4 Ways to Finance Your New Vehicle

You might be interested in purchasing a vehicle, and you might not have the money to pay for the car in cash. If this is the case, you shouldn't worry, since there are various financing options that might work for paying for your car purchase.

If you're wondering about the different ways that you can finance your vehicle, you may want to consider the following options.

Apply for a Loan through Your Bank

First of all, if there is a bank that you already regularly work with for your financial needs, you might want to check into your options with them first. Your bank might offer car loans. 

If you are able to secure one of these car loans, you might find it's easier for you to get approved than if you were to go through a different bank that you don't already have an established financial relationship with. 

Plus, you might feel better about taking out a car loan from a financial institution that you already trust.

Get a Loan from a Finance Company

Not only can you potentially get a car loan from a big bank, but you can also check into finance companies. There are various finance companies that grant car loans, and some of them are even willing to work with people who have less than perfect credit, so this could be a good option for you.

Opt for Dealer Financing

Some car dealerships actually offer their own financing. Basically, this means that you make payments directly to the dealership each month instead of to a bank. Check into dealerships like On-Trac Auto Sales to find out if dealer financing might be a good option for you.

Pay with a Credit Card

When you think about swiping your credit card, you might think about using it to pay for things like new clothes or electronics or to pay your day-to-day expenses. 

However, believe it or not, many dealerships do accept credit cards. This means that you might actually have the option to pay for your car purchase with a credit card. 

This can be a good option if you have a credit card that has a high enough limit to cover the purchase. However, you should make sure that you are mindful of things like interest rates and minimum payments on your credit card after making this big of a purchase.

As you can see, there are a few different ways that you can finance your vehicle. You might find that one of these options will work well for you and will allow you to purchase the car that you want, even if you don't have cash on hand to pay for your purchase outright.

Car Title Loans: The Art of Borrowing Responsibly

Loans (Photo credit: zingbot)

Car title loans are popular means of financing for individuals who live on tight budgets. The said loans are relatively easy to obtain and borrowers simply need to agree on the stipulation that they need to surrender their car titles. 

In general, lending companies provide loans that amount up to 50 per cent of the market value of the car that will be used as collateral. They are short term loans (need to be repaid within 30 days) and collaterals are necessary so that lenders can recover their investment once the loan is defaulted.

While car title loans are relatively helpful in a myriad of ways, it should be noted that there are certain risks that are involved in them.

It is a good thing though that risks like losing one’s car, paying high interest rates, and accumulating excessive debts, among others can be easily prevented if interested individuals will borrow responsibly. One way to achieve this is to avoid becoming victims to the loan trap

Avoid becoming victim to the loan trap

Borrowing car title loans should always be the last resort. However, for individuals who live on monthly budgets, they do not have other choice but to procure them when emergency situations arise. Individuals who will apply for car title loans should only borrow the amount that they need.

They should not be tempted to borrow more than what is necessary because it could somewhat give a false sense of financial stability. A lot of times, this is easier said than done because of the convenience as well as the flexibility of car title loans, many can be easily tempted to obtain more than they need.

Also, the said loans are easy to obtain since borrowers do not need to send their payment until the 30 day period lapses. Borrowers should remember however that if they act responsibly at the start, repaying them can be very manageable.

Putting this factor into consideration, it would be best to determine the exact amount that need to be borrowed before applying.

Conclusion Car title loans are some of the best loans that anyone can procure because of their convenience and flexibility. They can be very beneficial to individuals who are responsible for their actions but detrimental to those who act on impulse. Because of the said factors, borrowers should make it a point to borrow responsibly and avoid the loan trap.