Personal Loan

Personal Loan

Learn more about using a personal loan to buy a car

What is a personal loan?

Personal loans are a method of gaining funding to purchase a vehicle which you will then own.

Firstly, select the vehicle you would like to purchase and then apply for a loan with a finance provider. Once the loan has been accepted you will receive the funds into your bank account, enabling you to complete the outright purchase of the vehicle.

The monthly payments will be paid to the finance provider until the loan is cleared.

For help or advice contact your local dealership and ask to speak to one of our sales team.

Is a Personal Loan suitable for me?

Personal Loans are suitable if you're 100% certain you would like to own the vehicle, as you will become the owner once you have signed the sale of goods agreement and paid for the car in full using the loan funds. 

Am I too young to have a personal loan?

Young drivers may find it more difficult to be accepted for a personal loan if they have little or no credit history as lenders are unable to determine the ability of a customer to make repayments. There are a plenty of steps that can be taken to build credit scores or alternatively there is the option of getting a guarantor loan, allowing a parent or friend to 'guarantee' the debt will be paid back.

Can you terminate the agreement early?

You can terminate the credit agreement early by paying the remaining amount of the loan owed to the financial lender, but this may result in a fee or additional charges being applied.

Unlike with Hire Purchase, Lease Purchase or Personal Contract Purchase; you are unable to 'voluntarily terminate' their agreement and hand the car back. 

Can you sell a vehicle you purchased with a Personal Loan?

Yes, you are able to sell the vehicle at any time as you become the legal owner of the car when you sign the sale of goods agreement and pay for the car in full. However, even after selling the vehicle, the you'll still be required to continue paying the Personal Loan repayments until it is settled.

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