EV loans

Vehicle Loan Options

Vehicle Loan Options

Vehicle Loan Options

A car loan is a type of personal loan taken out for the purpose of buying a new or used motor vehicle. A car loan is also called a vehicle loan. Generally, the rate you are offered will depend on your individual circumstances.

The total cost of your vehicle loan is calculated as follows:

  • The new value of the car
  • The length of the loan
  • The fees
  • Credit report

As with a car lease (or any loan for that matter), you’ll need to accept a personal credit check which assesses credit strength and possible risk status.

The different loan options

  • Secured Loan
    A secured loan is one where you offer ‘collateral’ (such as the car itself) to provide more security to the loan provider in case you fail to repay the money you have borrowed within the agreed timeframe. If the sale of your collateral does not cover the full amount you owe, you will have to pay what is left directly to the lender.

  • Unsecured Loan
    Unsecured loans do not require any collateral. The lender will rely on your credit score to approve the loan. Unsecured loans have higher interest rates and you may not be able to borrow as much.

Important loan details

  • Requires initial deposit
  • Ownership at the end of the agreement
  • Fixed monthly payments
  • Final balloon payment
  • Excess mileage charge
  • Required collateral
  • Service & support issues
  • Battery included (it may not be!)