Features types of car loan: Trade-in, Express loan, a car loan with no down payment, no insurance, factoring
Before you start the search for a dealership where you can buy a car on credit, you should become familiar with the types of loans to select the best option. There are two main types of car loans – consumer loans and Express loans, but there are additional types of loans, which often offer more favorable terms – a loan without insurance, no down payment, trade-in and other types.
Trade-in – credit type, where an initial contribution is Your old car. Thus, You get rid of the problems with selling a used car, get new and get a substantial discount. But there is a downside – Your used car the company will redeem at a lower cost, so if you can sell a car more expensive, you should refuse this offer.
Express loans allow you to get a new car much faster, but in this case the initial payment will be not less than thirty percent, as the entire loan period will not exceed three years, which is significantly lower than other proposals.
A car loan without a down payment allows you get rid of a lot of papers and purchase the car without a penny in his pocket. Such options are issued quickly, but the client is a monstrous overpayment. The Commission in this case much too high, due to the risks of the Bank. Also and insurance such a loan more. So think, should I take out a quick loan, but with large overpayments.
Factoring is almost the installment on the car, but with the additional commissions in the amount not much different from the usual loan. But there is a possibility quickly to pay off loan. But this option does not allow you to borrow a domestic car.
Car loan without insurance – the budget option. You will be offered the lowest rates, because insurance takes a very important part of the overpayment on the loan, but the loan amount is not large – a maximum of four hundred thousand, and often much less. Therefore this type is suitable for domestic and used cars.
Choosing the best car loan, you should pay attention to a lot of questions – what is the cost of the machine is right for You, how quickly You want to pay, do You have funds for down payment and whether You need a car now and not next month? By answering these questions, You will easily be able to choose the right type of loan for You and Your new car.