LOANS BLOG

Loans blog – The finance market consists of a number of different sorts of loans, and one of these loans is a car loan which are available from the garage from which you buy the car.

If you are wanting to buy a car, you look around various garages until you see the lovely shiny vehicle that catches your eye.

When you find the car that you like, you can arrange a loan at the garage. The salesman will ask you for some information, such as your full name, date of birth, etc. and pass the application to a loan company for approval.

When the loan is approved, it will not be for 100% of the purchase price, as 100% car loans are not available ,and therefore you will need a deposit.

A deposit can be from 30% to 40% of the purchase price which is pretty substantial

This means that in a vehicle costing 15,000, the minimum deposit would be 5,000, and if the trade in vehicle is not worth that amount ,or there in fact is no trade in, the buyer will have to fund the deposit himself.

People who only rent their home or reside with parents, etc. have no alternative to this other than trying to obtain a bank personal loan, but these are difficult to come by at present.

Homeowners are in a different place as regards availability of loans, whether these loans are to buy a car or anything else for that matter. They are in the fortunate position of being eligible to obtain either a remortgage or a secured loan.

Both secured loans and remortgages are available to homeowners with sufficient equity in their property, and they come with low rates of interest .

By raising funds by means of remortgages or a secured loan the vehicle can be bought from a private individual and as such the car will be cheaper. At the same time you can borrow a bit extra and carry out debt consolidation at the same time.

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