Is it easier to buy a car with cash or loan?
Paying Cash. When you purchase a car with cash, you can do whatever you like with it for as long as you'd like. Paying this way can make it easier to sell your car. When you get a car loan, the bank holds the title, which can complicate the selling process if you want to change cars before you've finished paying it off.
How does a car loan work?
The lender marks the loan as settled on your credit file, and you have nothing left to pay. This guide focuses on personal loans, though before you go on, do check these alternative types of car finance to assess if they'd suit you better. Broadly speaking, there are six different ways to pay for a car.
How can I pay for a new car with a loan?
You can take out an unsecured personal loan or a secured loan through MoneySuperMarket and use it to pay for your new car. You can usually pay off your loan early, but you may have to pay an early repayment charge. Ask your lender to send you an early repayment settlement amount so you can see how much the charges will be.