Nothing gives the joy of ownership more than that of owning a car. The freedom and independence it represents are a delight in every car owner’s heart. The experience of driving down a lonely stretch of asphalt on a cold summer afternoon is a memory no one will soon forget, and since the invention of the automobile, it has come to represent so much.
It used to be that acquiring a car was as easy as pie, but with the emergence of ATMs, flat-screen televisions, computers and sad to say, inflation, cars have had their share of increases in price and that once readily available dream has become tenuous and liable to disappear with merely a lousy credit history or an unfairly high Annual Percentage Rate. But don’t bow your head yet. You can still be a car owner because all is not lost!
Fortunately, there are still a couple of ways of getting that desirable vehicle you want without killing yourself with the payments. Let’s look at the options available out there.
Unsecured personal loan
The first one on the list is the unsecured personal loan. This kind of loan uses no assets (like your house or land) as security for repayment of the loan. Instead, the basis for this loan is your liability or ability to make the monthly payments. An automobile purchased in this manner is automatically owned by you and eventually resold at whichever time you choose.
Secured personal loan
Unlike unsecured loans, secured loans are approved with the use of assets and allow for more substantial sums to be paid during a longer time frame, plus compared to unsecured personal loans, the monthly payments are comparably lower. The massive drawback of this type of loan is the seizure of the asset used to secure the investment if you are not able to make the monthly repayments. This would be truly unfortunate.
Annual Percentage Rate
An essential pointer to remember when considering car finance is the Annual Percentage Rate (APR). This figure is significant since this is the only rate that will show the difference between credit deals. The APR usually includes two amounts of cost, the actual price of the car or flat rate and the after-sales fees that get added after the purchase is complete. Ask your salesperson about the APR of their finance. By comparing the different prices of the vehicles you’re interested in, you’ll be able to tell the best deal from the worst.
The loans and finance options described here are all beneficial, but only if they fit your needs and means. It’s a big plus if you have a clear credit history since this will significantly help with your choice of finance. Whether you’re choosing an independent car finance specialist such as Car Finance Giant, dealership car financing, or car financing with a loan, be sure to check the options available to you.
The dream or necessity of having a car doesn’t need to fade away into oblivion. If you get a car and car finance within your budget and make sure you plan your repayments, you’ll be driving away into the sunset in no time. Just remember to drive back in time for the next repayment!