When, Why and How You Should Get Car Finance
- Car Finance,
- Sep 09, 2019
Transportation has become a basic necessity of our lives which can not be disregarded completely from any field of life. Wherever you look, you will find some sort of vehicle used for something. Be it out in the vast fields, where tractors and trucks are used for farming, or in the urban areas where they are used for basic means of travel, deliveries, transportation of goods, or just for flexing the shiny new cars. The point here to be noted is, vehicles are important, and everyone needs one in their lives at one point.
We are here to help you with acquiring your very own car despite the challenges you might think you are facing because getting a car is quite easy through car finance. You can obviously skip if you do not want a car but since you’re reading this article, we will assume that you want it. There are a lot of questions that one needs to ask himself before acquiring a car or car finance for that matter, and we will help you answer the most important ones of them all. So, let’s get right into it!
What is Car Finance?
The most important question of all before you consider applying for car finance is, “what actually is car finance?” Basically, car finance refers to the financial packages offered by brokers, lenders, or other people of this sort solely for the purpose of acquiring a car. There are some restrictions on their motives which depends on the type of finance you are willing to get for your car. These types are numerous and we have briefly explained them and car finance for you in this article here. Car Finance rates also vary with their types, so if you really should check that article if you want to have a good understanding of car financing. Low or bad credit finance is easily available if you opt for secured car loans.
When should you get a Car Finance?
Another important question is whether or not you should get car finance in the first hand. There are several conditions that might force you to get a loan in order to buy a car, but you should be careful when making such decisions and never rush.
1- See if you MUST have a car: If there is a specific need in any area of life that cannot be fulfilled without a car, then you should resort to car finance, otherwise, we advise you against it. If there is no need for it, don’t get it.
2- See if a LOAN is necessary: If you have saved up enough money to get a car but at the last moment, your desire changes to something that is way out of your budget range and you think about getting a car loan to cover the expenses, reconsider. You are trying to fulfill a need, not a want. Spending as little money as possible is always a good practice when dealing with finances. Only get a loan if it is absolutely necessary.
3- See if you can AFFORD car finance:
Getting car finance is easy but repaying it is what breaks down even the toughest. There are car finance deals with very low rates of interest, but even that can become problematic after some time. Some of the best car loans out there can easily disturb your bank balance as they continue to grow and add additional charges in them. If you are absolutely certain about the fact that you are able to pay these car finances back, only then you should get them. Otherwise, wait and save up some more money.
You can always perform car finances check through our Car Finance Repayment Calculator.
Why should you get a Car Finance?
Is a personal loan not the same thing as a car loan or car finance, or anything that falls into this ‘loan’ category? Not really, they do not have the same benefits that come with car finances. Car Financing offers you tons of benefits that you can enjoy throughout the duration of your term and they only ever keep on increasing and never disappoint. Some of these benefits are:
1- Easier to Acquire: While you might be denied from a personal loan or by a broker due to some unknown reasons, there are several types of car loans that help you easily acquire them. A secured car loan is, by far, the best in terms of both ease of acquisition and low-interest rate.
2- Better than the most: Car Finances are easier to acquire and better than many of the other types of loans you might be offered. They have a lower interest rate, a larger sum of money that you could get, and even longer terms to pay it all back.
3- Long-Time Benefits: In the long run, car finances can help you by lowering your interest rates, cutting a part of your taxes, and even helping you pay for the damages or other costs a vehicle might be put up with.
While considering these benefits, you should also take a glance at the demerits of car finances over the other types:
1- Strain on Credit: Loans do put a strain on your credit. With the higher amount of money being offered to you, you will end up having to pay more than usual. Keep this in mind when applying for car finance.
2- Partial Ownership: Many of the car finance types do not allow you to own the vehicle fully. If you wish to have complete ownership over the vehicle, then be sure to choose that car loan which does not come with this restriction.
How should you get Car Finance?
This can be done simply by keeping an eye out for two things:
1- Lowest Comparison and Interest Rates: Anything with the low interest and comparison rates are considered as the best when it comes to taking a loan. Look for a package that offers you the lowest of the comparison rates and the tenure is flexible enough for you to easily pay the money back. Learn about comparison rates here.
2- Lowest Risks: The car loan with the lowest risks involved is the best. You should never have to put your house up as security for the failure to pay your car loan back. It is a huge risk and the house is much more valuable than a car. Therefore, when you are taking a loan, do not take huge risks and take the most affordable, convenient, and cheapest one of all.
If you take the above mentioned two points into consideration, the car loan you get will automatically be the best for you since there would be fewer interest rates and risks. But do note that sometimes, taking a risk can prove beneficial for you but only if it is a calculated risk; do not jump or rush into these delicate decisions without any consultation of supervision from someone who is an expert in these matters.
Is getting a Car Finance worth it?
In our opinion, it totally is! But it varies from type to type and person to person. If you choose a type that does not cause any kind of problem for you or for anyone else, then it would be totally worth it. You would get a new car and could easily pay for it on a monthly, quarterly, or annually basis which is much more convenient than paying for a car at once.
Since you may have enough idea about car financing by now, you should also consider looking into the type of car you want to purchase. Whatever you might end up with is the best, but you should look into the car history and run some background checks on it. QuickREVs allows you to perform all these tests really easily with a simple click of a button!