A car finance loan is a great way to spread the cost of a large purchase, and will enable you to get the keys to a new car almost immediately, rather than having to save up
Some loans will also be flexible in term of repayment period – some will require you to pay all the money back in a year, other could give you up to five years to make the last payment. However, be aware that the longer it takes you to pay the loan back the more interest you will be paying.
However the interest on the money borrowed can mean that you end up paying more than the car’s original price tag, meaning that using savings to buy a new car can sometimes be a better option.
It’s important to remember that with a car finance loan, as we have said above, you don’t technically own the car until the last payment is made. You should also be aware that having poor credit can impact the amount of money you are able to borrow.