When customers are looking for finance of any kinds, they always want the lowest or the cheapest rate out there. Most of the time, the bank does offer the lowest rate like 2.99% APR. If you want rates like that, the bank will charge a high fee. For example: if you want to borrow A5000 at 2.99%APR, the bank will probably charge you A799 fees. Therefore, you are getting a loan for A5799. If you work the add it all up, you are paying a lot more. The bank loves to attract customers from their low APR but they will get you from the fees.
Sometimes, other finance company will give you the best quote but usually cannot beat the low rate from the bank. Most of the finance instituation, don’t charge any fees because they make their money through the lenders.
Therefore, make sure when you want to borrow money for a car finance, personal loans, mortgages and etc? Always ask for your monthly payment and how long is the terms. You will want the lowest monthly payment. Make sure they don’t charge you any fees.
There are also 2 different loans type to consider. Unsecured and secured loans. Unsecured loans means if the customer did not keep up with the payment, the only penalty you will get is a big default and a CCJ. You will not have to hand the car back.
Secured loans is a different story. If the loans are secured on the car or the house and you have not keep up with the payment. Then, the finance company can come and knock on your front door to get the car back.