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A Sainsbury’s bank loan could help you purchase a car ranging anywhere from £1,000 to £25,000, or potentially more if you’re combining this with some of your own savings.
There are various different ways you can finance the purchase of a car. Each option will almost certainly require you to commit to monthly payments, so make sure you carefully work out your budget and choose an affordable option. Don’t forget to take into consideration other costs you’ll need to pay out, such as road tax, insurance and MOT, before making your final decision. Late repayments will damage your credit score, making it harder to source finance in the future.
One advantage of buying a car with a personal loan (over a leasing option) is that you’ll own the vehicle outright from day one. Another advantage is that you won’t need to put down a deposit (although if you can finance some of the purchase from your own pocket, you’ll save money in interest).
If you choose to finance your vehicle purchase with a personal loan from Sainsbury’s bank, and you think you’ll want a financial breather after you’ve bought your new wheels, then Sainsbury’s offers the option of a two-month repayment holiday at the start of the loan. This can be really handy at a time when you’ve probably also had to fork out for insurance and road tax, but remember: if you opt to take a repayment holiday, then your loan will still accrue interest during this period – it’ll cost you more overall, and you’ll be paying the loan off for a little longer.
Sainsbury’s also offers a price guarantee on their loans, so if you’re offered a ‘like for like’ car loan with a lower APR let them know!
Warning: late repayments can cause you serious money problems. See our debt help guides.
These loans are unsecured – meaning they’re be based on creditworthiness, rather than the use of property or other assets as collateral. Here are some of the key features at a glance:
The cost of your car finance will depend on factors like how much finance you want, how long you want it for and your credit score.
All lenders must calculate the APR of their products in the same way and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison, alongside other features such as the total amount payable.
Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.
Sainsbury’s does its best to help anyone that can afford to finance a car. However you will need to meet the following criteria:
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