A personal loan for your new car
Monday September 29, 2008
If you're found a car you fancy, but don't have enough money saved to buy it outright, then chances are that a personal loan will be able to help you out. While the car dealer will probably offer you finance, it's rarely in your best interest to go with what they're offering you. You could end up paying thousands more than you need to. Instead, take a look at which bank can offer you the best personal loan.
Many banks offer personal loans that are designed specifically for purchasing a car. These car loans are usually secured personal loans. A secured personal loan means that the car will be held as security. A secured personal loan will usually have a lower interest rate and lower fees. If you decide to go with a secured personal loan, you will probably be able to borrow a larger amount, as well as lower fees and lower interest rates.
Unsecured personal loans are usually available, but these will usually have higher interest rates and higher fees. You can often get fast approval for an unsecured personal loan, if you are willing to accept the higher costs.
Some banks may only offer car loans if the car is fairly new. Interest rates can also depend on the age of the car. When investigating what sort of personal loan you'd like, consider if you'd like a fixed interest rate or a variable interest rate. You may also be required to take out comprehensive insurance if you decide on a secured personal loan.
Establish all the terms and conditions of the car loan before you sign the dotted line. Some questions you might like answers for are:
- What fees apply?
- How long will it take to repay the personal loan?
- If I can pay the personal loan out early, will there be a fee?
If you'd like to be in a better bargaining position try to get your finance sorted out first. This is very useful if you are looking a private seller.
Compare personal loans and find the right car loan for you today.
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