So you have decided to buy that long awaited new car, or perhaps for the less luxurious person, a second hand car. The budget is tight but you have done your calculations and know that it would be cheaper to buy the car than to constantly use public transport. Life would be easier and better once your dream car is in your garage.
The next logical step is to get financing. You have researched and weighed the options between taking out a loan and getting auto finance.
The question is – what is auto finance and how can you guarantee that it will not have adverse affects on your personal budget?
Auto finance is traditionally financing that you get from a car dealer. It is often said to be cheaper than getting a bank loan. The interest rates on bank loans can get higher than those obtained from an auto-financing dealer. There are many car dealers who will readily assist you in getting the right kind of financing for your car.
The rates are competitive, as each dealer wants to get as many cars sold as possible. Nowadays even if you have immense amount of debt or have filed for bankruptcy you can still be eligible to obtain auto finance for your car. Auto finance works the same way bank loans do. It is, after-all, a loan that you are taking from the car dealer.
Indeed, purchasing a car cannot get any easier than this.
Technology, however, has also made it possible for individuals to get loans for auto finance using non-conventional methods, such as the Internet. Here you do not need to go to a dealer to get an e-loan. You can normally apply over the Internet and get approved within as little as 15 minutes, some companies claim.
All in all it depends on whether or not you want to pay the instalments every month. Remember to read the fine print; it can save you from making a $10,000 mistake. Buying a car is a big decision, which will have an impact on your personal finances, so you need to be wise. Check out companies until you find one that will best suit your needs, whether it be online or at a local car dealership.
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Written by: Sarah Thomas