Getting That Dream Car
You might have been spending sleepless nights for months now balancing your finances just for you to have that dream car of yours parked in your driveway by the next months. Well, it is good to save some amount from your salary in order to buy your dream car by cash. However, it may not be the practical way to buy one because today there are a lot of options in which one can buy a car without spending many amounts of money. You can have it through car financing, auto loans, bank loans and bad credit used car loans. With the economic recession, surely the prices of some cars today are lowered down, and it is a good season to acquire one.
Car financing is like getting your car without taking out a large amount of money from your pocket, but instead you go to financing agencies and firms who can shoulder or finance the expenses for you. In return, you pay them an amortized amount depending on the terms of the contract.
There are different ways that you can finance your car. However, each has its advantages and disadvantages.
Bank or Credit Firms
Some banks usually offer with them car loans at a low interest rate. Credit Unions and firms also have the similar offer as other banks.
Advantages
- The rates are competitive.
- You can personalize services from a bank agent.
- The add-ons don’t embed sales pitch on it.
- Bank agents are the ones who can tell that you are paying higher.
- Includes a life insurance for free.
- Includes disability insurance.
- Evenly distributed simple interest for the entire duration of the loan.
Disadvantages
- May not be as convenient as dealership.
- Longer processing period – cannot be done overnight or in a weekend.
Online Financial Firms
Nowadays, there are plenty of online institutions that deal or offer car financing. They all send spam and unsolicited emails just to advertise about their promo and offers.
Advantages
- The rates are competitive.
- Quick processing
- Easy way of getting a loan
Disadvantages
- May contain scams.
- May be dealing with unknown agent.
- Breach of trust and information security on the customer
Dealership
In the US, there are a lot of available car dealers who can work at the details and hassles of acquiring a car. You just have to look for the one that can be trusted and with a great reputation.
Advantages
- Very convenient
- Fast processing
- Sometimes competitive rate
Disadvantages
- Has a high push on add-on sales
- Payments are not equally spread.
- Pressure from dealers
Home Equity Loan
Sometimes you can finance your car by using the equity in your home as collateral to the car loan.
Advantages
- Very convenient
- Fast processing
- Sometimes competitive rate
Disadvantages
- Has a high push on add-on sales.
- Payments are not equally spread.
- Pressure from dealers
Bad credit used car loan
Sometimes, even though you have a bad credit standing, there are still agencies that cater for a car loan for you. They may offer only the used car but at a good running condition. If you are lucky enough, you may be able to find those that offer brand new cars.
Advantages
- Convenient for those with bad credit
- Easy processing
- Sometimes competitive rate
Disadvantages
- May increase your bad credit standing.
- Only used cars
After choosing which financing type you are going to pursue, it is best to determine the interest rate at which that said financing type can offer. The important thing is that you get a low interest rate with your loan or credit.
You may wake up one day that your car is no longer at the garage. So be sure to maintain a good credit standing. Also, other financing institutions base their interest rates according to your credit standing.
Getting a car through credits and loans is good as long as one can afford to pay the monthly payment without neglecting or being in conflict with the payments for the mortgage, education of the children, and food for the family. You may have a BMW but in return you sacrifice the comfort of living – good house, happy family, enough food, vacation and recreation, and most of all, healthy life.