Vehicle loans or vehicle finance are a great product for those people who are looking to buy a new or used vehicle but needs some help to secure the sale. People spend hours and hours choosing which vehicle is suitable for them; however, they do not spend so much time researching the finance options available. Many people end up with costly finance on their chosen vehicle, often through hire purchase agreements that they have signed up for at a dealership where they have purchased their vehicle. This could end up costing you significantly more than if you were to research other options – such as a vehicle loan. Use the comparison grid below to compare the different vehicle loans that are available and see which deal is most suitable for you. Think about the duration of the loan, fees and charges and the interest rates which are available. Always read the terms and conditions carefully and if you are in any doubt you should seek independent financial advice. When you have found a vehicle loan that is suitable for you, click on the apply button to continue with your application.
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Financing your new vehicle
Purchasing your new vehicle, whether it is brand new or second hand, is a very exciting experience. People spend days or weeks deciding which vehicle they would like to own, however, not so long researching the finances. The excitement of buying a new car, can cloud your judgement when it comes to deciding how to finance your car so it is important that you look into all your options carefully. Paying over the odds to borrow the money to buy your car can easily void any hard work you did trying to get a discount on the car and make the car cost a great deal more over time.
What is a Vehicle Loan?
Vehicle loans are a suitable product for those people who are looking to secure the purchase of a vehicle, however, are unable to afford the car in one cash payment and need some help to top up their finances. There are several vehicle finances options that are available such as hire purchase agreements and car loans. How do you know what is suitable for you though? Unlike a hire purchase agreement, where the car dealership will own the vehicle until the final payment has been paid, a vehicle loan allows you to pay for the car outright. You will then have to pay monthly repayments, just like a personal loan, over an agreed period of time. You can apply for a vehicle loan online; just make sure you check the interest rates and any terms and conditions that might apply to the loan.
Who can apply for a vehicle loan?
If you are looking for vehicle finance then chances are you will be able to find a vehicle loan that is suitable for you. When you apply for a vehicle loan you will be asked to provide your passport, proof of address, proof of income and sometimes your driving license. There is usually a minimum age with all vehicle loan providers so make sure you check this before you apply. When you take out a vehicle loan a credit check might be carried out which could determine whether your approved for the loan. If you do have bad credit, you can still apply for a vehicle loan and obtain approval, you just need to ensure you check that the provider provides loans for people with bad credit.
What is the difference between a hire purchase agreement and a vehicle loan?
A hire purchase agreement is usually offered to you by the dealership where you buy your vehicle. You usually pay an upfront deposit (which can in some instances be your existing car) and commit to a payment plan to cover the cost of your vehicle of a period of months or years. As soon as all the monthly instalments have been paid, although you will have already been driving the car, you will own the car. It is worth noting that you will not actually own the car until all your repayments have been made, therefore if you fall behind on any payments you could find that your car is repossessed. It is also important to ask about any early repayment fees or indeed penalties that you might incur if you want to end your agreement early.