The specific purpose of this loan is for buying a car or other vehicle. The loan amount will depend on the lender of your choice and the product choices they offer. Before agreeing to the loan amount you want, they will view you credit history along with your income and outgoings. Often lenders will limit the car loan (usually at £25,000+) so you may need to shop around if you want to spend more than that. Car loans are really a standard personal loan product and easy to organise. The big advantage here is that you won’t be taking out a dealer finance – which would end up costing you much more to get the same amount of money. Often with a dealer, they may limit you in what you can actually buy and the location you can buy from. This isn’t always the most cost-effective route you could take. The loan period will depend and vary on the type of loan you use to finance your car/vehicle purchase and the lender you choose, but generally from 1-25 years.
