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Understanding Car Finance

If you're unsure where to start or whether Car Loan 4U's right for you, then these pages can help take the mystery out of it all.

What is Car Finance?

Let's start at the beginning. Car finance includes various different types of contracts which allow you to make monthly payments for a vehicle. (Not necessarily just cars - we can help with motorbikes, vans, caravans and more). It's secured on the vehicle, which means that the lender owns the vehicle (often they'll send the money straight to the dealership) and then you make payments to the lender. You don’t own the vehicle until all the payments due under the agreement have been paid in full.

  1. 1 Graphic of a car and some money

    The lender pays the dealer for the car

  2. 2 Graphic of a calendar

    You make monthly repayments to the lender

  3. 3 Graphic of a contract

    You own the vehicle once all the repayments are made

Car finance works as a way of getting ownership when you don't have the cash to pay upfront, making it a convenient way to pay for a vehicle. Any finance plan should be based on your budget and credit profile, so you can get monthly payments which are affordable.

Types of Car Finance

What Else You Need to Know About Car Finance