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After your home your car is likely to be the most expensive purchase that you will make. Most people consider their car an essential investment, whether they are using it for getting to work or transporting the family. Safety is always of paramount importance but a good car can come at a high price which isn’t always affordable. However, car loans can make life much easier if you are looking a car but can’t pay all of the money up front. Whether you are looking for a brand new or used car, prices can vary greatly. Aside from the purchase price are other costs to consider, including tax and insurance.
What is a Car Loan?
Unlike a hire purchase where the car company technically owns your car until your final instalment has been paid off, a specialist Car Loan can give you the chance to buy your car outright and pay back the loan over time. Car Loans are provided by companies who offer a quick, user-friendly service. Generally, you can apply online and are rarely turned down. In fact, most specialist car loan providers highlight that they are willing to take on customers regardless of their credit history. This makes them especially appealing to people who have been turned down elsewhere.
Can anyone apply for a Car Loan?
Most car loans ask for your driving licence, passport, proof of address and they might ask for a few bank statements. They might ask that you are at least 21 years of age. A credit check might be carried out and this could affect the amount that a customer is then offered – but a poor credit history won't necessarily mean that an applicant is turned down. In many cases, even self-employed people will be able to get a car loan.
How to finance your vehicle
There are many of ways of financing your vehicle. You could make a cash purchase which means any payment that takes place in one go. It doesn't mean you have to pay in cash (notes and coins). Make sure you check that all the paperwork is genuine and above board before you hand over any money.
Lots of dealers offer their own arrangements, most commonly the Hire Purchase (HP). Another form of dealer arrangement is the Personal Contract Plan (PCP). They are types of loans, and will carry an APR rate – make sure you take into account fees and charges as well as the rate when you work out if this option is worthwhile.
You can get a range of loans and credit cards these days, to help pay for a significant purchase such as a car. Today, you can tailor your loan search by getting a Car Loan from a specialist provider. There are many available who offer an easy online application process and they usually cater for people regardless of credit history.
Before you apply for any sort of loan make sure that you consider what you are doing carefully and seek financial advice. Read the terms and conditions of any loan advertised thoroughly before you make an application.
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