A personal loan may also be referred to as an unsecured loan. With this type of finance, you will also be able to borrow an amount of money over a fixed period however, personal loans are not secured against the vehicle.
This means you will own the vehicle out right from the date of purchase and be able to sell it at any given time should you wish to do so.
Nevertheless, your personal credit score may be affected if you are unable to keep up with payments
- No mileage restrictions
- The loan is not secured against the car so it cannot be repossessed
- You have the flexibility to buy a car from a dealer or private seller of your choice
- You can sell the car at any time during the agreement provided you keep up with payments
- Fixed payments over set period to allow you to budget easily
- Maximum loan values, do not usually exceed £25,000
- There are no thorough checks carried out on who you are buying from as the loan will not be secured against your vehicle
- If your credit history is poor, then it is unlikely that you will be accepted for a personal loan