Purchasing a car may be your ultimate desire but it is not easy for every individual to afford a car. Secured car loans have been designed to assist those borrowers who do not have sufficient funds to purchase their own car.
Secured car loans primarily aim at providing funds to the individuals who aim at purchasing new car. To apply for secured car loans, the borrower has to pledge collateral against the loan amount. The borrower can also pledge the new car itself as security. Thus this loan can be attained by both the homeowners as well as the tenants.
A secured car loan provides its borrowers an opportunity to avail a loan amount ranging from £3,000 – £100,000 for a period of 5 to 10 years. This amount may vary from car to car. Secured car loans help you to attain an amount equivalent to 90% to 100% of the value of the car. A borrower is required to make a down payment while purchasing a car. This amount varies with the negotiations between the lender and the borrower. There are some lenders that offer a substantial down payment in exchange for low monthly payments and finance charges.
If funds are not a problem for you, then you can opt for a new car loan. New car loans prove to be an ideal option for those whose preferences are budget, luxury, needs and convenience.
Whereas, used car financing is the perfect for those who are unable to purchase a new car in full. It is a much cheaper option as it allows you to own a car for an amount that suits your pocket. For used car financing a borrower must make sure that the car he desires to purchase should not be more than 5 years old. These loans are offered to the borrower on the basis of the loan amount, monthly income, credit score and repayment capacity.
A secured car loan is a combo of various benefits. It allows you to attain a lower interest rate, small down payment, favorable repayment period, flexible terms, huge amounts and easy monthly installments.
Summary
A secured car loan offers you the necessary finance to purchase a car by using your home or the car purchased as collateral. The loan amount attained can be used for various purposes. They make the process of owing a car much simpler and convenient.