Personal car loan
Buy your car from any dealer with a personal car loan. Ideal for young drivers with good credit who want to avoid having to pay a deposit. Most personal car loans are unsecured so you will own the vehicle straight away
How does a Personal Car Loan work?
Young drivers with a good credit score can finance a car with a Personal Car Loan from a bank, building society or finance company.
Your free to buy a car from any dealer, or, privately with the money, you have borrowed.
Personal car loans are usually unsecured. The Lender cannot take the car if you have problems in making the repayments, and you could always sell the car to repay any money owed.
At the start of the Personal loan
To qualify for a personal car loan, you need to be at least 18; some Lenders require 21 as a minimum age.
You need a good credit rating without previous financial issues such as missed payments or county court judgements (CCJs).
Because you are borrowing the money to buy your car outright, you are the legal owner as soon as you have made the payment.
The APR (interest rate) for an (unsecured) personal car loan will be higher than with other car finance options.
When the Personal loan ends
Pros of a Personal Loan
- No upfront deposit is required on the loan.
- With the cash in your pocket you may have a better bargaining position with a car dealer or private owner.
- You won’t be limited to the number of miles you can drive!
- You will own the car outright so can sell or change the car whenever you want to.
Cons of a Personal Loan
- The issue of putting your house up as security for a Secured personal loan.
- If you sell the car, you still have the loan repayments to make but the option to pay off the loan.