Not too many of us can afford to purchase a car outright from our own financial resources. Car loans are therefore a virtual necessity for many.
Dealer loans
For many, dealer loans are often considered because they are typically prominently displayed and pushed in the showrooms of car dealerships.
Such loans may have their place but they have the disadvantage that they may mean you're restricted to choosing a car from an individual dealer's forecourt or even perhaps a single manufacturer's car. Some such loans may even apply specifically to a given model.
Banks and building societies
Although once a prime source for car loans, today it may be rather more difficult to find a loan for a car through a bank.
Some banks may also require a relatively high deposit from the borrower and they may also be reluctant to advance sums for cars that are pre-used or more than 12 months old.
Specialist car finance options
There are specialist providers of car finance that advance money to you for the purchase of a car of your choice (assuming it makes sense against your income of course!).
You simply apply online and if approved, you'll be given a provisional amount of the maximum loan available. You can then use that money typically with any car dealership to drive the hardest bargain you can for the vehicle you want.
A deposit is not always required and all that's needed, once you have selected the car, is for the finance company to confirm that the price you have agreed with the dealer is sensible given the model (including age/mileage) you have selected.
Assuming all is well, the finance company will then settle the purchase directly with the dealer and the car is yours.
Advantages
The specialist car finance providers may allow you the freedom to divorce the business of driving a hard bargain for the price of the car from that of trying to negotiate a loan with the car dealer.
It may also be more convenient and suitable to your expectations than going through what may be lengthy bank loan application processes.
Car loans from the specialist providers are changing the game and for the better.
