A car or any automobile for that matter, that once was classified as a luxury is a sure necessity today. A car has today become the next asset that bears substantial value, after your home of course. This is why the need for owning your very own car is on the rise today – be it a brand new car or even a hand-me-down.
When it comes to getting a loan approved, your home stands as collateral in most cases since it can get you a better deal because of it’s high value. But, there’s always the risk of you losing your home in case of any defaults on your part, while making your repayments. This is why, individuals like you and me have started pledging our automobiles, instead. Cars are thus gaining significance even when it comes to taking a loan. Purchasing a car, however, may not be as easy as realising it’s need. But for those of you who’ve got the ‘drive’, I’ve got the perfect solution to funding the car you’ve always wanted – Personal Car Loans.
‘Personal Car Loans,’ the name itself is self-explanatory. Personal Car Loans are taken to fund the car you’ve always wanted. Although buying a car may become a necessity, many of us cannot put aside enough money to buy the car in one go. I perfectly understand this scenario, since I recently started out to buy my very own car. The intention to save a little every month was a thought – but one that never materialised. This is the ideal situation in most homes today. With the growing expenses and regular dues taking top priority, saving for a car can sometimes become difficult; especially since the income is the same while the desire to own more has suddenly increased. This is why Personal Car Loans make so much sense; so much so, that Personal Car Loans are taken by the affluent too.
Personal Car Loans are taken solely to fund the purchase of a car. They can either be secured or unsecured. Personal Car Loans that are secured, customarily require borrowers like you and me to put up collateral (pledge any asset) against the loan amount. Your collateral must have value comparable to the loan amount. Assets commonly pledged are homes, jewellery, automobiles, etc. Collateral pledged, remains in the lender’s possession until you repay the entire loan within the stipulated loan term. In the event that you fail to repay, make late or incomplete payments, there is a chance that your collateral will be seized. However, the presence of collateral gets you several benefits like lower rates of interest, longer repayment terms, larger loan amounts and less stringent credit requirements.
Personal Car Loans that are unsecured are completely different. Although they are taken for the same purpose, these loans usually cater to non homeowners, tenants, etc. who have no collateral to offer. Here, collateral is not a requirement. Your loan is approved on your current financial standing and your apparent repaying capacity. In the absence of collateral however, there’s a downside – higher interest rates, smaller repayment terms, smaller loan amounts and essentially excellent credit histories.
With Personal Car Loans, there is no standard package or limits. The loan amount depends on the purchase price of the car you want and the amount you can contribute towards it’s initial payment. The interest rate also varies depending on the total price that needs to be paid. A typical loan term varies from 5 to 25 years if secured and up to 10 years if your Personal Car Loan is unsecured. Choosing the right lender will get you the best deals. It is therefore very essential that you do your basic groundwork – going through car catalogues, visiting car dealers and showrooms, educating yourself on the interest rates and other loan terms doing the rounds in the market, etc. Looking for cars and Personal Car Loans online is a better option since your search is bound to cover a wider segment of dealers and lenders, in a shorter period of time.
With Personal Car Loans, there’s nothing right or wrong about it. The difference lies in the amount you will be paying finally. Being certain about the car you want, being aware of the prices and discounts, preparing the required documents and putting a larger towards the down payment, can not only speed up the process of your Personal Car Loan, but can also make your repayments a whole lot easier!