5 Options For Car Financing
If you’re like most people, paying cash to buy a new car just isn’t in the realm of possibility. And even if it’s in the realm, you may not want to deplete your savings account to buy a new vehicle.
This means that you’re either going to be leasing the car, or buying the car by financing it. If you’re buying, then you’re probably financing it through the dealership, a bank , an online financial institute, or maybe even a family member.
If you know you want to finance your car rather than pay cash, then you need to do your homework and decide how to get the best car financing deal.
1. Automobile Manufacturer’s Finance Company
If you purchase a brand new automobile car from a dealer, in some cases you will often be able to obtain car financing directly from the company that manufactured the car. This is the simplest and fastest way to finance a car, but be warned that this can be more expensive than other options. Interest rates charged by the major automobile finance companies are usually higher than those available from more traditional lenders.
2. Bank Loan
Your Bank will generally offer you a much lower interest rate than another lender. If you have a customer relationship with a bank, then this may be the best option for you. Because you are an existing customer, the process is often a simple and quick one.
3. Finance Companies
Finance companies are generally not the first choice option for automobile loans. They usually charge significantly higher rates of interest than other lenders. They are also typically more aggressive about pursuing collection of the loan, including repossession of the car, if the borrower is slow in making payments.
4. Second Chance Car Dealers
A second chance car dealer will work to obtain car financing for a consumer who poses even the highest credit risk. Generally, second chance car dealers will require that you have proof of regular income at the very least. They may also require that you provide a large number of personal references. These dealerships are extremely familiar with the area’s lenders and use a variety of methods to obtain financing for high risk customers.
5. Personal Loan
Another option for car financing is to borrow the money from a friend or family member. The advantage to this financing option is that you may be able to obtain a loan at a very low rate of interest, much lower than you would be able to obtain through a conventional lender. A major disadvantage is that you risk damage to the relationship if at some point you become unable to make payments on the loan.
Leading Car Loan Providers
- HDFC Bank Car Loan
- Bank of India Car Loan
- Axis Bank Car Loan
- Punjab and Sind Bank Car Loan
- Andhra Bank Car Loan
- Dena Bank Car Loan
- Punjab National Bank Car Loan
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