What are some of the best types of car finance loans?”
There is generally two types of car loans offered by car finance companies: a personal unsecured loan and one secured on the car. The loans are usually offered over a repayment period of between 5 to 7 years, with the term of the loan especially much depending on the age of the vehicle that you are buying. Some lenders do not provide finance for motor vehicles that are over 7 years while others reduce the term period. This differs from lender to lender so be sure to ask the lender about their policy on old cars. A finance broker specializing in vehicle finance may also be able to help you with this. As well as very old cars, some lenders do not accept car loan applications for vehicles that are imported. If you are purchasing an imported car a personal unsecured loan may be your best alternative. Note that personal unsecured loans are charged higher car loans interest rates than secured loans.
Edmunds.com has the pluses and minuses of each method of car financing: Car Financing: Buying vs Leasing By Philip Reed, Senior Consumer Advice Editor Since most people don’t have the cash to buy a new car, it often comes down to a decision between leasing and buying with the help of an auto loan. Here is a quick look at the main benefits of each type of car financing. Lease or Buy? It’s Also a Lifestyle Decision First, it’s important to understand that the decision of whether to buy or lease isn’t just a dollars-and-cents decision. It depends on the intangible importance you give to owning a new car. If the image of driving the latest model is essential to you, then you’ll justify spending more money for this privilege. If you look at a car as merely transportation, then owning the newest car on the block will be lower on your priority list. Give these questions some thought as we move on to the more tangible issues of buying with the he
