Skip to content

Shopping around and comparing car credit loans

One of the easiest and quickest ways to compare car credit loans for the best deal for your needs could be to go online with a specialist website. Such a company will allow you to make comparisons with a vast range of UK insurance companies to ensure that you get to choose from some of the lowest rates of interest and get the most suitable form of loan or finance for your needs.

One of the easiest and quickest ways to compare car credit loans for the best deal for your needs could be to go online with a specialist website. Such a company will allow you to make comparisons with a vast range of UK insurance companies to ensure that you get to choose from some of the lowest rates of interest and get the most suitable form of loan or finance for your needs.


There are a few different ways that you can take out car credit loans and each of these have their good and bad points. These need to be weighed up before deciding on the best choice of finance for your needs. You could choose from hire purchase which is usually offered by the dealership, or you can take out a secured or unsecured loan.


The dealership could offer hire purchase but the downside to this type of loan is that the vehicle is not yours until the last payment. This means that you could lose it if you were to default on the loan and be unable to catch up. You will pay a deposit which will help to keep down the cost of the repayments you have to make each month.


If you are taking out a loan as your choice of finance then you will have some bargaining power when walking into the dealership. If you are buying a second hand car with a private buyer then you will have no other option but to take out a loan. However when buying a new vehicle if you have cash in your pocket you may get something knocked off the cost of the car as you are paying cash there and then.


If your credit rating is excellent then you could take out an unsecured loan. However there will be a limit as to how much you will be able to borrow and this will be based on how much you earn and your ability to repay the loan. The unsecured loan will generally come with higher rates of interest than a secured but you will not have the worry of having to put your vehicle or home up as security.


If you are comparing car credit loans of the secured nature then whatever you put up as security will be at risk throughout the time you are repaying the loan. However the rates of interest could be slightly lower and you will be able to borrow a larger sum of money and spread the repayments over a longer period of time.
 

Posted by on

Back to May 2009

Back to top