With lenders chasing your business, getting personal loans to finance your car purchase has never been easier. Available at the big High Street lenders, by phone or online from direct-sales companies, they offer flexible repayment periods of 2 to 10 years.
Interest rates are most competitive for larger personal loans (though still higher than remortgaging).
The big advantage of a personal loan is that it separates the finance deal from the car deal. You can shop where you want - at a dealership, privately, with an online retailer or even at auction - and you own the car from the start.
- Go for a fixed-rate loan deal, so your monthly repayments don't vary.
- Repayment protection covers redundancy, unemployment, sickness and accident. It costs extra but buys peace of mind.
- Use a low interest credit card to finance small cash sums.
- Go to OWN OR LEASE? for non-ownership finance plans.