Other than purchasing a property, buying a car is the most expensive purchase most people will ever make. Whilst a reasonable second-hand car can be purchased more economically, a new car will cost well in excess of £10,000. This means that the majority of people can't afford this sort of financial outlay and turn to a car loan.
Is a Car Loan a Necessity?
Saving for a car costing upwards of £10,000 could take several years. Should a vehicle be required to get to work from a rural location, waiting 3 years to save for a car isn't an option. However, if public transportation links are reliable, a car loan may be something that can be avoided. This is more likely to be the case if at least one family member has a car that can be utilised for social purposes.
