Car Finance or Loan?

crapwithcash82

Hi All,

I'm starting to think about looking for a new car, as my current one constantly needs something fixed or repaired. I'm hoping to be debt free this year, and also graduate so will be (hopefully!) getting a payrise.

I've only ever owned three cars, one from brand new which my parents bought and I kept for about 6 years, one that I had for about 6 weeks and hated, and my current one which I borrowed money from a relative to pay for, which I have had for around 2 years. The last 2 cars have been second hand and both haven't really been good experiences, especially after having a brand new car first. I kind of agree with the "buying someone elses problems" thing when it comes to second hand cars now.

My question is whats the major differences between car finance and a loan? I've seen some deals where you pay a deposit, 36 monthly payments and then a final payment. If you don't want to pay this final payment, is the alternative starting all over again with another new car?

I'm really keen on an audi but don't want to have to spend more than £300-£400 per month - not sure if thats realistic or not and not fussed about the term in months as I really like them and can't see myself wanting to part with it in a hurry if I got one!

Any advise would be great given I have no experience or much knowledge of this!!

Thanks CwC