Auto Lending: Afford the Car of your Dreams

2007-03-08 10:33:40

( Financial )



TYPES OF CAR LOANS

Auto lending may be taken out for a variety of purposes. The primary reason why you will avail of auto lending is to buy a vehicle, whether this is your first time to buy a car, or will be getting another one.

You have two ways to get an auto lending – direct or indirect. In direct automobile loans, you personally approach a bank or other lending institutions, and apply for an auto lending plan yourself. Indirect automobile loans, on the other hand, make use of a go-between. Usually in indirect auto lending, the car company will be the one to apply for the loan in your behalf in a process also known as in-house or dealer financing.

Usually, it is better to apply for direct auto lending because the charges are lower. While in-house financing involves fewer requirements, this is in exchange for higher interest rates. However, if you urgently need a car and your situation will not meet the direct lender’s requirements, then indirect automobile loans are the way to go.

FOR NEW AND OLD CARS

Auto lending can be used not just for the purchase of a car. It can also be for those with existing car loans. You can apply for an auto refinance if the interest charges on your outstanding loan is high and you want to restructure to get lower interest payments.

If you are planning to get a classic or collectible car, you cannot avail of an auto lending. There are specifications as to the type of cars that can be financed through loans. As a general rule, the vehicle must be no more than six years old, give or take a year or so, to be eligible for a car loan.

When purchasing a new car, it is best to shop around first. If you have already decided on the type of car you want, then shop around for the dealer that can give you the best deal.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.