RAC Loans Info (Broker) | www.rac.co.uk


The RAC’s roots take us back to the year 1897. This motoring specialist is today owned by CVC Capital Partners and GIC Private. They have 8 million roadside assistance members signed up. A range of further products (mostly insurance) are now headed at www.rac.co.uk. They use outside insurers and for their loan they use Hitachi Capital (UK). Their approach to expansion has been expected, where they have been intent on keeping up with The AA. Their main rival has 15 million members using their roadside service. The AA’s personal loans were previously explored here where they are brokering for Bank of Ireland UK. A low rate is available on that side at 3.2% APR.

The RAC loans are priced a higher at 3.8% APR. The available loan sums are £2500 to £25,000 on terms of 2 to 5 years. It is a shame that this doesn’t cut back to £1000 over a single year, but these are the same specs offered by the lender. For £10k over 2 years the charge is £393.44. You’ll need a good credit score to qualify, but considerations are made for the self-employed. The application button is shown at www.rac.co.uk, but on clicking this they’ll take you to a specific long URL on www.paybyfinance.co.uk. There is no RAC loan login provided with their account servicing being specific to membership and also their car insurance offering.

The personal loans are just a supplementary offering with only a small page introducing them with very few details, no FAQ etc. It does state that the money could be placed in your account on the next working day. From what we know of their lender the delay should be 48 hours. They are fast since they use an e-sign rather than requiring documents through the post. Their consumer product (Hitachi Personal Finance) is matched in every way (same amounts, rate etc). You can however manage your account online on that side. The decision to go with Hitachi makes sense based on their speedy turnarounds. For pricing and general flexibility though, The AA comes out on top.