Personal loans can be taken from banks, building societies and finance companies and are an accessible way for people to buy a new car. The duration of the loan can vary depending on what you agree beforehand with the loan company and your own individual circumstances. In overall terms loans from banks will be scheduled to be paid off over a period of several years, and will have a fixed rate of interest.
You can opt for two types of loans - either secured or unsecured. Using a secured loan means that the finance company or bank will retain ownership of the car until the balance of the loan has been fully paid. An unsecured loan ensures that the buyer is attached to the loan and not the car. This means that ownership of the vehicle is retained from the outset. Most unsecured loans are more expensive and will have a higher interest rate than a secured loan.