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Sainburys Car Loan

The basic Sainburys car loan is the same as its normal loan offering, but there is a leasing option called Bank Drive. Like all such deals you pay a fixed rate (depending on the vehicle and your credit) to drive across a fixed term; e.g. three years. Then buy the rest of the car, pick another car, or just give it back. The deal is good, and includes a zero deposit option, but check other specialist car finance companies first.

Sainburys Car Loan examples (correct at publication date, uninsured, different rates apply to Bank Drive):

  Monthly Repayment APR
£3000 across 2 years £139.90 9.9%
£5000 across 5 years £100.09 7.2%
£10000 across 7 years N/A N/A

For car buyers, the Sainburys car loan offers two options. The basic car loan is no different from their standard loan; and therefore has the following points to note: on the upside if you need to seal the deal on a car fast, they will send the cheque to you by courier (at a £35 fee). On the downside, redemption penalties are high and once the contract is signed there's no cooling off period: you'll owe the money.

The second Sainburys car loan is called Sainburys Bank Drive, and it's basically a hire purchase scheme. As with all such schemes, you choose the car and Sainburys will offer you a monthly repayment scheme based on the value and depreciability of the vehicle; across a set term (usually 3 years). At the end of the term, you can pay a final instalment and keep the car, pick another car, or simply give it back and terminate the agreement.

Now, don't be fooled that the Sainburys car loan is some kind of charitable operation- you will pay more per motoring mile than if you bought the car outright. And unless you pay at the end, you won't have a car at the end of the deal. And they make their money, because you are paying for the part of the car's life when it depreciates the most. But this does mean fixed-rate motoring; it means you could have a better car than you thought possible, and in particular Sainburys can even offer a no-deposit option.

If you're considering the Sainburys car loan, do investigate other hire purchase and leasing companies; and if you're in any way associated with a company, consider the tax implications of who owns the car: you could make a killing just in tax savings if you make the right decisions.