What Is The Significance Of A Car Finance?
Any loan taken for the specific purpose of buying a car is known as a car finance loan. Buying a car requires a huge amount of money at once, and loans help in covering the purchase cost. However, there are some extra fees and some interest rate involved in paying back the loan.
What Are The Types of Car finance We Provide?
We provide the three major types of loans to help you buy your car:
- Personal Loan: It is a good option if you want to get a loan without any collateral. An unsecured form of a loan, it involves borrowing a specific amount from us for a set time period. It can be repaid in monthly installments. It allows you to buy the vehicle instantly, and as the loan has to be paid off in installments, it is extremely convenient.
- Hire Purchase: In a hire purchase agreement, you are given possession of the vehicle as soon as you make the agreement, but ownership is given to you only after all the installments on the vehicle are paid. You can make monthly payments to the car finance company and the car is yours to drive as soon as you pay the first installment. However, on default, the company has the right to take back possession of the car from you.
- Personal Contract Purchase: It is similar to hire purchase in nature. You make monthly deposits with the car finance company until the entire amount is paid. The interest rate is lower if you pay back in larger installments. It also offers lower interest rates if compared to hire purchase in general because here you pay off the depreciated value of the car instead of paying off the value of the car on its date of sale. At any time during the contract period, you can decide to terminate the contract and return the car.
Is A Car Finance Loan Guaranteed?
There are a few requirements in order to be able to get a car finance. The candidate must be a major, i.e. above eighteen years of age. The car finance companies also evaluate your ability to repay the loan, your financial security, reputation, and your current income. Every company has its own unique requirements, and it is possible that some car finance companies may accept you, while others may reject you. One should apply carefully, as applications to too many car finance companies all together are taken as a bad sign by companies.
What About Bad Credit Car Finance?
Nowadays, many car finance companies are willing to give loans to even those who have poor credit reports. All that is needed is that they qualify certain terms and conditions, and they can enjoy the same benefits as those who have better creditworthiness. It is important to plan how to finance your car and car finance companies help you do that in the best way possible. So if you are planning to buy a car, it is a good option to approach a car finance company.