Some finance options can be difficult to understand when it comes to purchasing your next car. So, at Corporate Car Brokers, we have broken down each option, making it easy to decide which finance option is best for you. Personal Car Loans have always been a popular way to pay off a car and is one of the most common finance options offered by dealerships and finance brokers. One reason for this may be due to the fact it is one of the most straightforward and simple finance options for both new and used vehicles.
What is a Car Loan?
Put simply, a personal loan is borrowing money from a bank, building society or other lender. This type of loan has remained as one of the most popular ways to finance a car over the years due to the simplicity of borrowing money off an entity that the customer is already connected with. This method is also a common go-to finance option due to the fact that the customer receives complete ownership over the car once the loan has commenced.
Corporate Car Brokers are connected with a variety of financial institutions which makes it easy for us to compare the most suitable loan for your needs. We can also organise the time frame of the loan depending on your financial situation as well as ensuring we secure the lowest interest rate for the time period selected.
How do Car Loans work?
Similarly, to other types of loans, a car loan is negotiated with a lender, usually a bank or building society and from there, regular payments are made. These payments will differ in range depending on; the price of the car and the length of the loan. Usually lenders will provide a few different options for car loans and this will accommodate for whether the car is brand new with warranty, used with warranty or without warranty.
What makes a Car Loan different from a Personal Loan?
The only difference between a car loan and a personal loan is that in a car loan, the bank or other entity that is lending money will often provide more competitive rates due to the collateral that is involved. The collateral being the car in this instance provides security for the lender. So, if the car is disposed of in any way – written off, sold or traded-in, the owner of the car has the responsibility of paying off the remainder of what they owe.
Therefore, interest rates for car loans are generally more competitive as the lender takes the collateral of the car into consideration, especially if it is a brand-new car with manufacturer warranty.
So, if you think a car loan is the most suitable for your next car purchase, contact Corporate Car Brokers on 1300 539 010 to find out more or visit https://www.corporatecarbrokers.com.au/ for more information!