Auto purchases or repairs

What is an auto purchase and repair loan?

An auto purchase or repair loan is an agreement between you and a lender to borrow the funds necessary for the purchase of a new vehicle. These agreements are paid back on a monthly basis with interest (installments).

Routine car maintenance includes oil change, tires, batteries, and many more.

You could try to save an average of $0.9 per month to help you in case of emergencies or check out our “How it works” page if you need and extra cash quickly or visit Lending Wing for loans from £500 to £50.000 fast.

How does Auto purchases or repairs loans work?

There is more than one option. Firstly, there is a direct loan. This will be arranged with a lender directly by yourself. Secondly, there is an indirect loan that is arranged through the dealership. Thirdly, you may be able to lease the car. This involves paying a fee monthly and giving back the car after approximately 3 years.

What to consider (negative points/ risks)

  • You may be penalised for going over a set mileage per annum, or for extreme wear and tear, such as dents and scratches.
  • If you wish to purchase the car at the end of the lease, it could cost you more money than if you had bought it in the first place.
  • Interest rates can be higher on used cars over new cars.
  • Until any loan is paid in full, the lender holds the title to the car.

Benefits

  • There may be lower interest rates for a new car than a used car.
  • A loan or lease saves having to find a lump sum in which to buy the vehicle outright.
  • A loan can ease the strain on your finances by budgeting a set, yet affordable, monthly amount to repay.
  • A loan will allow flexibility as you can decide how long you’d like to repay the loan and spreading it out.