While it is exciting and fun to shop for a new vehicle, the stress that can accompany vehicle financing could quickly become overwhelming. However, there is no need to spoil your dreams of having a new car by becoming too worried about financing challenges or limitations. Here is a look at the various vehicle financing options available.
Vehicle financing options
The traditional choice for buying a car is to use a vehicle finance loan that has been calculated according to your exact financing requirements. There are already various costs to consider when purchasing a new vehicle, so you always want to ensure that you are getting the best possible deal through your financing. Other options include a personal loan or a short-term loan, but these often come with short repayment periods and high interest rates that don’t make it ideal for vehicle financing.
How do I go about obtaining vehicle finance?
You could approach your bank directly to apply for a vehicle loan. You should have all of the vehicle specifications with you and stipulate your deposit amount and the period over which you wish to repay your loan. Another (perhaps easier) option is to work through the car dealership for them to apply for financing on your behalf directly. The dealership will already have an existing relationship with banks and will likely receive a better interest rate for you.
What about my credit score?
A poor credit record could, unfortunately, impact your chances of obtaining more credit on your name. If you don’t see yourself being able to revitalise your credit score in time to get a new vehicle, Earn-a-Car can assist with our rent-to-own cars. We don’t do any credit checks.