Here’s an example of the kind of offer you could expect:
If a car costs £12,000 to buy outright, you pay a 10% deposit from your savings of £1,200, leaving £10,800 left to pay.
- You're accepted for a personal loan, and borrow £10,800 over three years.
- You get a 5% APR deal, meaning payments would be £323.69 a month (so £11,652.68 over the three years).
- You drive away from the dealership in your new car, and start to make your monthly loan repayments.
- So in total you’d pay £12,852.68
Once all your repayments have been made, you don’t need to do anything else as your agreement is finished.
Getting to know your options
There are lots of different ways to finance your new car, so if you’d like to know more about what’s available, this handy guide from the Money Advice Service will have all the answers.