Where to Find a Cheap Car Loan...
With many people now changing their car every 3 years, the car finance industry is now huge and often complicated. You should think about car finance as soon as you start looking at cars.
The key to finding a cheap car loan is to do your research thoroughly. For example interest free or low APR deals may be available from the manufacturer. However, although car companies and dealers may offer interest free credit to tempt you into making a purchase, you may have to pay a large deposit - possibly 50% of the value of the car.
Get a Written Quote and compare on this site
Remember the dealer may not be the best option for a cheap car loan. Make sure you get a written quote from the dealer so that you can confirm later. You can then look at other sources such as internet home loans companies for competitive deals. Always check that you are comparing like with like. Figures for the interest rate or monthly repayments do not tell the whole story when it comes to getting a cheap car loan appropriate for you.
Hire purchase deals can be arranged through a dealer or with finance companies direct. Deposits and rates tend to be low and the car is yours at the end of the agreed period. Interest rates may be negotiable - try asking the salesman. Personal loans are another competitive option for a cheap car loan. The loan is not tied to the car so the car cannot be repossessed and you can sell it without having to repay the loan.
Personal contract plans
Personal contract plans are offered by many manufacturers. You pay an initial deposit then low monthly payments for 2 or 3 years. After this you make a 'balloon' payment to keep the car, or you return the car or the difference between the value of the car and the balloon figure can be used towards a new car. This type of cheap car loan suits people who like to change their car regularly with low monthly payments. However the interest charges overall are high because of the balloon.
