Striking the perfect deal to finance new car
United States, 29th August: Are you looking to buy a new car and want to get the best bargain in financing your car? Read this article to find what to do—
Car finance has become quite common these days with nearly 80 percent of the cars being purchased through car finance. So, if you are one of these 80 percent potential buyers looking to finance your new four wheeling beauty, then you consider the following—-
For those wishing to finance a car, four choices are available for them. These include :—–
- Personal loan (from any bank);
- Car leasing ;
- Social lending;
- Financing from a dealer
1. Personal loan — Although, the rates may vary, but personal loans or personal finance is a highly preferred choice for those looking for car finance these days since it is available at highly competitive rates. Some banks offer loans or finance to their existing clients or customers while others ask for early redemption fee from the customers. Meanwhile, prospective car buyers need to consider their previous banking track record since it will get considered while providing personal car finance. So, you need to have a good credit rating in order to get competitive rates.
2. Car leasing — Car leasing is also getting common because of the fact that cost of car depreciates over a period of time. car leasing is a car finance in which there is a long-term agreement for renting the car. So, you need to pay the monthly price for using the car. The monthly price under this method of car finance depends upon the car selected by you. However, the main drawback is that you never become the owner of the car.
3. Social lending — Apart from getting finance from the bank, you can also get personal loans from severalsocial lending websites at competitive rates. The rates normally vary from 8.5 percent to around 15 percent depending on the borrower’s grade and the amount to be
borrowed. The best thing of getting personal loans from social lending sites is that you can pay back at any time without getting penalized.
4. Financing from a dealer — Getting personal loans or personal finance from dealers is another option for those looking for car finance. It is advisable to conduct a thorough research in the market before heading for any particular finance dealer. Look for the APR(Annualized percentage rate)-i.e. the total sum you need to pay every year including set-up fee(if any).