Bank Loan or Car Finance?

BTB1_2

Assuming the APR's are similar, which is more straightforward.

I know they both use the credit checking procedure, but are any less stringent than the other?

Any difference in turnaround time?

Thanks

standupguy

BTB1 wrote: »

Assuming the APR's are similar, which is more straightforward.

I know they both use the credit checking procedure, but are any less stringent than the other?

Any difference in turnaround time?

Thanks

Car Finance with dealer may be quicker particularly if HP agreement as most have computerised instant underwriting availability - however beware HP documentation fees which can add £300 to the total cost, the APR even if the same as a loan will get applied to the doc fees so you could end up paying £300 + x years interest on the £300.

The trade off if same APR is against HP which is quick and easy or loan which may take longer but is cheaper in the longer term.

Also with HP the the car is not your property until all payments are made and can be repossessed if you do not pay- hence why less stringent as it acts as security against the loan whereas a personal loan for a car is usually unsecured lending

inmypocketnottheirs

Also with HP there is always the option of doing a Voluntary Termination once half the payments are made. This means you can walk away from the vehcile after half the term. As cars depreciate rapidly, the sooner you can get out the agreement the better!