A Bank Loan is a way to buy a car outright using funds from a bank instead of a finance company.

With a bank you can financing a car purchase over a fixed period by borrowing from your bank (or another bank, perhaps if better terms are available), usually without having to offer any form of security for the loan.

You make monthly repayments that cover all of the money borrowed, plus interest charges.

Normally you make the arrangements direct with the bank and the money is credited to your bank account, from which you then pay the supplier.  You then become the owner of the car immediately.

Your loan may be for the full amount of the car, or you migh only borrow part of the cost, perhaps putting in a deposit from your own savings.

Some lenders may require that you put in a minimum amount, typically 10%-20% of the purchase price in order to obtain a loan.

Advantages

The car is yours from the beginning of the loan and if borrowing from your own bank you may be able to negotiate a lower rate of interest depending on your personal banking record.

Disadvantages

Because the loan repayments cover the full purchase price (or most of it), rather than just depreciation, the monthly repayments are typically more than those of Personal Contract Purchase.