Car Loan, Read the Small Print

A secured car loan allows you to take advantage of the lower interest rates, but be aware of your obligations here. Most likely you will be using your home (or indeed your car) as security toward your borrowings so, if you cease making your repayments, then your lender can use your home to recover their money loaned to you. Purchasing a repayment protection policy, which will then be added to your monthly payment, will help you to avoid this situation.  Although some lenders will try to charge them anyway, fees  charged to arrange your car loan are not necessary at all, so check the small print.  If at all possible, find a lender that will be flexible if you choose to pay off your loan early (i.e. they won’t charge you a penalty payment to do so). Payment holidays can also be an added bonus. You may discover that various lenders will set some limits on what you can do with your car loan. This type of specialist loan requires you use it for the reason that you originally specified so some flexibility could be lost. As an alternative, you can take out a general personal loan.