Personal loan

Personal loan
Unsecured personal loans are still popular, despite the fact that banks and building societies are less willing to sell credit. Gone are the days of 2% interest rates, although if you have a good credit rating there are some good deals to be had. However, people with black marks on their credit history will find the best advertised rates hard to come by.

Loans suit those who prefer to own their car from the outset, but they can be a more expensive way to buy than using finance arranged through dealers.

Choose a personal loan if
• You dont have a deposit to put down
against a finance deal.
• You want to own the car outright.
• You plan to keep the car long-term.
• You dont want to be limited by annual mileage restrictions.
• You have a good credit rating.

Watch out for
Advertised rates that never materialise Only people with good credit are offered the best APRs. Check your credit rating is correct, too.
Missing loan repayments Unlike dealer finance, its not just your car that will be at risk of repossession if you default any of your assets could be up for grabs.

Missing out on added-value deals Some car dealers will often wrap sweeteners such as free servicing deals into their finance agreements.