Car Loan.

A car loan is similar to an unsecured loan:

This means the loan is not secured on the car. This is less of a risk to you, the borrower, as if you find yourself unable to make the monthly repayments, you will not lose your car.

However, this type of loan will have a slightly higher interest rate due to the fact that it is a higher risk to the lender.

Your loan will be processed much quicker too, so you receive the loan much quicker than you would with a secured loan.

Car loans typically range from £5000 to £25000, and are usually paid back over 3 to 5 years, depending on the amount.

Another type of car loan is the one you get from your car dealer. This loan is not taken through your bank or other high street lender but from the car company itself. This type of car loan is popular but beware of the interest rates. You may find them higher than they would be elsewhere because of the convenience of this loan.