Spg Suzuki Baleno Checking Out Car Finance. Trying to purchase a car from your own bank balance might prove to be something of a strain unless you happen to be extremely wealthy. That's why car finance exists.
Requirements
If you're purchasing a car, you may wish to ask yourself what you really need from a car loan. The answer to that question will depend very much upon you as an individual but perhaps one or more of the following may come to mind:
* cost (interest rates) - few of us like paying more than is necessary;
- speed of response - once you've applied, you probably want to hear quickly what's happening and how much you may be able to borrow;
- independence - a car loan that restricts you to a given dealership, manufacturer or model, may severely cramp your style and reduce the amount of shopping around you can do for that car (which in turn, may reduce your negotiating strength when trying to drive a hard bargain);
- deposit - lenders that demand a hefty deposit may push your finances beyond breaking point so those that don't may be even more attractive.
If so, what can the car finance marketplace offer?
Loan providers, You may be facing a range of options including:
- banks - potentially a useful source but they may struggle to meet several of the above criteria such as speed of response, deposit demands and possibly they may have restrictions on loans depending upon the age of the vehicle you're looking for,
- car dealers and manufacturers - their loans may limit your degree of choice because they may only apply to a given dealer or perhaps the manufacturer, and that may significantly reduce your negotiating clout when trying to drive down the dealer's asking price;
- specialist car loan companies - their loans typically don't require a deposit and they mean you can go to any dealer you choose
- credit cards - they may prove to be a relatively expensive way of obtaining car purchase funding and you may also find that a typical credit limit may not be sufficient to purchase a vehicle.In the end, you will choose the car finance that's most suitable to your needs and thinking carefully about the above may prove useful in making that selection.
