Car loans offer used car financing alternative

| | ,

A car loan is normally a personal loan that incorporates fixed monthly payments over a fixed term and with a fixed interest rate. They are widely available from finance companies, direct lenders, banks and building societies.

If you’re wondering how to finance a second-hand car purchase, let carshop.co.uk/car-finance talk you through one method – a car loan.

How do they differ from Higher-Purchase agreements?

Unlike hire purchase agreements, car loans are generally “unsecured” which means the finance is not secured against the car you have bought.  As such, you and not the finance company are the legal owner of the car from the day you buy it rather than having to wait until you have finished paying for it.

Pros

Car loans can be arranged on the internet, over the phone or in person and they can often cover the full value of the vehicle which means you may not need a deposit. Interest rates are usually competitive.loans

How does it work?

Personal loans are typically regulated by the Consumer Credit Act (CCA). The amount you are eligible to borrow and the APR that you are offered will be determined by the individual lender, and will vary depending on your credit rating and the lender’s risk assessment of you.

Ending the agreement

While a personal loan agreement will come to its natural conclusion when all repayments have been made, you can settle your loan at any point in the contract by repaying the outstanding balance to the lender.

Check out each lender’s individual terms and conditions for early settlement fees. Lenders must disclose all additional charges and fees in the terms and conditions of the loan before your sign it.

Source: Sponsored content.

Subscribe For Latest Updates

Sign-up for the free Weekly Driver newsletter for new car reviews, news and opinion

Invalid email address
We promise not to spam you. You can unsubscribe at any time.

Support independent journalism. Many of us are undergoing pay cuts and decreased hours. Shop on Amazon using this banner, and The Weekly Driver receives a small commission at no cost to you.

Advertising Disclosure: TheWeeklyDriver.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Previous

Acura RLX, 2014: Odd-looking luxury sedan elegant, plush, pricey (video)

Top art deco cars from The Great Gatsby era, Buick to Corsair

Next

Leave a Reply