Secured Car Loan | A Hassle-Free Low-Interest way to Get a Car
- Car Finance,
- Aug 30, 2019
So, have settled on a car of your choice but being a bit low on the credit, you decide to search for car loans and come across the multitude of its types. One thing that caught your eye among them was the secured car loans and you begin to wonder, what kind of loan is “secure?”
To answer that off in a few sentences, secured car loans are the type of auto loans that give you a relatively higher amount of loan for the sole purpose of purchasing your desired vehicle and keeping the vehicle itself as security. It means that if you fail to deliver your end of the bargain, your car would be sold to complete the payment. Sounds risky, right? Well, it’s really not! Although your car is kept as collateral, there come some benefits with it too!
Advantages of secured car loans:
Secured car loans offer you a considerably higher amount of money than what you might be thinking of, provided that your money is going to be used only for the purchase of the car and not for anything else. While banks, lenders, or the shady loan brokers might offer you a handsome amount of, let’s say $60,000, secured car loans allow you the opportunity of getting your hands on a car even better than what you might be dreaming of, by giving you an extended amount of up to a $100,000. This happens because a car is much easier to keep track off and the brokers can easily claim your car in case you fail to abide by the terms of the agreement. Let’s be honest, who would want a Honda Civic when they could be getting an Audi RS 5?
Now there are little to no companies who provide you interest-free car loans, but secured car loans do give you low-interest loans which you can pay over the agreed time in agreed installments. Even if you do have bad credit and want a good car loan, secured car loans really are the way to go since they provide an extended period of time in which you can pay the loans easily without any kind of hassle. That, combined with the low-interest, high amount of loans and the desired car of your choice, is a way better option than resorting towards the other means for the loan.
Since you are being provided with a handsome amount of money, you can decide to opt for a comparatively cheaper car to take full advantage of secured car loans since that way you would not have any kind of financial strain on you and in the relatively extended period of time, you could easily pay the broker or the lender back on the agreed terms.
Why secured car loans and not the other ways?
As mentioned earlier, there are tons of benefits that come with secured car loans which are practically unavailable with the other types. Relatively speaking, the interest rates of other types of loans (like personal car loans, unsecured loans, etc.) are much higher than secured car loans since there is no medium that acts as a guarantee of safety between all the involved parties.
When you have a car that is considered as collateral, it is generally much easier for the brokers or lenders to give you loans which are much better than the other types. The property can be resold after being taken from your possession and be used to fulfill the lent amount with interest in the case that you should fail to pay the company.
If you compare the car loans in Australia, it would be quite visible to you that the best car loans you could find out there are, indeed, the secured car loans. Another reason that puts these car loans at the top of the list is the fact that these car loans are usually guaranteed for approval but there can be some cases where you are unable to be considered for such loans.
However, most of the time, you are eligible and can be given off these loans on nice terms which both you and the party providing you with the loan can benefit from.
How could you get a secured car loan?
Did you think understanding what a secured car loan is easy? Wait till you hear how easy it is to get one! All you have to do is get your documents ready for the basic procedure which is as follows:
1- Know which car you want! It always helps evaluate your dedication, credit score, and eligibility to get a secured loan when you know what you are looking for and how bad you want it. Remembering the make and model is always a plus!
2- Be wary of your credit; your current credit can either make or break your deal with the brokers or lenders. Choose which type of car you want according to your credit and always remember that you have to pay it all back. Never go for something you know you can not afford even after the loan.
3- Always ask the experts. You should never go off trying to get a loan before consulting with the experts on car loans since it may occur that you are getting lead towards a scam. Knowing which company is secure and offers the best secured low-interest car loans never hurts.
When you are done with the above procedure, apply for the loan and wait for your pre-approval. Now, this is not a guarantee that you will be getting your loan, but it helps you evaluate and calculate how much you have to pay back, and other factors contributing towards your secured loan.
You got your secured car loan, what now?
Well, great! You finally got it! Now all you have to do is get your desired car. Whether you decide on buying a Cadillac ATS-V, a BMW M3, or the all-friendly Honda Civic, it is all up to you. You should be careful, though, since the car is not entirely yours and is offered up as a collateral or security to the individual or company you got the loan from until you pay it all back with interest, which is quite convenient as the interest rate is low and the payback time period is better and that is one of the best things about getting a secured car loan.
Now if you do get your loan and you reside in Australia and opt for a luxury car but are super careful about the details and car record. You could get PPSR, VIN, and car history check through QuickRevs if you live in Australia.