Whats better car loan or finance

mollymoo

mollymoo

mollymoo

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As the title suggests we are after a new/second-hand car and wondered if it would be better to get a loan from a bank or get a car on finance?
 
Probably better to get a bank loan as the APR rates will be much more competitive than say a finance company who will probably charge a silly amount of APR.
 
No reason to assume a bank will provide the best deal. Shop around a bit and as above you might get lucky with a 0% finance offer - obviously only taking it if you can pay off before that runs out.
 
Whichever gives you the lowest overall cost to change. This can be tricky to work out, because dealers factor in finance commission into the discounts they offer.

Generally speaking, a bank loan will work out cheaper, but can be slightly more difficult to get due to it being unsecured...
 
platypus said:
No reason to assume a bank will provide the best deal. Shop around a bit and as above you might get lucky with a 0% finance offer - obviously only taking it if you can pay off before that runs out.
Click to expand...

We plan to pay off a loan in about 3-4 months so I'll have a look thanks all :)
 
Banks may seem to offer better rates but dont forget that garages can also offer "personal loan" products the same as banks and not just "personal finance".

Just remember not to get blinkered on the interest rate. Pay attention solely to the monthly payment itself plus any admin charges at the start/end of whatever loan.
 
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