Car Finance or Bank Loans?

When taking a loan to buy a car, it is vital that you consider all the options to ensure that you find the best one for you.

Personal or Bank Loans

You can get a reasonably competitive loan from a bank or building society so long as your credit rating is good. Arranging a loan these days is a lot easier then it used to be thanks to the internet, but there are a few things you need to consider when taking out a personal or bank loan to purchase your car.

  • Ensure the loan is not secured against your home, otherwise you will be putting your home at risk if you fail to keep up with repayments.
  • There may be a wait for the funds to appear, although some lenders make funds available almost immediately.
  • Other borrowing may be affected.
Car Finance

There are many different finance options available to you when choosing to finance your car through your dealer. These options range from straight forward Hire Purchase, Personal Contract Plan or Personal/Business Leasing - Please see our Finance Products Explained page for an explanation on how each one of these products work.

Financing your car through your dealer offers many advantages including:

  • Quick and easy to arrange
  • Deposits are generally low (usually 10% or less)
  • Benefit from flexible repayment terms (from 12 to 60 months)
  • Competitive fixed interest rates
  • Loan is secured against the car

With our Personal Contract Plans you also have the option of handing the car back to us and pay nothing, trade the car in and start all over again or pay the optional final payment and keep it.

Leasing your car either for personal or business use allows you to add servicing and maintenance so you have a fixed monthly cost, with flexible payment terms (from 12 to 36 months). You don't have to worry about the car depreciating in value either because at the end of the agreement, you simply hand the car back.

As you can see arranging car finance through your dealer offers more flexibility over a personal or bank loan.

Need More Help?

if you have any questions regarding car finance please don't hesitate to speak to one of our branch finance managers.

Names, branch and contact details are listed below.