Personal Loans

Personal Loans
Personal loans work in exactly the same was as Hire Purchase loans and are based on a fixed period of borrowing with equal monthly repayments.

The main difference between personal loans and hire purchase loan is the fact that the loan is not secured on the vehicle, meaning that you sell the vehicle at any time without paying the loan off.
In contrast to this, personal loans are not covered by the consumer rights act so any dispute would be between you and the dealer.

In general, a personal loan is more difficult to obtain than hire purchase as the finance company does not have security over the vehicle.