Finally, a car that starts every morning
Typical example: For a loan of €1,000 you would pay €32,27 per month, if loan term is 36 months, agreement fee is €0, management fee is 0% (€0) per month, annual fixed interest rate is 10%. The total annual percentage rate of consumer credit (APR) would be 10,46%, and the total amount to repay would be €1161,62. The loan cost you are offered will depend on your individual circumstances.
Take the wheel with Bondora
Take the wheel with Bondora
From unexpected repairs to buying a new vehicle, over 15,000 customers financed more than €43 million worth of vehicle purchases and repairs with Bondora last year.
Whether you’re looking for a car, a motorbike, or need to cover repair costs, a Bondora loan can help get you moving.
Best of all, the vehicle is 100% yours from day one.
Exactly what you’re looking for
How a personal loan works for buying a car
A personal loan is one of the most common ways to finance a vehicle purchase. Unlike leasing, where a financing company retains ownership of the vehicle, a personal loan transfers the full purchase amount to your bank account, allowing you to buy the car outright and register it in your own name from day one.
The application process is straightforward: you apply online, provide information about your income and financial situation, and receive a personalised offer. If you accept, the funds are transferred to your account, and you repay the loan in fixed monthly instalments over an agreed period.
A personal loan for a car is not limited to new vehicles. You can use it to purchase a used car, a motorbike or another type of vehicle, or to cover repair and maintenance costs for a vehicle you already own. There are no restrictions on the make, model or age of the vehicle.
Personal loan vs car leasing: key differences
When financing a vehicle, the two most common options are a personal loan and car leasing. The most significant difference is ownership: with a personal loan, the vehicle belongs to you from the moment of purchase. With leasing, the vehicle remains the property of the leasing company until the end of the contract.
Leasing agreements often involve a down payment, and comprehensive (KASKO) insurance is typically required for the duration of the contract. A personal loan generally does not require a down payment or mandatory vehicle insurance, so there are usually fewer upfront requirements. The overall cost of either option depends on its specific terms, so it is worth comparing the total cost of credit in each case.
Leasing agreements may also limit the age or type of vehicle that can be financed, in some cases favouring newer models. A personal loan does not carry these limitations: you can choose a vehicle that fits your needs and budget, whether it is brand new or several years old.
What you can finance with a personal loan for your vehicle
A personal loan for vehicle-related expenses is not limited to purchasing a car. The funds are transferred directly to your bank account, giving you full flexibility in how you use them. Common uses include buying a new or used car, financing a motorbike or scooter, and covering the cost of significant repairs or maintenance.
Many borrowers also use a personal loan to cover associated costs that come with a vehicle purchase: registration fees, initial servicing, seasonal tyres or accessories. Since the loan amount is not tied to a specific invoice or purchase order, you can allocate the funds according to your own priorities.
Because a personal loan is unsecured, you do not need to pledge the vehicle or any other asset as collateral. The vehicle is registered in your name and remains fully yours throughout the loan repayment period and beyond.
What to consider before financing a vehicle purchase
Before committing to a loan for a vehicle, it is important to assess your financial situation. Consider your regular income, existing monthly obligations and how much room you have in your budget for an additional repayment. A loan that fits comfortably within your means is easier to manage over the full repayment period.
When comparing loan offers, look beyond the advertised interest rate. The total cost of credit, which includes interest, fees and any other charges over the full term, gives you a more accurate picture of what the loan will cost. A lower interest rate with high fees can end up being more expensive than a slightly higher rate with no additional costs.
Consider the repayment period carefully. A longer term reduces your monthly payment but increases the total amount of interest you pay over the life of the loan. Finding the right balance between a manageable monthly instalment and a reasonable total cost is key to a responsible borrowing decision.
