When deciding to change vehicles, it is very common to consider the need for a specific car loan. This loan is the help that allows us to buy the model that really interests us, without having to lower the benefits of the car to lower costs. In the motor sector it is more than usual to finance purchases , however, if you are thinking of changing your car keep reading to find out which loan is best for you Read http://www.horsebackarcherygr.com/easy-car-loans-for-bad-credit-apply-for-car-loan-online-with-bad-credit/ for a critique
Car loan, the help you get to get what you want
In general, it can be said that there are two types of loans that car buyers can go to in order to carry out this transaction in a comfortable and simple way:
- Loans made by the dealer who sells the car.
- Loans granted by a financial entity.
Whether one or the other type of financing is chosen, it must be taken into account that in both cases it is necessary to have initial savings, specifically an amount equal to 10% of the value of the vehicle to be purchased. The main characteristics of both types of loans are shown below to have all the necessary information when choosing the best way to pay for the purchase made.
Comparison of financing in a dealer or a financial
The main characteristics of the loan granted by the dealer who sells the car are:
- It is usually one of the incentives to buy the car, since after all the dealer is interested in selling and thus facilitates the transaction.
- They accept the used car regardless of the brand in exchange for a discount on the price of the new car. This is a way to make a profit on the old car without having to find a buyer, a quick and easy way to get an extra contribution for the purchase.
Regarding loans granted by financial institutions, the main characteristics are:
- Unlike dealerships, they do not require you to take out life and unemployment insurance. In other words, in the loan granted by the dealer, the total cost of the insurance that must be contracted is added to the value of the car and the interest is applied to the total.
- Financial institutions finance vehicles below 6,000 dollars, unlike dealers. That is, if the new car has a lower value or is second-hand, the financial institution will be of great help in obtaining financing, while the dealer is not the way to go.
Key aspects to choose the best loan
There are a number of key factors that you should look at before making the decision about the financing to use, and these are:
- You must know the amount that can be requested and the period in which that amount must be returned. It is recommended not to dedicate more than 35% of the income received monthly in a home for the repayment of this loan. In case you can not assume any fee, ask us about the option to refinance loans.
- The total cost of credit, including interest, must be known so that the money to be returned is really known.
With these indications, you can have all the information to decide the best financing and purchase the vehicle you need.