If you want or need a new car, but you don’t have the capital upfront you can consider taking out a loan for the purchase of your vehicle. I’ve taken to many people who have always paid upfront or have kept their car until it falls apart because they either didn’t want to have to pay for something that would depreciate so fast or they thought they didn’t qualify to get a loan. There’s a good chance that paying the monthly rate might be cheaper than continually fixing up the old heap.
There are so many different financial companies that specialize in issuing loans specifically for the purchase of automobiles. Even more conveniently, they’re all pretty well setup online for easy access. This is a blessing in disguise, and fleeting are the days when you had to go to the nearest bank and get denied or take on a massive payment due to the lack of options. With online loans, you have the opportunity to shop around and be much more confident that you’re not getting “taken to the cleaners” on the first stop.
Often, this type of loan for the purchase of a car is known as an “unsecured car loan”, and you can search for specialist companies online that provide them. A good car loan company should be able to give you an instant free quote, and many of these companies will provide between 90% to 100% of the purchase value of the car.
Typically the car loan is repaid over three to eight years – five being the most popular. What’s particularly interesting is that even people with poor credit, bankruptcy, or CCJ (County Court Judgment) are eligible to take out an unsecured car loan. Now going into debt is never a good thing but if you need a car and have to go the loan route then always work within your means.
Understanding what your credit situation before starting your quest for a new car loan, is critical. You should seriously get your credit check done to ensure you know going in what issues you have if any. As stated earlier, an Equifax Credit Report will cost about $15 but is well worth it. You can also try FreeCreditReport.com, but either way, it’s a small price to pay to ensure you know where you stand, especially if you’re planning on going car and loan shopping in person.
As always, it’s good to visit as many car loan online websites as you can – many online websites will offer you a free quote for your car loan, and it’s a good idea to get as many of these as you can before making a final choice. Try to get at least three and even four quotes to compare and ensure you’re getting the best deal out there. Getting quotes usually only takes a few minutes to fill out a form but doesn’t cost a dime, so take advantage of them. The worst thing when buying anything on impulse sees it cheaper right after you’ve paid.