This is the right time to buy a car of your own

Car finance Have you been dreaming of buying a new car for yourself so that you can drive off to work without any trouble in finding a taxi? Well! Then here is your time to do so. The end of the financial year is the best time for you to buy a brand new car as you can get a great bargain in sales. When it comes to financing for a car, then car loans are always a great option. They are available for a reasonable period of time like between one to seven years and generally have very little amounts to pay. Basically the longer is the period of your loan and lesser amount you borrow, the lower are the repayments.  But this is not the case with other loans. For example; in case of credit card loans, when the endorsed currency rate drops (i.e., during financial year ending), banks do not pass-on the profits to customers. While taking a car loan, you must be careful as to which type of loan you are selecting. There are two kinds of car loans you can take. One is secured and the other is unsecured. Secured car loans are best and inexpensive decision to take up. The Mozo database has showed that the rate of secured personal loan rate is presently 8.40% whereas the average rate of unsecured loan is 12.08%. But remember there are a few drawbacks of the secured car loans also:

  • There are possibilities of your car being repossessed if you make any delay in the payment.
  • Usually, car insurance premiums can turn out to be further expensive for cars with unsecured loans.
  • The secured car loans are generally available only for new cars.
You can see many organizations providing various number of car loan options at a very cheap rate of interest for people having the best credit rating. One more problem you might face with these loans is they may ask you to pay the initial processing fee or the application fee. This is done so that they can find out the rate offered to you is not competitive. And moreover application fees are usually non-refundable. Peter Marshall, Product Data Manager at Mozo says that lenders make risk assessment of each and every client’s application before determining the rate of interest that will be offered to that particular client. Most of the of banks and various other lenders also adopt the same pricing strategy and if your record shows any bad debt in your home loan and credit card loans then you might end up paying a high rate of interest. Thus, it is always advised to check if every applicant gets the same rate of interest or if it is varied from one person to another. So be careful of the vendors from whom you take car loan and also make sure to read all the terms and conditions before taking up any type of loan.

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