Personal loan v's car finance

P

paulandrew

Guest
Hi, I'm looking into buying a new/ second hand car.

Are car financing companies a ripp off?, I was thinking of doing a loan over 4 years with a baloon payment at the end to reduce the monthly payments?

Am I better off going with a personal loan?
 
Much of a muchness pricewise i would think. The only different between a bank loan and finance is that the finance company own the car until you finish paying them back. The loan is secured on the asset. Where with a bank loan, you own the car and just owe the bank money.
Technically speaking with finance you cant actually sell the car without informing the finance company as they own it.
Why would you do a balloon payment at the end. If you have the cash why not just pay it at the start and borrow the rest?
 
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