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Comparison of different car loans and car finance options

The table below shows you the advantages/disadvantages of getting the various types of loan or credit finance. It is only intended as a guide for comparison of different car loans and car finance options and you should check the various options for yourself before making a decision on the car loans that you think might suit your own circumstances.

Advantages	Disadvantages
Personal loans
As a cash buyer can negotiate a better deal You own the car immediately Not secured on the car No risk of repossession of car Freedom of choosing any car you want	May not be cheapest loan Harder to get May need security
Car loans
May get extra benefits such as discounts on breakdown cover, insurance or related services Easier than getting a personal loan	May be secured on car, so missed payments can result in repossession of car Car is not yours until full payment made Not available on all cars
Hire purchase (HP)
Easy to arrange this type of car loan Can work out a cheap option for a loan If you have difficulty getting other types of loans, this is easier to get	Car is not yours until all payments have been made If you miss payments, your car can be repossessed Long loan periods can mean you pay much more for a car than it is worth
Personal contract purchases (PCP)
Lower monthly payments than other loans Suits people who want to upgrade their car frequently Good option for company car driver opting out of the company car scheme Flexibility of choosing payment terms and deposit	Highest cost loan overall You Don't own car, unless you make large settlement at end A large payment is necessary at the end if you want to keep the car You are required to maintain the car to a high standard There may be penalties for termination
Manufacturers' schemes
Secured loan, so easier to get a loan for a higher amount Easier to get than most other loans Competitive deals offered by manufacturers and dealerships	Less freedom of choice on make and models of car Usually restricted to new models Car is not yours until final payment made Repossession very likely if payments are missed May have a higher interest rate than some other loans

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The car finance quotes on this site are provided by third party finance companies. UK Car Classifieds makes no guarantees that the finance repayments will be the lowest repayments available. When requesting car finance or a loan for a car, remember that your car may be at risk if you do no keep up loan or finance repayments. See our Car loans and finance - terms and conditions for full details.