Credit products advertised as car loans are generally just personal loans dedicated to the specific purpose of lending money for the purchase of a car.

However, some lenders offer extra benefits that may clinch the deal for you. For example, in January 2004, anyone taking out an AA Car Loan qualified for a free AA Car Inspection. Other recent incentives include discounted insurance, free membership of a breakdown assistance organisation, and 'payment holidays' where initial monthly repayments are waived.

Some people are lucky enough to qualify for another type of car loan - concessionary or subsidised employee loans. These perks are most common in large organisations and the public sector. Check with your personnel or payroll department to find if your employer runs low-cost loan or assisted lease schemes. Conditions can apply - you may have to be an 'essential user' of a private car for work purposes.