Car Loans online - best UK rates

There are so many car loans available nowadays in the UK that it can sometimes become confusing for consumers. This website will guide you through the different types of car loans available on the market, the best rates, and provides you with useful tips on how to get yourself the finest deals and where to look for the best and cheapest car insurance regardless of your individual circumstances and credit history.

There are three major types of car loan:

1. Hire purchase (HP)

This sort of car finance is arranged by car dealerships, and effectively means that you are hiring the car from the dealer until the final payment on the loan has been paid, when ownership of the vehicle is transferred to you.

2. Manufacturers' schemes

This type of loan is put together and advertised by the car manufacturer and can be arranged directly with them or through a local car dealership. Part exchanges on you old vehicle are usually accepted, and the remaining balance is paid through a loan. You will not be the owner of the vehicle until you have repaid the loan in full, and the car will be repossessed if you default on repayments.

These schemes are usually offered at higher interest rates than those found with regular lenders, but the manufacturer will sometimes offer exceptional deals, sometimes interest-free credit on selected models. If the car you are looking to buy is available through a zero percent or low interest rate manufacturer scheme, this could be a good choice.

3. Personal loans

You can either take out a general personal loan, or a personal loan designed for car purchase. The two are very similar, but because a car loan is taken out specifically to buy a car, it is possible that the lender will offer you car-related incentives on the loan, such as roadside assistance breakdown cover, free car insurance or special discounts on car accessories at affiliate garages and stores.

A car loan is usually classed as a secured loan, as opposed to an unsecured loan, even though you do not necessarily need to be a homeowner to acquire one. This is because the loan is secured on the car itself and not on your property. Personal loans tend to have lower interest rates than manufacturer schemes or hire purchase loans, but special low interest rate deals are less common.

A personal loan will give you the freedom to shop around for your car, as you are not tied to a specific dealer or manufacturer, and you may find that you have more negotiating power as a cash buyer.

 

 

 

 

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