Hire Purchase 3

Is a Car Secured Debt?

Car loans can be secured or unsecured depending on the nature of the loan you take out.

A Hire Purchase agreement is a common method for buying a car. This agreement is secured against the car, since you will not legally own the vehicle until all payments are made. So, if you fail to make payments, you could be at risk of having the car repossessed.

 

However, if you take out a personal loan to purchase a car, then this will be unsecured.

 

To find out more, take a look at our Secured Debt page.

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