Can't afford that BMW? FinanceAcar launches car finance comparison engine

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There are three main ways to finance a new car. A car loan, hire purchase or car leasing. And while there are plenty of comparison websites for loans, the Internet fares less well when it comes to providing sufficient comparative information for the other two types of car finance. More specifically, there hasn’t existed one site that helps car buyers compare all three types of car finance options, says FinanceAcar, a new UK startup that today has launched what it claims to be the world’s first car finance comparison engine.

Aiming to answer the question “what is the lowest monthly price I need to pay to drive the car that I want?”, at launch the site compares finance options from top UK lenders for 6,000 vehicles and offers more than 1,000,000 different prices.

This, says the company, fills an estimated £11.5 billion gap left by traditional comparison websites in the UK such as Moneysupermarket.com that only compare car finance prices based on car loans. That’s because a car loan is the preferred option of just 1 in 5 car buyers, therefore a lot of consumers aren’t being catered for. By comparing options side by side, they’ll also be in a much better position to negotiate better finance where previously the dealerships held all the cards.

Co-founder Nadim Saad gives the following example: “A BMW 1 series can be financed on a car lease for as little as £220/month and after 3-4 years you can have a stress free new upgrade much the same way as your mobile handset. The traditional alternative is to pay £600/month to buy the car and keep it.”

The market is huge too. According to the Finance and Leasing Association and Keynote, at least 80% of all car shoppers use car finance for the average 2 million new vehicles acquired each year in the UK (market of circa £19 billion/year).

A Seedcamp London winner, FinanceAcar is founded by Mark Peatey who launched ITV.com back in 2000 (he left in 2005) and Saad who launched a finance comparison site in Latin America during the dot com boom.

  • Chris

    Could you explain somethings guys?

    Are you just comparing 4 different finance options or different lenders within the same finance option.

    Example:

    I searched Audi A3 and got a price for each of 4 different finance options, from personal leasing to a straight loan.

    Is that the comparison bit?

    Or within the personal leasing have you searched a number of different providers and show me only the best price?

    I like the site BTW.

  • http://www.financeacar.co.uk Nadim Saad

    Hi Chris,

    Thank you for your interest and your very good question. We compare the 4 major car finance options in the UK market but also look for the most competitive quotes among multiple providers for each of these finance options. We realise that this is not always clear to all users despite the fact that we say in our header: “Compare and Get Car Finance from the UK’s Top Lenders”.

    The reason we do not show the brands and quotes from other providers is that many lenders/leasing companies/dealers do not like to see their prices compared and most of them have a brand that most people wouldn’t even know anyway. However, given your comment, we will endeavour to make this clearer!

    Nadim

  • Chris

    Thanks for the clarification, Nadim.

    I currently lease through Lings Cars for both my wife’s and my own car, so your service is something I would definitely use in the future.

    Can I ask more questions?

    One thing I am always aware of is that each finance company has different terms. Some supply the lease with road fund tax, others you buy your own tax disks. There are also various different deposit expectations, delivery charges, excess mileage charges etc.

    The reason I would like to see multiple quotes was I would need to see this detail, and pick the one that suited me best. Without it, I would be hesitant to go much further based on monthly payment alone.

    Now I hope you take this in the spirit it is meant and I do, of course, appreciate you are not building this just for me! But as a potential future customer of 2 leased cars I hope highlighting my issues are useful in some small way.

    Regards
    Chris

  • http://www.financeacar.co.uk Nadim Saad

    Chris, we really appreciate your feedback! We are very much aware of everything you mention and for the moment, this additional comparison is done offline. This is however coming in our next product release, where you will find all this information and you will also be able to complete the full transaction online.

    We therefore hope that we will be able to fulfil all of your requirements when you’ll be looking for your next car finance/car lease!

    Don’t hesitate to send us any additional feedback you may have to: feedback@financeacar.co.uk.

    We look forward to serving you as a customer!

    Regards,

    Nadim

  • http://www.blogle.org/2010/08/can%e2%80%99t-afford-that-bmw-financeacar-launches-car-finance-comparison-engine/ Can’t afford that BMW? FinanceAcar launches car finance comparison engine | Blogle.org

    […] on eu.techcrunch.com This entry was posted in English, Technology and tagged bmw 1 series, car, com, finance […]

  • http://www.seedcamp.com Reshma

    @Chris – think you should be a v valued user for these guys

    @nadim – nice to see founders reply directly to users! v good service!

  • Gleb

    Cool service
    Any plans of expansion to other European markets?

  • http://www.financeacar.co.uk Nadim Saad

    Gleb, thanks for the nice words. We definitely have plans to expand as the same engine would be very useful in most European markets but we’re actually looking for partners who will be interested in taking our experience and technology to help us launch it. Anyone interested, please contact us on contact@financeacar.co.uk !

  • http://www.carloan4u.co.uk/ car finance

    nice site… I get to know many things after reading this page. Thanks for sharing.

  • http://www.carfinance247.co.uk/ Louis Rix

    The site seems very similar to others such as Nationwide Vehicle Contracts and looks like it’s heavily weighted towards leasing which is massively competitive in the UK. I’d be interested to see whether Financeacar are getting their deals direct from the manufacturer of whether they are just broker deals. Will the leads generated from the site be sent to multiple dealers brokers who offer the best price for the leads??

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    Nice site guys and your article is so good………………………………………….

  • Speed Star

    That’s a great website, Steve. Now people don’t have to browse through hundreds of websites just to find the perfect car loan deal for them. Considering the economic situation today, I am sure a lot will benefit from FinanceACar. Thanks for sharing.

    instant auto financing

  • http://www.carloan4u.co.uk/ Buying a car on finance

    Very awesome blog with smart written article.I really enjoyed reading your blog.Very Thanks for sharing such article with us.

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  • Boyd Johnson

    Is this service free? It sounds too good to be true. How are you making money off the website if you let people use your comparison engine that easily?

    auto loans

  • Car Leasing

    Nice short article..and site is simple and easy to use. Well done

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