Car dealerships offer a lot of deals on car loans, but it is always worth thinking about what you need, because with current interest rates you can get much more favorable personal loans.
Once everyone buys the first car of their life, or if they already have one, they replace the old one. Unfortunately, not everyone will be able to pay the purchase price of the car in one lump sum, so most of the time you need a loan. But what kind?
From a car loan or a personal loan?
The first step must be to survey the market! There are plenty of credit products, all with different rates and costs, so it’s important to compare all the options available! You can find car loans at virtually every bank, and even if you buy at a dealership, you can arrange different car loan options locally. It is important to know that car loans the purchased vehicle will always be covered (ie it will be encumbered), ie the purchased vehicle will be covered as collateral. The benefit of this is that you will have a slightly smaller down payment, lower credit rates and most of the time you will not have to pay for yourself. The disadvantage is that if you accidentally become insolvent, you can say goodbye to the car, and if you change your car frequently, you cannot do so with a car loan, as the car is actually owned by the bank and not registered with them. you can sell it.
With a personal loan
The reverse is true: there may be a bit more in installments and fees, a higher loan amount will require your own funds, but your car is 100% yours because it does not count as collateral, so you can transfer it at any time. you can spend not only on the purchase, but also on the service and refurbishment!
So, whether you choose a car loan or a personal loan
It always depends on what your current options are and how you decide. Both have their advantages and disadvantages, you just have to weigh! And if you choose a personal loan , you can compare the best deals on our site and choose the one that suits you best!