Car Loans UK

For the majority of people, utilising current funds to pay for a car upfront just isn't in the realm of their budget. And even if it were, most folk would not want to take such a dent out of their savings account to buy it. So the likelihood would be that they are either going to be renting the car, or buying the car by way of a car loan. If buying, then they're probably getting a car loan through the dealership, a bank or credit union, an online financial institute, or maybe even a family member. Which ever it is, they will want to get the best car loan available to you.

While the option of renting is useful for a lot of situations, it is not what we are concentrating on here; we're focusing here on getting the best car loan. If you know you want to buy your car using a car loan rather than pay cash, then you need to do a bit of research and decide how to get the best financing deal.

Means of car loan - Pros and Cons

Bank or credit union
Pros: Competitive rates, personal service, no sales pitch for add-ons; often can tell you if you're paying too much for a car; often provide free life insurance or disability insurance with loans; loans are usually simple interest loans (interest spread evenly throughout the term of the loan)
Cons: Not as convenient as dealership financing -- can't set it up at night or on the weekend

Home equity loan:
Pros: You can deduct some of the interest from your taxes; competitive rates
Cons: You're tying your car to your home (may be risky)

Family member or friend
Pros: Personal service, easy, sometimes flexible; usually competitive rates
Cons: Could jeopardize a relationship

Dealership
Pros: Convenient, fast, sometimes competitive
Cons: High pressure, usually not competitive; be prepared for a big sales push on add-ons; car loans are often front-loaded (payments are made up of more interest in the beginning of the loan than toward the end -- that's bad if you think you may be paying the loan off early.)

Online financial institution
Pros: Usually competitive rates, quick, easy
Cons: Not a personal service; dealing with an unknown; some scams to watch out for

But we at Car Loans would recommend taking a look at our panel of online car loan lenders or visiting Loans UK to find some of the most competitive loans on the web.