A car loan is a personal loan that you use to buy a car.
You borrow the money and then repay it within a set period called the “term”, which is usually less than five years.
If you buy from a car yard, the dealer might offer to arrange finance for you, but make sure you shop around as you might find a better car loan deal elsewhere such as online.
Process of compare car loans have some key features that you will need to consider.
These include whether you want a fixed or a variable rate loan and whether you want a loan that is secured against your car or one that is unsecured.
Another decision is whether you want to pay your loan off in equal installments or use a “balloon” with smaller installments but a large lump sum at the end.
Whatever you choose, make sure to research a variety of lenders because interest rates vary widely.
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