Car finance is now one of the best options anybody can avail if his savings is not yet enough to purchase one. And even if they have enough money to buy a new car, some would still opt to avail car finance as they don’t want their savings to be wiped out in an instant. Cars no matter what type are expensive, and if you want a particular model, then through car finance you can surely avail of that as car finance is a lot easier to avail than when you will apply for a conventional loan.
To give you some of the most common types of car financing that you can avail, here are some of them:
With this option, the buyer will actually apply for a loan from his preferred lender and he will have the option to really pay the full amount of the car. In such a way, the car will be completely his like it will be registered in his name. Because of that, he also has the option to either trade the vehicle or sell if he chooses to.
In this type of car finance, the buyer will make a deal with a car dealer. The deal will be that the buyer will give a down payment like 10% or 20% of the full amount of the car. And then, he will pay the remaining amount on a monthly basis in which the amount will be depending on what is agreed between them. The buyer cannot fully assume the ownership of the car until he will pay its full amount.
This option is a little like refinancing. So, for those who are homeowners or who have a property on his name and is still dealing with an existing loan, he can use his property for a re-mortgage application and can then make use of the extra money to purchase his preferred car.
Interest-free car financing
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This type of car finance is good for new cars only. With this option, the buyer can avail of the car without really paying any interest on the total amount of the car.
Personal contract purchase
This is the type that is usually utilized by banks owners. With this type, it is the bank who will pay for the car. The buyer will then pay for the car through his bank account from that particular bank. The duration of the payment will usually last from two to four years.
There are still a number of car finance options that any buyer can avail. And if you are really interested to check out which of these types of car finance will suit your situation best, then take the time to check in the online resources or you can ask your friends who have been into car finance as well. Just bear in mind that just like home loans, you have to be responsible for your monthly dues or your car will be repossessed.