Although most people would prefer to pay for a car with cash whenever possible, it may be a better idea to finance your purchase instead. So what are the advantages of used car finance?
This is the biggest reason why you might look for a loan. You want to be liquid enough to handle any financial emergency that comes your way and that means having money in the bank.
Instead of putting $10,000 toward the purchase of a car, it may be a better idea to put $1,000 down and keep the rest in the bank for when you need it. If you lose your job or get sick, you will still have money to pay your bills until you get back on your feet. And there could be tax benefits to having a car loan too so ask around.
The good news is there are lenders who will be willing to finance your next used car purchase. And borrowing for a car loan, whether it is a personal loan or a lease or hire purchase, might help improve your financial image in the eyes of the credit industry.
For those who are looking to rebuild their credit history, this is the perfect way to do it. If you make your payments on time, you will have built a positive credit history over the course of 60 to 84 months. Lenders will see that and know that you are responsible with your finances once again.
Use our simple car loan repayment calculator to see whether you may be able to afford a loan for auto purposes.
There is a good chance that you will not sell the car for nearly as much as you bought it for. If you pay for the car in full, you may take a steeper loss than if you only pay for the car while you use it.
Make sure that you have some equity in your vehicle before you sell it to ensure that you have some flexibility when it comes to your asking price. And keep an eye on financing for cars because as your credit history improves it may be that car financing interest rates come down for your auto loan.
Make sure you get professional financial advice to find out what is best for your unique personal circumstances. Once you are ready to make a decision, our friendly loans.com.au customer care team can help you to make the right choice in used car finance.
Tags: car loan answers