Buying a car is a significant investment. However, this does not mean you have to wait forever until you have saved enough money to own a car. In fact, there are plenty of ways you can seek financial support to get secure a new vehicle. Listed below are eight ways you can finance a car:
Short-term bank loans
Many banks provide car loans to their customers. In some cases, it happens in less than one week, but you’ll need a good credit history and your monthly income must exceed the required loan amount. Banks do not require down payments, and sometimes, they offer interest rates that are lower than other financing options.
Dealerships offer to finance for cars and in most cases, the dealership will try to finance as much of the car’s price as possible. The interest rates are usually high, and you may be required to put down a sizable down payment. However, dealerships may offer more flexible repayment terms than banks.
There are many online lenders who offer car loans. The application process is simple and can be done in minutes and you usually get a response within 24 hours. Interest rates are generally higher than those offered by banks and dealerships, but the loan terms are more flexible. An example of an online lender is Rapid Loans, an Australia-based company that has been providing car loans, personal loans, and business loans for over fifteen years.
Credit card cash advances
You can take advantage of your credit card to get quick cash for a car. While some people claim that the interest rates on these advances are high, others claim they are lower than those offered by dealerships and banks. However, you should only use this option if you know you will be able to pay off the loan in full each month; otherwise, you will end up spending much more than the car is worth.
Friends and family
If you trust someone enough to borrow money from them, it is an option that may work for you. I. However, if this is a loan that you will not be able to repay, it can lead to issues with your friendship or family relationship.
Peer-to-peer lending sites make it possible for people with money but no time to apply for loans from banks and other lending institutions to lend their money directly without going through a traditional bank. The interest rates are usually much lower than those offered by dealerships and banks, and there are no prepayment penalties.
A part-time job is another way to finance a car. This option may be the most advantageous because it will help you take care of your financial obligations like funding your dream car. However, you should ensure the part-time job doesn’t interfere with your primary job.
Use your savings
Of course, the easiest way to finance a car is by using your savings. The benefit of this option is that you will not have to pay any interest rates, but it also means that you will not own a car until you can afford to buy it in cash. Even if this method does require patience, waiting could save you money in the long run.
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals