Financing Or Loans To Buy New Or Used Cars
by ANTHONY CAUSEY
Every one in the world dreams of owning a new car.This dream is only accomplished by some.Some people cannot afford to buy a new car,but most people who cannot has an option.Financing is available to those who wish to own a new car. About 70% of the new cars that are bought are financed.So this brings more and more people; owning a new car.
People who would like to buy a car whether used or new, but cannot afford to pay the total cost immediately can go in for car finance. Being able to get financing or loans for a new or used car,your credit history plays an important role in achieveing finacial success.
Some of the financial institutions will deny loans for people with bad credit history.Having good credit will be a plus when buying a new or used car.Financing options should be investigated before making a move to finance a new or used car.
Financing or loans for buying a new car or a used one: 1)New car is always the first choice of every one. 2)A new car comes with a huge price and a negative factor called as depreciation with it. 3)Nearly 20% of the new cars price will be depreciated once the car is out of the Show room.
So at this time,some start thinking of going for loans.There are agencys that will cover 90% of the total cost.Generally banks offer the loan at a lower interest rate when compared to the dealers, but the processing time of the banks may be a bit longer when compared to the dealers processing time.
There are other financial agencies other than the dealers and the banks, which can finance for the cars that are being bought.These are Independent finance companies which are specialize in car financing.These companies often have the lowest interest rates.
Sometimes new and used cars are being financed directly by the dealers and in many cases the banks tie up with the dealers. But keep these things in mind before choosing a finace company.
1)The rate of interest is one of the most important factors which have to be considered before going in for loan.
2)The term of the loan affects the rate of interest.
3)The shorter the loan the rate will be lower.
4)If the term is shorter then the payments will be higher.
5)The next factor which affects the rate is that the newer the car the lower the rate of interest,But if it is a used car then the rate will be higher.
There are many sources from which financing can be available to buy a new or used car.Dealership mode of finance is convenient, fast and competitive,but it has the disadvantage of having high interest amount added to the loan in the beginning.
When searching for agencies to use for financing or loans to buy new or used cars,credit unions are another source that can be looked at. Remember,do your homework and use car loan payment calculators to verify car loan interest rates and payments.Good Luck in finding Financing Or Loans To Buy New Or Used Cars.
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