Car Loan

Car Loan

What benefits do car loans offer over car finance?

Depending on your needs, car loans can be far more beneficial than direct vehicle finance.

As with any loan product the rate you pay will largely depend on your financial circumstances, but overall car loans can be quite a bit cheaper.

If you plan to purchase a new car and are unsure as to what method of finance you intend to use, consider the following: -

1. A car loan provides far more freedom than vehicle finance. You have the option of purchasing your vehicle privately or through a dealership.
2. Typically direct vehicle finance can be quite expensive with some plans carrying APR’s above 15%.
3. If you’re a homeowner, you can apply for a secured loan at a great rate to purchase your car.

The main advantage with direct vehicle finance sourced through a dealership is peace of mind. If your car is purchased privately and something goes wrong with the vehicle after you drive away, the individual is not obligated to repair it. A professional garage or dealership will offer some level of after sale service.

Are car loans available to people with bad credit?

If you have bad credit there are a number of specialist lenders who are able to offer a loan to you. You should be aware that unsecured car loans may carry above average interest rates. If you’re a homeowner and have bad credit, you will still be eligible for a good rate providing the loan is secured against your property.