The different types of car loans
The following options, are all very different and all need to be considered when you come to purchase your new car. By assessing the different ways of financing your new car you are ensuring that you get the best deal. Take the stress out of it all, and let JSTFinancial.co.uk do it all for you. We have an extensive lender panel that offer a range of products to suit your needs.
Unsecured Car Loans
Buying a car outright with an unsecured personal loan can be a convenient way of making your purchase. Unsecured loans are normally repayable on a monthly basis, although you can now pay some on weekly basis at a fixed rate of interest.
They are not linked to any security, such as your house, hence the use of the term ‘unsecured’. The result of this is that the lender will have little option but to sue you to recover their money in the event that you fail to repay the loan in full. Always look at the rates closely as some car sales companies will make more out of the loan than they do from the car.
This is why they may try and persuade you into taking their finance. Have a look at our unsecured loans section for further advice and help. Let www.JSTFinancial.co.uk help search the market for the most competitive unsecured loan that best suits your needs.
Hire Purchase
If you buy a car on hire purchase, you will only own the car after the majority of the credit has been paid back. There is one other thing to remember with hire purchases - you don't even have to buy the car outright and indeed many people choose not to. So long as you have paid at least 50%, you will be able to give the car back and you will owe nothing else.
Personal Lease
This is similar to renting the car. You will not have to worry about M.O.T's or repairs as this is all included in the lease agreement and at the end of the lease, you return the car. One important thing to look for is the amount of miles that you are restricted to each year. Always make sure it is enough for your needs. If you go over the mileage they may charge you between 3-5p per mile, so it can be very expensive. There are a number of other types of lease agreements, but they tend to be business related, and so may be of interest to you if you are looking for your company of for a number of ‘fleet’ vehicles.
Part Exchange
If you have a car already, give it a good clean inside and out when you go to part exchange it. This can make a large difference to the price that the dealer will give you. Most places will part exchange your old car against another vehicle.
Whatever your requirements, JSTFinancial.co.uk can help. Complete the short form, and we can search the whole of the market in seconds to get you the best deal.