Take Out a Car Loan and Drive Away With a New Car :
Written by: Vipul Jain
Do you want to get rid of the public transport system? Are you
fed up of waiting for the bus at the bus stop every morning?
Perhaps you should consider buying a car. A car will give you
the freedom that you have been wishing for since a very long
time. Cars do not come cheap. You will have to spend a hefty sum
to buy a car. If you do not have sufficient savings to buy a
car, you will have to wait for a number of years and make
savings. An easy option is to take out a Car Loans
and drive home your dream car.
Car loans are offered by a number of banks, building societies
and private lenders. You can take out any amount of car loan
depending upon your financial situation and repayment ability.
You do not have to repay your loan in a lump sum amount. Loan is
repaid in the form of easy monthly installments. Monthly
installments comprise the principal as well the interest
elements of the loan amount. The rate of interest depends upon
many factors such as the type of loan, borrower's credit rating,
The rate of interest on secured car loans is lower than
the rate on unsecured car loans. If the borrower fails to repay
a secured car loan as per the loan terms, the lender may
repossess the car and sell it off to recover his money.
Sometimes, a secured car loan is secured against the borrower's
house. Such a loan is known as a homeowner loan. Another popular
car loan is a personal loan. Personal loans can be taken out for
a variety of purposes. Personal loans are unsecured loans, i.e.
no collateral is required to obtain a personal loan.
You can also buy a car on hire purchase. In case of hire
purchase, you have to give a small amount of down payment to the
car dealer in the beginning. The rest of the money is paid in
the form of monthly installments just like a car loan. The rate
of interest on hire purchase is lower than the interest rate on
About the author:
Author: The author is a business writer specializing in
finance and credit products and has written authoritative
articles on the finance industry. He has done his masters in
Business Administration and is currently assisting Apply-4-loans
as a finance specialist. For more information please visit: http://www.ecar-loans.co.uk
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