Loans Information |
What is a Car Loan?
A car loan is a type of credit offered by a bank or other financial lender for the specific purpose of buying a vehicle. Car loans allow you to finance buying a new or used car. There are a range of car loans available from banks, building societies or financial institutions; you can also take out a car loan with a specific car loan lender. Car loans are the most popular type of loan that people apply for. Car loans, as the name suggests, are unsecured loans specifically designed for the purchase of a car. Car loans can be seen as a riskiest of loans from the lender's point of view. This is because unlike a secured loan that may be used for home improvements that can add value to your home; a car loan is for an asset that depreciates very quickly. Thus you will find that car loans have generally a higher rate of interest than any other type of loan. A car loan does not require any collateral to apply. Almost all loan providers will allow you to apply for a car loan, with a few specializing in this area. The main reason people may apply to a specialist car loan provider (such as car dealers) may because their credit rating is not good. Please be warned that you will pay a higher interest rate from these specialist firms. You enter into an agreement with your lender to borrow a specified amount, usually up to a maximum of £25,000 depending on your circumstances. You then pay back the loan over a set period of time. The payments you make consist of both the principal amount of the loan plus interest. With this type of loan you own the car from the time you buy it. Car loans are form of personal loan of which there are several basic types with slightly different conditions attached. There are three different types of car loan: Manufacturers' schemes You see these types of loans advertised by the car manufacturer and these can be arranged either directly with them or via a local car dealership. Part exchanges on your current vehicle are normally accepted, and the remaining balance is paid through a loan. As with a hire purchase scheme, you will not be the owner of the vehicle until you have repaid the loan in full. If you default on repayments, the car will be repossessed. Hire purchase (HP) This sort of car loan is arranged by car dealerships, and in effect it means that you are hiring the car from the dealer until the final payment on the loan has been paid. When the loan has been fully repaid, full ownership of the vehicle is transferred to you. Personal Loan You have the option of either taking out a general personal loan, or a personal loan designed specifically for car purchase. The two are almost identical, but because a car loan is taken out specifically to buy a car, the lender may offer you car-related incentives such as emergency breakdown cover, free motor insurance or special discounts on car accessories. Personal loans normally have lower interest rates than manufacturer schemes or hire purchase loans. You may freely reprint this article provided the author's biography remains intact: About The Author
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
See What Your Home is Worth If you thought your home is worth nothing except for living purposes, then think again. It might be holding a treasure, still waiting to be explored. Why Choose a Secured Personal Loan? Listed below are some of the many reasons why you should choose a secured personal loan. A secured personal loan is often referred to as a homeowner loan. Benefits of a Home Owner Loan There are many benefits for choosing a Home Owner Loan, some of which are listed below:If you are a homeowner, you have a better chance of borrowing a homeowner loan and securing the amount against your home .A secured loan is so called because you put up your home as collateral or security for the lender. Short Term Solutions to Cash Flow Problems If you're in a crunch for money, either because of an unexpected emergency bill or other reasons, you may want to look into check into cash services. Available online, check into cash services follow a three tiered process:First, you send them a check. Personal Loans and Lines of Credit Personal LoansNormally, a personal loan is unsecured meaning there is no collateral. When you obtain a personal loan, you borrow an amount of money for a set period of time and pay interest on the outstanding principal balance. Guide to Secured Personal Loans Here is a useful guide to secured personal loans. A secured personal loan is the generic term for a loan. The Ins and Outs of Loans for Military Under the microscope loans for military really are different from civilian loans. Some things are the same such as your application must be approved, you still pay the loan back in an allotted amount of time, and you still have a set interest rate. Thinking Of Co-Signing For A Loan? Read This First It is quite common for someone, who is having trouble getting credit, to approach a friend or relative to act as a guarantor or co-signatory for a loan. They've seen that new car they would dearly love, but have one problem. Long Term Unsecured Loan? In order to understand qualifications for loan approval, let's examine the typesof loans; secured and unsecured, and the two types ofre-payment plans: short term and long term.Secured loans have both short and long term repayment plans. Quick Cash Loans Online - A Fast Way to Get an Emergency Cash Advance If you need a fast way to get an emergency cash advance, then apply for a quick cash loan online. Payday loan companies now offer instant approval with their paperless process. Debt Consolidation Tips Here are some useful Debt Consolidation tips. Debt consolidation is a loan used to repay several other loans. Taking the Time to Find the Best UK Loans When looking for UK loans, it's always important to take your time so that you can compare loan rates and terms from a variety of lenders.Depending upon the type of UK loans that you're looking at, different lenders may offer different rates depending upon your credit history, your income, and even the type of collateral that you're using to secure the loan if you're applying for a secured loan. Is a Microloan Right for You? If you've been tossing around an idea for a small business, but wondering where you'll find the money you need to get started, perhaps you should consider a microloan. Microloans are ideal for getting a new business off the ground. Benefits of a Business Loan There are many benefits in choosing a business loan, some of which are listed below:What's the fastest way of raising money for your business idea? A business loan, but what kind of loan should you get and who should you get your loan from. You could ask family and friends for a loan but they might not be as convinced about your winning idea as you are. When is a Commercial Lender not a Commercial Lender? A Commercial Lender is Not a Commercial Lender When it is a BankA commercial lender offers loans backed by hard collateral, usually real estate. Usually a commercial lender's lending criteria will be less stringent than at the local bank. No Fax Payday Loans Online for a Fast Cash Advance Loan For a fast cash advance loan, no fax payday loans are now available online. By completing your application online, you don't have to fax paycheck stubs or forms. A Guide to Finding Cheap Loans Finding cheap loans isn't always easy? it seems like every time you turn around new rates and fees are added and the loan process becomes increasingly frustrating with each new change that's made.Cheap loans don't have to be such a hassle, however? there are a variety of loan options available for people of all credit levels that allow you to get the money that you need without paying extremely bloated fees and interest rates. How to Find a Loan or Mortgage with Bad Credit If you have bad credit and you are trying to get a personal loan or mortgage, it may seem like a difficult situation. However, there is hope. The Wonders of Compound Interest Albert Einstein called compound interest "the greatest invention of all time." It has even been referred to as the "Eighth Wonder of the World. UK Loans Guide - Channelising Your Rising Budget in a Productive Mmanner Every unknown road needs a milestone to configure where it leads. Every loan type in UK requires a guide to steer through the loans market. |
home | site map | contact us |