It might seem that a used car loan is granted on the same terms as the one you take when buying a new car. If you decide to buy a used vehicle, you will incur lower costs, but you must remember to carefully check all documents and inspections of the car. It is very important that the car came from a reliable source. If you already have an eye on your dream car, it’s time to choose financing. Check what to look for when you need to choose a loan to buy a car.
Used car loan – what to look for?
When you decide to buy a used car and you do not have enough money for it, you can use a cash loan or a car loan. A car loan is usually a cheaper option than a cash loan. However, the second option does not require you to provide the bank with all documents related to the vehicle, e.g. insurance, technical condition or inspections.
If you have already found a car that meets your expectations, it is worth to choose a financing offer that will be tailored to your needs. The most convenient solution will be to use the loan comparison and calculator. When comparing the cost of credit pay attention to:
- Loan interest rate,
- Actual Annual Interest Rate (APRC),
- car insurance costs,
- early repayment fees.
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Used car loan – is it worth it?
A used car loan will be more expensive than a new vehicle loan. So you need to carefully analyze your choice. The bargain price of a used car may be tempting, but keep in mind that if your car does not meet the age requirement and is too old, the bank will not give you a car loan. Compulsory insurance, the need to establish other collateral that can prove costly, will, in simple terms, be unprofitable.
Car loan – how does it work?
A car loan can be an option to consider if you need extra cash in the short term. You can use this solution if you own the vehicle and are its sole owner. Of course, it cannot be covered by any credit. When a third party is entered in the registration certificate, she will also have to take back the loan against the car. The amount of money you get against the car depends on the age of the car and its condition.
Contract of transfer of ownership
It is on its basis that a car loan is granted. The lender becomes the partial owner of the vehicle until you repay the debt. After repayment of the loan, you will delete the bank or loan company from the documents and become the sole owner of the car.
Car loan without BIK and KRD
If your credit history is not the best and you have been in arrears with payments, you should consider a car loan without BIK and KRD. Loan companies can offer you a car loan online, without the need to provide income documents, and they’ll give you loans even when you hit the debtors’ database.
However, it is worth remembering that car loans from companies that grant them despite their bad credit history are usually more expensive and for a shorter period, compared to a bank loan.
If you want to find the cheapest car loan, you should carefully compare the offers. The loan calculator will also be helpful in this situation. And if you run a business, consider leasing.