Cars are not cheap but for the most, we all rely on a car to get us to and from work. The reasons for changing your car are broad, an additional family member or your car has simply run out of steam.
Car Loan Considerations
Before applying for a car loan, it is important to have a think about the factors a loan would have on your circumstances. With a car loan, you borrow a fixed sum of money, then commit to repay the amount over fixed monthly payments, usually over a period of one to five years. The interest rates can also vary depending on how much you're borrowing
- Monthly payments, are they affordable for the amount you are applying for.
- Interest rates and charges associated with taking out a car loan
- Whether the lender would require a deposit
- The longer the term, the more interest you will pay
A car loan is generally an unsecured personal loan with a fixed rate of interest for the length of the repayment term. This offers stability in your repayments. Knowing that your monthly instalment is set at a fixed amount will also allow you to budget better.
Is an unsecured car loan right for me?
Car loans are simple to understand and the cost of a loan can generally be spread over a maximum of 5 years. Once the loan amount has been transferred to the car dealer you will own your vehicle. Unsecured personal loans for cars can be more expensive than a secured loan. The rate you are offered will generally be dependant on your credit score. The best rates will generally only be available to those with a squeaky clean history