8 Reasons to Purchase a Car With A Loan Today

8 Reasons to Purchase a Car With A Loan Today

by Manish Singh

Having access to your own vehicle is a necessity when it comes to moving from one place to another and ticking items off your never-ending list of errands.

If you’re in the market for purchasing a new or used car, cash should not be a limitation. An online car loan specialist will help you turn the car you’re thinking about into the car you’re driving, whether it’s at a dealer or parked on the street with a sticker on the window.

Here are just some of the reasons you may purchase a car using a loan.

1. Fixed Rates

When using a loan to pay for a vehicle, most lenders offer fixed rate loans. This simply means you pay the agreed interest rate for the duration of the loan term, protecting you from rate fluctuations. As the new owner of the vehicle, you get to enjoy the car as you slowly pay for it!

2. Choosing New Or Used

The world of cars continues to significantly evolve with new models, designs and technology being released every day. While buying a new car outright with restricted capital might not be an option for you, opting to purchase a second-hand car or using a loan for either will allow you to get the best make and model to suit your lifestyle. Why settle for less, when you can have the best?

3. Build Your Credit Score

If you choose to purchase a car using a loan and successfully make the required payments on time, you may have the opportunity to manage your credit and boost your credit score. Having a good credit score also increases your chances of getting your loan request approved in the first place.

Despite this, it’s important to remember that there are no quick fixes for bad credit scores or negative information on your credit report.

4. Purchase Freedom

In the past, buying a car using a loan posed some restrictions as you had to purchase the vehicle from specific dealers who may not have the kind of make or model you want.

Nowadays that is not the case, with multiple car loan lenders having partnerships with various dealers, providing you with a wide variety of makes, models and prices to choose from.

5. Cooling Off Period

When getting approval for a car loan, most lenders will give you a cooling period. This is where you get time to think and decide if you want to take the loan and if it’s the right decision for your financial situation. In most instances, this cooling-off period is about 14 days.

However, when you choose to cancel the request, you may still need to pay the interest accumulated during that cool off period.

6. Secured VS Unsecured Requirements

When it comes to a secured car loan, manageable requirements are mostly dependent on the collateral asset rather than your income, although the car in question is not the primary collateral.

This may mean if you’re not working full time, there might not be a problem! Some lenders will welcome you even if you’re employed casually, self-employed or receiving government benefits. This is because secured loans are safer for both the lender and the borrower with unsecured vehicle loans being quite uncommon.

7. Ease of Application

Vehicle finance with an online lender may have a simpler application process than with a bank. Although the car loan assessment will be just as thorough, online lenders may be more open to taking your circumstances into account and provide efficient and personalised service.

8. Less Stressful

The car loan market is a competitive one and the number of options available can quickly become overwhelming. A loans consultant will arm you with the information, confidence and understanding necessary to make the right decision for you and your needs.

A secured car loan will help you get from A to B with a new set of wheels which you can simply pay for later. This gives you the freedom and opportunity to choose the safest and most suitable make and model that will suit your lifestyle.

About the Author:

Raymond James is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.

Related Posts