Why You Need To Get A Car Loan Now
Did you see a car that you want but can’t afford it right away? Getting a car loan is the best way to get it. Whether it is a new or used car, having the right car finance company by your side will ensure that you have it in your driveway sooner than you expected.
But is getting a car loan worth it? Many people hesitate to get the loan because they fear it may not be worth it or that they may end up paying more for the car than its original price. Well, there are many reasons why you should get a car loan.
1. Improves Your Credit Score
We all look forward to having a high credit score, but it may be hard to get it. Having a car loan will help you build it up and establish an excellent financial track record because of the monthly payments you will be making.
2. You Get The Car Faster
All you need is to ensure that you meet all the requirements needed for your loan approval, and next thing, you will be heading to a showroom to buy your dream car. It is fast and convenient, instead of having to wait for years before your savings are enough.
3. It Can Pay For 100% Of The Car Cost.
Some lenders will give you 100% financing loans, depending on the brand of car you want. Also, having a higher credit score will significantly ensure that you have this type of car loan.
Getting financed for 100% of the car’s value ensures that you get the vehicle as soon as possible, and it also helps you finish other projects at hand.
4. Low-Interest Rates
Car loans have relatively low interest compared to other loans, especially if you have a good credit score. You can also choose the repayment tenure, which can be as long as seven years, making your monthly payments more manageable.
If you find the interest rate high for you, you can negotiate it, especially if you are a customer to the bank or lender.
5. No Collaterals Needed
Unlike other loans where you need to have land or a house as collateral, car loans do not need any collateral. The bank or lender giving you the loan will consider the car as enough security.
If you cannot pay for the loan, you do not have to worry about your house. The lender will repossess the car and sell it.
6. It Can Be Tax-Deductible
If you are a business owner and your business takes a car loan to buy a company car, the financing costs can be tax-deductible. According to ATO, you can acquire the interests on your car loans, repairs, insurance premiums, services, and more.
7. You Can Get Any Car Mode You Want
Unlike in the past, most of the car brands are covered under car loans these days. That ensures that you get whatever car brand you want, unlike buying with cash where your budget limits you.
All you need to do is identify your dream car, and if you can make all the monthly payments for that car, you can have it.
8. It Is A Good Investment Plan
Car loans ensure that you do not have to forego anything or cut your budget. When you want to buy a car with cash, you will have to make some sacrifices to get to the targeted amount. However, with a car loan, you can go on your daily expenditures and shopping because you only use a small amount of your salary to pay off the loans while the rest is for personal use.
9. You Can Sell The Car After You Finish Paying
Some people have concerns with car loans because, by the time you finish paying it off, it will be old. You can sell it or trade it in with a new one after paying it off.
10. You Can Modify The Car
Buying a car using a car loan does not restrict you on the modifications you make to the vehicle. You can change the color or even make some improvements.
To secure your loan fast, you need a good finance company like Car Finance Darwin. Their services are hassle-free and fast, you get the car loan that is most advantageous for your situation, and they also connect you with the best lenders.
By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.