Many Britons Use Personal Instead of Auto Loans

Per Alliance & Leicester, more than 2/5ths of Britons take out personal loans instead of auto loans to pay for their cars. They also report that they mostly do it to pay for used cars instead of taking out a used car loan.

They find that the terms and the interest rates are much better on personal loans than they are on auto loans, which is making them much more attractive to them. More than a quarter of the respondents to the poll said that they do it to pay for their used car loan.

One in ten Britons said that the personal loan was the best way to get a car loan, and 3% said that they also used personal loans to pay for motorcycles and caravans. There were also those that used the personal loan for things such as home improvements or extensions to their homes, but the number of people who used it instead of a car loan was surprising to many people.

Experts said that as a rule they were not surprised by the number using personal loans in place of auto loans because the automobile financing that has been offered at car showrooms lately has not been competitive.

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