CAR LOAN
You own the car
The bank lends the amount; you repay in fixed instalments with interest. You own the vehicle from purchase.
✅ PROS
- Owner immediately
- Can resell at any time
- No mileage cap
- Free to personalise
❌ CONS
- Higher monthly payments
- A deposit is often required
- You bear the depreciation
LOA
Hire with purchase option
You hire the vehicle and may buy it at the end at a residual value set in advance. Suited to new cars.
✅ PROS
- Lower monthly payments
- New car more accessible
- Choice to buy or return
- Manufacturer warranty still active
❌ CONS
- Contract mileage is capped
- Fees if you exceed it or cause damage
- Not the owner during the contract
LLD
Long-term hire
You hire without ever buying. The vehicle is returned at the end. Often used by businesses or people who like to change regularly.
✅ PROS
- Fixed, controlled monthly budget
- Servicing often included
- No resale to manage
- Always a recent vehicle
❌ CONS
- Never the owner
- High total cost over the term
- Mileage capped
In short
Loan
You own the car; total cost is higher
LOA
Option to buy, lower monthly payments
LLD
Maximum simplicity, never the owner