Car Loans
Car loans are specifically designed for the purchase of a new or second hand vehicle. There are many finance offers to choose from.
Car loans are an increasingly popular way to purchase a new vehicle. They offer numerous advantages, such as lower interest rates than dealer-financed plans and the freedom to drive the latest models without breaking your budget too much.
Consumer car finance debt has seen a marked increase, with an average amount financed per new car now more than doubling over 10 years.
A PCP loan allows you to borrow money based on your car’s depreciation rather than its total value, and make monthly repayments until you own the vehicle outright, typically after two to four years. At the end of this agreement, you have two choices: return it and start a new PCP agreement, or swap it for an all-new model.
Another popular car finance option is a hire purchase agreement, which lets you take the keys to a brand-new vehicle without paying upfront. However, unlike PCP, you’ll have to put down a deposit before taking possession of the car and your monthly payments will be higher.
Guarantor loans are an increasingly popular choice for those with bad credit, where someone agrees to guarantee your loan and step in if you can’t repay it. Although these can be great help to those struggling to obtain credit, they should still be taken seriously as this commitment puts both parties at risk.