• Low headline rate of 8.0% APR typical for loans £7,500 to £14,999
• Fixed rate of interest
• Optional 2 month payment holiday
• No set up fees and no hidden costs

Buying a car, a motorbike or a motor home is one of the biggest and most important purchases many of us will make, second only to buying a home. It is therefore vital that you shop around for the best vehicle loan possible. It's not good to get locked in to paying for a vehicle for an extended period of time - it loses too much of its value for a long term loan to be a viable finance option. Remember that vehicles can depreciate quickly, so it's a good idea to pay off the loan over the short term. While the monthly payment may be higher, the interest over the life of the loan will be lower, so you'll pay less overall.

Loans available to UK residents and over 18's only. Rates depend on circumstances and loan amount.

New vs pre-owned vehicles - what's the best choice?

Buying a vehicle is a major financial commitment and a decision that has to be carefully considered. The first step of that decision is whether to buy your vehicle new or used, so it's good to think about the advantages and disadvantages of both.

Some of the major factors to consider when buying are cost, the rate of depreciation of the vehicle, warranty, safety, reliability and condition.

Cost

If you compare prices, it may appear cheaper to buy a used vehicle, and it may work out cheaper in many deals, but it's important to remember to factor in other costs. A used car, motorbike or motor home, for example, may incur a higher insurance premium, or it might be more expensive to repair than a new vehicle, with more expensive spare parts.

Depreciation

Vehicles depreciate as soon as they are sold. It is estimated, for example, that a new car can lose up to 40% of its value within three years due to depreciation, although this is an average figure. There are some models that will hold their value better than others, and it also depends on mileage and condition of the vehicle. But it is generally accepted that one of the biggest drawbacks to buying a car brand new is that it loses significant value the minute it is driven off of the showroom floor.

Warranties

If you buy from a reputable dealer, you may receive a limited warranty on a used vehicle. To find a reputable dealer in the UK, look for a Retail Motor Industry Federation sign. When buying a new vehicle, however, a comprehensive warranty should come standard with your purchase.

Condition

One of the biggest deciding factors when it comes to buying a new or a used vehicle is its condition. Although many used vehicle owners may be rightfully proud of the condition of their purchase, there are some who would argue that there's nothing that can replace the quality of a new vehicle. When you buy a vehicle brand new, you buy a set of specifications that have to be met by the manufacturer, so the condition is guaranteed. Even a really well cared for used vehicle will not deliver the same quality.

Reliability

Although it may seem strange, new vehicles are not always more reliable than used - a new vehicle is untested on the open road and you cannot be sure of how it will handle. A well cared for used vehicle that has been put through its paces can be more reliable because its ability has been proven.

Safety

With so many standards imposed on manufacturers, new vehicles are fitted with a range of safety features. However, these vehicles have been in the market long enough now, so that many used vehicles now offer the same level of safety features as a brand new model.