Cars are a favorite vehicle with many people. They are bought in thousands every year. New make and models are introduced by the vying makers and, of course, the latest are always the most sought after. However, cars are not something that can be bought on an average man’s budget as they are pretty expensive. They require careful financial planning and many take loans to help them cover the expenses involved. Of the various kinds of car loans that are available, a secured car loan is one of the more popular one due to its many benefit.
Secured car loans are affordable loans. Here, the car that you are considering buying can be pledged as collateral. The car can be a luxury car, a family car or an economical car; it can be a brand new one or a used one; a secured car loan will equip you with the required amount. In case of used cars, do take note that it should not be more than 5 years old.
The loan amount provided by a secured car loan is dependent upon the cost of your car. So, find out the total costs involved in the purchase before applying for the loan. Usually an amount up to 90% of the cost is granted as a secured car loan where you have to account for the rest as down payment. However, there are also cases where lenders do provide funds for the entire cost. But one thing that remains fixed about such loans- the repayment period lasts up to 7 years and not beyond.
Secured car loans generally have comparatively low rates of interest. Still, it is possible to find cheaper deals. If your financial status, credit score and repayment capability are good, then you may easily get a low cost deal. You can also compare quotes of various lenders and check out where better offers are available.
Now that you have learnt about such a great way to finance your car purchase, you can finally cruise around town in that much attractive machine.
Secured car loans can be obtained by providing the car itself as collateral. They have low interest rates and are thus a low-cost method of financing car purchase. Any type of car, whether old or new, can be bought through these loans.