Cars often have to be traded in because they are wearing out or you are simply just tired of them and would like to have a new one. However, automobiles are expensive and most of the time you do not always have the available cash to purchase one.
One of the best things to do to acquire the money even for a down payment is to take out a loan. But which loan would be the best kind to take out. This depends on several different factors. First, if the auto is a new one the car’s value is going to be very high. If the car is a luxury car the total overall price will be even more. So how does a person get enough money to drive that new car home?
Types of loans
PCP loan
More than likely if the auto dealer is a reputable dealer there will be a representative that may be able to help you. These financial representatives can call several different companies to find a company that will give you a loan based on your information. You most likely will grant a personal contract purchase. Be very careful with these sorts of loans; be sure to read the fine print. You could have limits on these types of loans and you could end up paying extra at the end of the contract period. This some times happens when you try to rent or lease an auto.
Hire loan
The representative of the dealer may set you up with a Hire purchase loan, which means that the lender will own the car until it is completely paid for.
Secure loan
Some people had rather go outside the dealer for a car loan, simply because they can get a better loan with much nicer benefits. For instance, a bank or a bonafided or popular lending institute will offer you a non-secure or a secure loan. The bank will grant a secure loan for your auto provided you put up some type of property as collateral to ensure that the lender will get their money back. Collateral can be anything, such as, real estate, the auto that you are purchasing or any thing of more value than the amount of money that you want to borrow.
Non-Secure loan
If the auto that you want to purchase is a used one, you may want to go and apply for a small payday loan. They are non-secure loans and you may only borrow a small amount of money at a time. However, with these types of loans there is no credit check and usually all you will have to show approximately 3 check stubs to verify that you have a job and your social security number. It usually takes only an hour or so before you find out if you have been approved or not, and you can have the money sent directly to your bank or request a check.
There are so many types of car loans available to you, you should not have a hard time acquiring the amount of money that you need for the car loan.