There are different options available when it comes to car loans. We are talking about using a personal loan, getting the money into your account and then buying a car, since this can be the most cost effective way.

Once you have your money and are ready to buy your dream car, you have your choice of two options:

– Also known as PCP.

– Pay an initial deposit.

– Make monthly payments for 3-5 years.

– The higher your deposit, the lower your monthly payments.

At the end of the loan term, you can decide whether you would like to make a ‘balloon payment’ which covers the cost of the vehicle and transfers the ownership from the dealership to you.

If you do not wish to make the balloon payment, you can give back the car and start again with a new vehicle and plan.

– Also known as HP.

– You pay a monthly fee over 1-7 years.

– 10% minimum deposit required.

– The higher your deposit, the lower your monthly payments.

With hire purchase, you are essentially renting the car each month until you have fully paid for it and own it outright.

The higher the deposit you make, the lower your monthly repayments will be. For more details on the types of loans we compare, visit our compare loans UK page.

Check your eligibility today with Forces Compare using our online loan application and get a quote in less than 5 minutes.

We run a soft credit search so there are no fees for applying and it will not impact your credit rating in any way.

We offer a provisional quote with no obligation and you can proceed at your own pace. If successful, funds are usually transferred on the same day.