consumers’ budgets.
It’s possible to get an idea of how much a loan with the AA will cost before applying, as the company offers a loan calculator. You can change the amount you want to borrow and the loan term to see how much your monthly repayments will be. However, you will need to provide full details of your income and expenditure when you apply, so the figures may be different.
You can also check whether you are likely to be accepted for a loan before formally applying by doing a soft credit search, which won’t affect your score. If you’re accepted, your lender will run a hard credit check and you’ll need to sign your loan agreement before you receive the funds. You can do this online or over the phone.
AA also offers insurance policies, including third-party, fire and theft cover for your vehicle, as well as breakdown coverage. You can get an initial 12 months’ roadside cover for free, or upgrade to national recovery and pay a little more for the extra reassurance. Customers can also get legal assistance to recover uninsured losses from the at-fault party after an accident, as well as two hours tuition with an AA driving instructor if they’re involved in one. AA car finance