How to get a Car Loan
Whether you’ve found yourself on the side of the road, calling roadside assistance one time too many or have been eyeing up the dream car at your local dealer’s new showroom, buying a new car is a big decision. No matter if it’s a new or used vehicle, when it comes to financing this new purchase, Car Loans can help bridge the finance gap and get you the vehicle you want.
If you’re looking for more information about how to get a Car Loan, our Car Loan guide contains everything you need to know:
What is a Car Loan?
In basic terms, a Car Loan is a Personal Loan used specifically to buy a car. It involves borrowing money from a financial lender and agreeing to repay it over time with interest. The Car Loan can be used to buy a brand-new car or second-hand vehicle depending on your needs.
Types of Car Loans
Before making the decision and getting your first loan, it’s important to know the different types of Car Loans and how each Car Loan works. Discover the three types of Car Loans below:
- Variable Car Loan interest rate
A variable interest rate means that the Car Loan interest rate can go up or down depending on the lender. This will affect your Car Loan repayments each month. This will affect your Car Loan repayments each month, either the amount or the loan term depending on the terms and conditions of the lender.
- Fixed Car Loan interest rate
A fixed interest rate means that the interest rate on your Car Loan is fixed for the term of the loan. This gives you security knowing the monthly repayment will be the same each month. Avant Money offer a fixed Car Loan interest rate. You can calculate Avant Money repayments via the Loan Calculator.
- Refinance Car Loans
Refinancing a loan can be an option if interest rates have dropped, your credit report has gotten better, or you want to reduce your monthly payments. It involves taking a new loan to pay off the existing one, under better terms if possible.
How do Car Loans work
Once you have found the vehicle you wish to buy, if you need finance, you should take steps to secure a Car Loan. There are some important Car Loan phrases you should be aware of before speaking to your bank or lender:
- Principal: This is the amount of money you borrow.
- Interest rate: This stands for the percentage of the principal charged by the lender for borrowing money.
- Term: The length of time you have to repay the loan.
- Monthly repayment: The amount you pay each month, which includes both principal and interest.
- Deposit: The initial amount you pay towards the price of the car.
How Car Loans work at Avant Money is quite simple. Avant Money offer a simple Car Loan product to those looking to buy their new vehicle. The principal amount you wish to borrow is offered at a fixed interest rate for the full term of your loan. The loan term is flexible depending on your needs with terms of between 12 to 84 months offered. The interest rate offered will vary depending on how much you wish to borrow. Avant Money offer Ireland’s lowest fixed rate on Car Loans over €30k*. As it’s a fixed rate Car Loan, your monthly repayment will stay the same for the duration of the loan with no early repayment fees.
You can borrow between €5k to €75k meaning if you so desire you can fund most of the purchase price through an Avant Money Car Loan.
What do you need to get a Car Loan?
- Figure out your budget
Consider how much you can afford to pay each month. Include not just the loan payment, but also insurance, fuel, maintenance, and other costs.
- Selecting the right car
When considering your budget, you should know whether you want a new or used car. Then research the kind of models you are looking for that fall within your budget.
- Source finance
Once you know the car you want, you need to ensure you have the finance to fund the purchase. If you do not have the money available to buy the car in full, then a Car Loan may be the right choice for you. In this instance, review how much of a loan you might need. Avant Money offer Car Loans from €5k to €75k. Avant Money also has an online Car Loan Eligibility Checker you can use.
- Get pre-approved
Getting pre-approved for a Car Loan gives you a better idea of what you can afford. It also allows you to close quicker on a sale once you find the car you want.
- Car Loan drawdown
Once you’ve agreed on a car price with the seller, you’ll drawdown your Car Loan with the lender. This involves signing the loan agreement and supplying any required documentation. You can find more about which documents you need for a loan.
- Make regular payments:
Pay your Car Loan as agreed on the terms and conditions of your loan each month.
Apply for a Car Loan today
Getting a Car Loan involves careful planning and research. By understanding the key terms, knowing how Car Loans work, and understanding the types of Car Loan available to you, you can secure a loan that fits your budget.
*Rates and loan terms are correct as of 1st February 2026 and are subject to change (Source: CCPC.ie, not including Green Loans). The Maximum APR (Annual Percentage Rate) on all Avant Money loans is 19.9%. Minimum loan term is 12 months, and maximum term is 120 months. Loan terms vary depending on the purpose of the loan. Terms greater than 84 months up to a maximum of 120 months are only available for Refinance and Home Improvement loans of €20,000 to €75,000.
Representative example: On a €30,000 loan over 5 years, at a fixed rate of 6.5% (6.7% APR) you will pay €586.98 a month. The total cost of credit would be €5,219.07 and the total amount repayable would be €35,219.07.
Lending criteria, terms and conditions will apply. Personal Loans are available to residents of the Republic of Ireland over the age of 18 and are subject to repayment capacity and financial status. Proof of income and a credit reference agency search will be required to help us approve your request. Personal Loans are unsecured and not available for business purposes, house purchase or investment.
Our interest rates vary depending on the value of your loan and credit profile. We will assign you the appropriate interest rate once your application has been reviewed. To find out more about the loan values and applicable interest rates, check out our rate table at Avant Money Personal Loans.
Bankinter S.A., trading as Avant Money, is authorised by the Banco de España in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.