Car payments just got easier – and cheaper – thanks to cheap Pensioner car loans. Of course, it's always advisable to conduct proper research before committing yourself to a purchase of any kind, so you must understand the terms and conditions ahead of time. Here are five common misconceptions about vehicle financing:
Car Loans Cannot Be Availed for Used Cars.
We all know that car financing is available only for brand new cars, not used ones. But the fact is that you can get second-hand cars financed as well. You will want to stay away from any scam or fraudsters who claim they will finance your car if it's not in good condition. Many people fall victim to such deals every day! So be careful about this, use your common sense, and remember that if something looks too good to be true, then it probably is.
It's Better to go for 100% Financing.
While the idea of financing your entire car purchase may sound great in theory, with auto loans, it's important to remember there's no such thing as a free lunch. That's because if you decide to go with 100% financing, it's possible (though not guaranteed) that you'll end up paying high rates of interest, which can eat up all the savings and more. While it might be nice to say that you won't have any out-of-pocket expenses when starting with your new vehicle, chances are you'll end up paying more over time. So take things from another perspective: why not opt for 80-85% financing -- what are the odds it will cost less in interest than a loan where you pay a bit extra? In fact, by putting down extra cash initially on your car instead of going with 100%, you could reduce the interest to zero!
You Will Not Find a Better Deal Elsewhere
Dealerships typically offer a wide array of vehicle options and can be quite persuasive when trying to convince you to purchase one of their cars. They'll tell you that you won't find a better deal elsewhere, but it's important to do your homework and look around in the market before signing on the dotted line. A good salesman knows their customer! If you're looking to finance your new car at work, remember, though, that the monthly payment offered is critical; ideally, look for a deal that allows you to comfortably pay off the loan without compromising your savings each month.
Go for a Pensioner Car Loan Because You're Eligible for One
You have probably received several emails and messages saying you are ready to take out a car loan. It can be very tempting just to apply but ask yourself if you need a car (or even a vehicle) first. You should also consider if you can afford one. These questions will help keep you focused on what's important when it comes time to make decisions about financing vehicles in the future.
You Need to Make a Big Down Payment
A common misconception about car loans is that you need to make a huge down payment upfront before you can avail of the loan amount, which is not true. While this is true - you do need, for example, to make a down payment worth 15% of the loan amount - with most banks and dealerships financing up to 85% of the loan amount, it amounts to only 15% so, if you are buying a car worth Rs.5,00,000 with a 65% bank loan and end up paying only Rs.75000 instead of Rs.700000.
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Source URL : https://www.freedomcars.com.au/news
