Owning a car is not a simple thing. It actually comes in second as the most expensive form of ownership after a house. This is because you will incur other costs apart from buying, ranging from insurance to maintenance. It, therefore, requires that you prepare adequately since it will require finances and calculations for you to own one. For you to have a car under your name, you have to consider your financial capabilities. Research on all the available sources of funds that can help you to get money to facilitate car payments.
Top options for car finance
Keeping your money in banks, especially when interest rates are low will not gain you much. Take the money you have already saved and use it to pay for the car. Avoid saving and borrowing, to prevent small charges like paying for interests later. If you do not have enough cash or savings on you, use the available you have to pay the bigger portion of the deposit.
The dealership will not give you car loan directly, but through them, you can secure money to buy a car. This is made possible, from the good relationship dealers have with financial institutions such as the banks, credit unions, and other financial independent companies. You can also check with different car dealers, to ascertain the amount of interest you will pay in the end. Settle for the best deal, and cut off dealers that hike interest rates to make a killing off you.
You can take a personal loan from banks, building societies or other financial institutions to buy a car. Ensure you have good credit ratings to able to qualify for a loan. Banks have different interest rates, take your time to research and choose one that you are flexible with. Do not place your other properties such as a house to be used as collateral. In the case of a failure to service the loan, you may lose your house.
Family and friends
A lot of people find it hard getting funds from banks or other independent financial institutions. This could be as a result of poor credit ratings, or not enough credit history to qualify them for these loans. However family and friends can come to your aid by lending you partly or wholly the amount needed. Requesting a friend or family member to take a loan on your behalf can also work for you.