Everything You Need to Know About Getting A Car Loan
When you own a car, people view you as a prosperous person. A car also serves as a quick transport means. Therefore, people strive to own t least one car. Although cars are expensive to buy and maintain, you can take a loan to buy one. If you decide to take a car loan, there are several things you need to know. As such, we are giving you a comprehensive guide:
How Much Are You Eligible For?
You need to know your budget before applying for a car loan because the amount will depend on the cost of the car. The lender will also determine how much you should pay in monthly installments. Therefore, you need to determine your budget and savings.
Various Types of Loans
There are four common types of loans:
The amount of loan you can get varies depending on the interest rate charged by the lender. If you opt to lower the interest rate, the installments also decrease, and vice versa. In a variable loan, the interest rate is lower than on a fixed loan.
As its name suggests, the interest rate for this type of loan is fixed throughout the loan tenure. The monthly loan repayment remains the same irrespective of the market rates.
In this type of a loan, your car is at the risk of being repossessed if you default in payment. This is because the very own car you own is used as collateral should you fail to pay it.
This is the opposite of the secured loan. In this type of loan, your car is not at risk of being repossessed should you fail to pay your dues. However, you need to show proof that you’re capable of paying your dues before you get the loan. This means that you should have a good credit score.
What Brand and Model Do You Want to Buy?
The model and the brand you choose will depend on your financial capability, and whether you want an old or new car. If you opt for the latter, there are specific types of loans for that. If you want an old car, you need to determine whether the car’s model and age are worth taking a loan for. There are instances where you cannot obtain a car loan for phased out models.
Apart from a basic loan, you can also opt for special features depending on your needs. These include:
This feature allows you to make additional repayments of your car loan and save money by completing the repayment sooner.
No early repayment penalty
This loan feature allows you to pay off your entire car loan when you have excess money without getting penalized or charged a higher interest rate for early repayment. This is a really great feature as you get to pay your loan sooner than its intended tenure if you have some excess money in your pocket, thereby freeing yourself from the debt.
More inLuxury Cars
These Cars Are Made For You If You Love The Outdoors
While we would never advocate selling your home and living in a car if you like traveling for long periods of...February 8, 2018
These Cars Are Built For Comfort
Some people enjoy bragging about how powerful their cars are, how quickly they turn, and how many gadgets they have. However,...February 8, 2018
This Is How A Car Donation Can Change Lives
Every donation helps, but some stories that include donations leave you with a warm feeling inside that you rarely experience. These...February 8, 2018
How To Reach Financial Freedom
We are not going to give you some magical advice that will turn you into a millionaire, but you would be...February 8, 2018
Giving Your Car Away? Check Out These Worthy Charities
Charities use donated cars to transporting people and haul goods. If you have a vehicle that you are no longer using, consider...February 8, 2018
Truths and Lies about Donating A Car
Many people have a vehicle that has gone out of style and isn’t exactly needed anymore. Others have one that requires...February 8, 2018
Are You In Any Of These Situations? You Need A Financial Advisor
Most people believe in doing everything themselves. They even chose to manage their finances without the help of a financial advisor....February 8, 2018
Live In The City? These Cars May Be Perfect For You
While driving within the city limits is a lot more restrictive and, honestly, annoying than having the freedom of a highway,...February 8, 2018
Which Charities Should You Donate Your Car?
Many people are hesitant to let go of their cars (even if they no longer need them). However, some people readily...February 8, 2018