Car purchases are rarely like other buying decisions. Even in the early days of car ownership schemes existed allowing car buyers to avoid paying the full price up front. Car leasing is becoming ever popular, but the leaser is taking a gamble that you’ll be paying more than the depreciation on the vehicle – and they’re almost never wrong. So why not take the car leasing company’s profit for yourself by financing your car purchase with a loan instead? With interest rates at record lows, it’s unsurprising that Yorkshire Bank has been able to offer a market beating car loan of just 4.9% APR.
The loan is set at fixed interest rate and won’t even vary if the Bank of England change their base rate. This is ideal for the risk adverse, and a sensible decision to make as talk of increasing interest rates has become increasingly frequent. Even variable loans from other providers don’t offer such a great rate, making this loan the best of both worlds. The 4.9% APR is ‘typical’ meaning that at least 51% of those applying for the loan are approved with this rate, so if your credit score isn’t up to scratch or your personal circumstances aren’t ideal then you may be offered a worse rate.
Yorkshire Bank’s (YBonline.co.uk) car loans are very similar to their personal loans, with both offering loans up to ¬£25,000 (a minimum of ¬£1000 borrowing is required), with fixed monthly repayments over periods between 1 and 5 years. Yorkshire’s car loans are unsecured, meaning you are not offering your home as collateral. You don’t even need to be a Yorkshire Bank customer, or even based near “God’s Own Country” to apply – instant decisions are made online. The money is transferred fast into any bank account you choose, making this a speedy option if you need money to pay for a car in an emergency such as after a vehicle breakdown.
Should your financial circumstances improve, you can always opt to pay off your loan early – in full or in part – with an early repayment fee of just 58 days interest.