Car on finance Vs loan from bank

Arsenal2019

Hi guys,

Thinking of getting a car on finance but can’t decide on which road to go down. Out of everyone’s experience / knowledge, is it better to get a car on finance (pcp, hp) or get a loan from the bank?

Also, this may seem a silly question, but if anything goes wrong with the car or general maintenance, who pays for it? I’m guessing I would have to do so?...

Thanks.

forgotmyname

Cash works best.

Can you afford to fix the car as well as pay the loan? Your responsible for the service, repairs and maintenance.

shaun_from_Africa

Provided that the interest rates are comparable then I would suggest opting for direct finance on the car.
That way, you will have "Section 75" protection: (provided that the car doesn't cost more than £30k)
https://www.moneysavingexpert.com/shopping/section75-protect-your-purchases/
should the need arise in the future.

neilmcl

Richardroberts1 wrote: »

Hi guys,

Thinking of getting a car on finance but can’t decide on which road to go down. Out of everyone’s experience / knowledge, is it better to get a car on finance (pcp, hp) or get a loan from the bank?

Also, this may seem a silly question, but if anything goes wrong with the car or general maintenance, who pays for it? I’m guessing I would have to do so?...

Thanks.

Generally bank loans should be cheaper, especially if it's a used car and will also mean you own the car from the outset whereas with HP/PCP you won't until the final payment has been made.

Also you guess right, maintenance is your responsibility.

debtdebt

Yes the second question is a silly one. You bought the car, you're responsible for repairs. Same as anything you buy really.

Mercdriver

shaun_from_Africa wrote: »

Provided that the interest rates are comparable then I would suggest opting for direct finance on the car.
That way, you will have "Section 75" protection: (provided that the car doesn't cost more than £30k)
https://www.moneysavingexpert.com/shopping/section75-protect-your-purchases/
should the need arise in the future.

You can have this at better value by paying the deposit by credit card and paying the remainder with a lower interest cash loan.

Arsenal2019

Thanks guys . Really appreciate it