VEHICLE LOANS INFORMATION

Please see information below on Vehicle Loans.

        

Vehicle Loans

Comparing vehicle loans explained

If you are thinking about upgrading your car or looking to purchase your dream vehicle then there are several options available to you in the market which can make your purchase confusing. A brand new vehicle can be an expensive purchase so you need to research your options very carefully. Ensure you do not jump in to the deep end and sign up with first car finance option that is offered to you. Very often it is tempting to take out car finance with the car dealership where you buy your car, however, these are often hire purchase agreements and can charge high interest rates and have unattractive terms and conditions. It is worth looking into the other options available, one of which is a vehicle loan. A vehicle loan allows you to purchase a new vehicle affordably, very often with attractive terms and conditions.

What is a vehicle loan?

If you are hoping to buy a car or a vehicle then there is no doubt you are looking around to find the best vehicle finance on the market. But with so many different finance options available how do you know where to start? Buying a vehicle is an important financial decision that you will have to make, so ensuring you find the best deal is crucial. With a vehicle loan, you effectively take out a personal loan to pay for the car. You will own the car outright; however, you will need to make monthly repayments to your loan provider in order to pay back the loan. This is different to a hire purchase agreement where you will not own the car until you have made all the monthly payments. Choosing the right vehicle loan provider is not just about finding a lender that offers you the best interest rates. You should ensure that you look at the fees that each lender offers and make sure that you check the terms and conditions carefully before you commit.

Is there a different between a vehicle loan and a hire purchase agreement?

Yes – there is a big difference. A hire purchase agreement is vehicle finance that is usually offered to you by the car dealership where you buy your car. With a hire purchase agreement, you usually have to pay an upfront deposit towards the car and commit to a payment plan to cover the cost of your vehicle over an agreed period of time. You are effectively leasing the car for a monthly fee, you will obviously be able to drive the car during this period of time. Only when the monthly instalments have been paid off in full will you officially own the car. If you fall behind on your monthly repayments then your car will be repossessed by the dealership. Remember that there could be early repayment fees or penalties if you want to end your agreement early so be sure that you will be able to make all the repayments for the duration for the agreement.

A vehicle loan is different to a hire purchase agreement. With a vehicle loan you will borrow the money from a bank or financial lender and pay for the car in one lump sum payment. You will own the car and have to make monthly repayments, including an agreed interest, to the lender just like a personal loan. With a vehicle loan, if you are not able to make the monthly repayments then you will always have the option sell the car and repay the loan.

        


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