Today I bough a new car with a balloon payment financing deal at 5.8% APR. I have never bought a new car - but my old 2lt 7 seater wagon just drinks petrol costing me £80/week just to get to work. I dont ferry my kids around anymore and drive this empty bus to work on a minumum 3hr round trip each day 5 days a week. My thinking was that I would buy a small used car which would halve my petrol costs and the savings would pay for the loan to buy the small car - (wagon worth £500! needs £3k work) - so thought I wuld buy something for 7ish with a tesco loan so monthly payments would be £160 (petrol saving) - but got seduced at the garage by a new car £11k but managed to neg it down to 9,800 and it "ONLY" costs £154/month on their finanacing deal - but after 4 years need to give it back or pay £4k -- I have never done ths before. Is it just the same as getting a loan from Tesco - or is there a catch?