What should I consider before taking out a loan to finance a car?
As with all loans, you need to make sure that it’s right for you and your financial circumstances.
Some considerations that you should keep in mind are:
Your personal APR could be higher or lower than the advertised representative APR. Depending on the interest rate you receive, you could end up paying more or less than what you initially had in mind. Getting a personalised quote and guaranteed rate from Shawbrook before you borrow will help you make an informed decision
Whatever your APR is, it will still be more expensive than paying cash from existing savings as you’ll have to pay interest on the amount borrowed
By paying with cash, you aren’t protected in the same way as some other dealer finance options if something goes wrong with the car soon after you make payment. Make sure you purchase from a reputable dealership and understand your consumer rights and insurance before making a purchase
For more information, read our ultimate guide to financing a car.