My opinion is that it'd be better to spend just a few hundred pounds than be under the thumb of a lender for several years. I bought a car not long ago for £300, kept it for 4 years and sold it for £350. If things go wrong with a car like that, there's always the option to scrap it. The scrap value of cars is around £200. If you spend £5000 on a vehicle, your options are more limited when things go wrong. Spending a lot just makes any problems that much greater in my view.

I would, however, say that a personal bank loan is more flexible than car finance plans.

First about myself. I have an excellent credit profile. I have a professional studies loan which I am currently paying off. The car needs changing but I'd like to get something that I can keep for a while without the need to change it in 2 or 3 years. So I'm looking to borrow about £5,000 plus put in a bit of my own savings.

The options seem to be either to get a finance deal from one of these car dealers themselves, or to go to my bank (HSBC) for a personal loan or use a lender from Moneysupermarket etc. for a loan.

I'm wary of asking around too much and messing up my credit profile, and I wondered which option is likely to be the best in terms interest rates. Does anyone have any experience with this?

Thank you!