Cheap Car Loans
Trade in your wheels without hurting your wallet
All kinds of lenders promise cheap car loans, but there are big differences between different products. Some cheap car loans come with a sting in the tail: at the end of the repayment period you'll have to stump up some cash or sell the car.
It seems that everybody is offering cheap car loans, and while there are good deals out there it's important to think carefully about what you're doing. Firms such as Yes Car Credit and TFC's Green Light Car Finance promise to give you great deals, but look under the bonnet and you'll discover a scary interest rate of 19.9% APR – compared to the 7% APR offered by many mainstream lenders.
In addition to repayment loans, you can get cheap car loans called things such as "car payment plans" and "personal contract purchase". These use a system called deferred payment to cut the cost of borrowing, so for example you could borrow £10,000 but the repayments would be £5,000. At the end of the contract period you'll then have to pay the remaining £5,000 either as a lump sum or by continuing the repayments over a longer period. With personal contract purchase you have another option: rather than pay the money to own the car, you can simply start all over again with a different vehicle.
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