Car Finance Vs Loan

hotchocolate1982

I want to buy a new car but i'm wondering what the pro's and con's of the finance are. I was thinking a loans better because it's not secured on the car.

I was in a lot of debt in the past and I've just managed to pay it all off, so I want to ensure I don't get into the same problem again.

scotsbob

All you should be interested in is the total cost.

Therefore work out what is total cost with a loan and total cost with finance and choose which is cheapest.

gilbert_and_sullivan

Its a good feeling owing no one a bean, why willingly go under the burden again.

wba31

If you dont like being in debt, save up for a car.
If you need a car soon, buy something cheap that will last you a year or so, save the money you spend on a loan, and then buy a car with the money you've saved...

verityboo

If you mean a new new car then look at what manufacturers are offering with their finance. They sometimes subsidize the finance offering a lower interest rate, deposit contribution, free servicing etc

Flyboy152

hotchocolate1982 wrote: »

I want to buy a new car but i'm wondering what the pro's and con's of the finance are. I was thinking a loans better because it's not secured on the car.

I was in a lot of debt in the past and I've just managed to pay it all off, so I want to ensure I don't get into the same problem again.

Why would you not want the debt secured on the car?

Hire purchase gives a certain amount of protection; if you did fall into difficulty and had paid more than half of the money back, you could just hand the car back and walk away without penalty. If the car was bought with a personal loan and half way through, the car was worth less than the settlement figure of the loan, you will be be stuck with the outstanding balance and no car.