Get your motor running with low-rate car loans
It's a horrible Americanisation, but many firms offer auto loans – or car loans, as normal people call them. Auto loans are available as standard repayment loans, but some firms offer personal contract plans, hire purchase and other options that can help you drive the car of your dreams.
Although it's an American phrase, you'll find many UK firms offering auto loans – car loans, in other words. However, we wouldn’t recommend typing the phrase into a search engine if you're looking for a loan, because the results will almost certainly be dominated by US companies.
Auto loans, or car loans as we'll call them from now on, are available from a wide range of lenders. Standard repayment loans are the most common option, but you can also go for hire purchase or a personal contract plan. Hire purchase is secured on the vehicle, so if you default on payments you could lose your car; personal contract plans are more like leasing. With PCPs you pay a monthly fee and agree to stick to agreed mileage limits. At the end of the contract period you can either pay a lump sum to buy the car, you can start again with a different vehicle, or you can walk away altogether. It's an interesting idea but beware: if you exceed the agreed mileage limits or don't look after the car, you could be facing a hefty bill at the end of the contract period whether you decide to keep the car or not.
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