Car Finance

It has been often observed that people lack the cash while buying their dream cars and have to resort to car finance or an auto loan. In this article, we will try to analyze the different types of options available while availing car finance. Your personal finance for the coming years is going to be affected by the type of car finance option you choose. Your leasing or buying a car with cash not only involves money but there is a time factor associated with it as well.

The choice of car finance option also depends on the priority you attach with the vehicle. For instance, if you want the best or the latest model available in the market then you are going to spend a lot of money on acquiring the same. On the other hand, if you are buying a vehicle for some practical purpose then you might not always prefer the latest models. The 3 primary questions that you will have to answer before you meet a salesperson are:

1. Do you want to buy the car for cash?
2. Do you want to lease the car?
3. Do you want to avail car finance?

If you want to buy the car for cash then there is minimum hassle attached to the process. You will have to negotiate the price with the dealer and make the full payment at the time of purchase. There are many dealers who would try to persuade you into buying a car for cash as this is the most profitable option for them too. You need to tread carefully and negotiate hard for discounts.

Well, leasing is probably the most attractive car finance option available to buyers. The dealers will provide attractive discounts and at the same time you will have to make low down payments. The monthly installments too are very low when you are leasing a car. You are not required to pay up a huge sum while buying the car. The cars will have a 3 year warranty which would even cover mechanical failures. The leasing option available with different dealers varies, so it is imperative that you check all the details before signing on the dotted lines.

Now if you want to avail a loan for buying a car then you will definitely be asked to fill in a credit application. Here your credit scores will be taken into consideration and the loan would be arranged with the help of the dealer. The time period for these loans varies between 36 to 60 months and you are also required to make a down payment. The amount of installments that you pay depends on the amount of loan you apply for, the time period of the loan and the interest rates. The lending company will remain the owner of the car till the time you complete the entire payment. The ownership papers will be handed over to you once you make all the payments to the lending company.

Choose any of the above car finance options that suits your budget and financing needs.