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Month: November 2016

Understanding Car Financing

Posted on November 26, 2016 in Uncategorized

When you want to purchase a car, one of the main considerations is financing. This is because many people do not have the initial high amounts of money, which are required to meet the cost of the car. One thing you should note about Car financing is that it is very hard to quantify, it is determined by many other factors such as the type of car that you want to purchase, the price tag and the possibility of a trade-in. All these mean that you will be offered different finance packages by different organizations, and it is your duty to choose the most appropriate one.

The best way to approach car financing

With all the factors involved, Car financing becomes a very complicated issue, which needs proper understanding of the financial world. Since most of us do not posses such skills or information, the best approach would be to involve the services of a car finance broker. The broker will assist you in all the areas associated with car financing. Remember car financing, just as any other form of financing will require various paperwork. In most cases, people are already overwhelmed by their daily lives, it is therefore better to leave the broker to fulfill the formalities helping you secure the loan.

Some people obviously benefit more than others do from this arrangement. One of the groups that will benefit mostly from the services of a car-financing broker is those who are self-employed. This is because most of them cannot produce satisfactory historical profit figures to satisfy the financial provider. The duty of the broker is therefore to find institutions, which are more likely to offer better terms. The broker is also going to help you negotiate for better terms just like those offered to people who provide sufficient history of profitable trading.

Since car financing brokers deal in only one type of financial product, they have a clear understanding regarding the product. They also use specialized tools such as car loan calculators, which will help you, understand the long-term effects of the loan that you take. Remember a loan might seem cheap now but present adverse effects later on. You will therefore enjoy more piece of mind depending on the advice provided by such specialists.

Apart from using the services of a broker, you can also source your car financing online. This method presents you with various banking institutions to source your financing from. In order to exploit this dimension fully, you need to have a clear understanding of what sort of deal you are getting into. Luckily, there are certain tools, which you can utilize to help you gain a deeper understanding of the loan you are acquiring. They include:

• Car finance calculator- this will help you get a clear picture of what you will be paying every month. It will also help you understand how long it will take before you can repay the loan.

• Chattel mortgage calculator- you can also utilize this calculator, which acts the same as the car finance calculator but on terms, attached to chattel mortgages rather than general loans.

Car Finance

Posted on November 19, 2016 in Uncategorized

You can never have a stable estimation when it comes to the world of finance and especially with car finance. This happens mainly because of competition in the market and then the price of cars is also an important factor as to why there is no ‘fixed’ rate of interest for cars. One important thing to note here is that there might be many type of car loan and finance options available to you, but you as a wide decision maker should decide only on those options which benefit you the most- in terms of saving money.

Not many of you know this but car loans or vehicle loans as a matter of fact are known to be secure loans. That means that there is type of agreement between the financial institution and the benefactor (you) that mentions that if you aren’t able to pay for the vehicle, it shall be used as a repayment! So naturally, you should know that the car finance rates should be a bit lower than what it would have been was it a personal loan of sorts.

• Search online for Car loans: The internet is a good place to start your research on car finances. New websites of financing institutions come up every now and then and they have this feature right on their website that includes a car loan calculator amongst other nifty tools/applications to help their customer. It is way better than to waste time, energy and fuel roaming door to door of every financing company that is in your city.

Another thing that can be done when asking for loans is by calling up the company and asking for assistance. Due to strong competition in the market and especially when no one wants to lose out on consumers, they will send their representatives to help you get a good deal.

• Thinking about Refinance? Not many people know about re-finance and a fewer know that it may actually benefit you. Refinancing is basically using the institution’s money to pay off the loan amount and then paying the company concerned from where you took the loan. Refinance gives you the option of having more time at your hand when you lack funds to pay off your debt. It is beneficial in the short run and is a good option to consider especially if you want to buy a higher valued car.

• Know Your Finance-Types of Loans: Before zeroing on a finance scheme, it is better if you know your options and the types of finance available. For example, loans are available as hire-purchase, interest free loans or even personal contract purchase. Based on you need, you can ask for the type of car loan from the financial institution you’re interested in.

• Compare: Nice people pay, wise people compare and then pay; this is because in the end it is your money that you use to write off your loan. There are some nifty websites that give the option of comparing the rates of the finance against some other companies, thus giving a clearer picture of the finance scenario.