A personal loan is a common way for people to buy a new car on finance. Personal loans can be taken from banks, building societies and finance companies. The duration of the loan can vary depending on what you agree with the loan company. Loans from banks for cars can be paid off over a number of years, and will have a fixed rate of interest.
There are two types of loan available, either secured or unsecured. With a secured loan, the finance company or bank will retain ownership of the car until the balance of the loan has been paid off. An unsecured loan means that the buyer is attached to the loan and not the car, meaning that the borrower owns the vehicle from the beginning. Most unsecured loans are more expensive and will have a higher interest rate than a secured loan.
Pay monthly instalments over an agreed term and at the end decide if you would like to own the car outright.
Perfect for those who know they will be looking to move on to another car once the agreement period is over.
Available from or /month (Rep)