February 1, 2010, 4:12 pm
i personally would get finance with the dealer. You can haggle the interest rate, done it many times. Don't let them tell you they can't because they can, usually the company does its own finance.
Also i always get a deal with a baloon. With a bank loan you cannot have a balloon. This depends on what you wish to spend.
Pay little deposit as possible.
Then when i have paid half my term plus interest, I can simply hand the car back, and walk away, because most contracts from the dealers say you can do that, with no penalty. A bank won't let you do that.
for instance i bought a Aygo for my missus. I paid £1000 down as deposit, 3 years at £109 a month and a 2k baloon (ish) and a pretty low rate interest
Now if i got in to trouble at halfway point, i could simply hand it back in and walk away. Of course you only do this if you are in the deep stuff. If your happy with it then continue. Also dont do this if the car is worth more than the finance owed
Defo get some advice mate, don;t jump on the finance ladder until you are comfortable, and screw the best deal.