Car finance in the UK is accessible for people who have come to an agreement on the price of the car they want to buy, most find it difficult to pay cash in lump-sum due to a number of reasons. The easy way out of this issue is to buy the car by financing it, through dealership, an online financial institute, home equity loan, a bank or credit union. Each of the above mentioned ways for car financing has their benefits and down-sides.
The advantages of financing you car through dealership are that it is competitive, fast and convenient. The disadvantage is that loan is front-loaded, i.e. interest rate is higher at the beginning. Moreover, the dealers add their margin on the interest rate before they pass it forward to the consumer. It may sound unethical but it is legal so determining of interest rate is a real spot for bargaining.
In this case, the rates are competitive and there is no sales pitch for additional items. Banks in UK have completely stopped offering car finance deals as with the economic crash, it's too much of an uncertainty that people can repay the car loan.
The objective of ads on television is to pull-In a customer and then reveal the actual interest rate that is applicable as per your credit rating, that is, if you are a loan risk then be certain to get a higher interest rate. Another element that reflects a rate change is the term of the loan, the short-term loans have lower interest rates and long-term loans have higher interest rates. Though it may sound strange yet for some odd reasoning geographical location may also play a role in determining the interest rate.