All About Car Finance

Are you planning to get a car? Let’s help you with the car finance process by connecting you to the lenders directly. With so many lenders in the market offering car finance, finding the right one might seem simple, but it is quite complicated. You might end with terrible car finance deals if you are not careful. But when you let us handle your finance, you have nothing to worry about.

Car finance is quite a popular form of finance with so many people seeking and so many lenders offering it. Whether it is a traditional lender like the banks or a non-traditional one such as the various finance companies, car finance is available everywhere.  The most important thing is to find the right lender that will give you the car finance you want. This is not as simple as it sounds if you are not familiar with car finance. But you can come to us to help you with this. While we do not offer car finance, we can link you up with the suitable lender.

There are several things you need to understand when dealing with car finance, and they include;

Types of car finance

Our lending partners have several car finance options, all of which can help you get that car you want. The form of car finance you go with will usually depend on several personal factors, but here are the common options.

Car Loans

This is no doubt the most popular form of car finance. In fact, it is what most people think of when they hear of car finance. In this type of car finance, the lender simply gives the borrowers the money they need to buy the car, and it is the borrower that buys the car themselves. Most times, car loans could be the whole amount of money needed to buy the car, or it could just be a substantial part.

Several lenders offer this form of car finance, and a borrower doesn’t have to look too far to find a lender that will give them the perfect car loan. Car loans also come in a variety. It is either a secured car loan or an unsecured car loan. A secured car loan is one that comes with security as an important condition for getting the loan. This means you have to present collateral, a property of yours that is equivalent in value to the loan you are seeking. In the case of a default, the lender will take possession of the property you have used as collateral. On the other hand, an unsecured loan is one where all you have to do is present all the necessary documents for the loan, and the lender does not ask you for collateral before giving you the loan.

Each of these has its own pros and cons. A secured car loan is not available for someone who doesn’t have the substantial property needed as collateral, but it usually comes with less strict terms and lowers interest rates. Your credit rating doesn’t even have to be exceptional for the secured car loan because the lender has your property if you default. On the other hand, an unsecured car loan is much trickier as the terms could be stringent. The lender might also make sure they are not available to people with bad credit rating, and the interest rate is usually higher, but you don’t need a property to access it.

Business Vehicle Finance

Most businesses need cars for their successful operation, which explains why businesses have various financing options to get the vehicles they need. Some like ABN Car loans, Low Doc Car Loans, and No Doc car loans are specifically for new businesses and help them get a vehicle even though many lenders will not give a car loan to a company that has not spent up to two years in operation. There are also other types of business vehicle finance like hire purchase, lease, chattel mortgage, etc.

Lease

This is simply hiring a car for your use. It is perfect if you don’t need the car for permanent use like when you are in a new city and just need a car for your time there. Also, if you are someone who prefers to use the latest models of cars, a lease will work for you. With this, you are essentially paying for the period during which you are using the car, and in most cases, it rarely exceeds a few years. It is not the same thing as a hire purchase because you are not obligated to buy. But some leases give you the option to buy if you wish to.

Hire Purchase

This form of car finance is something you will usually get from the dealership, but there are lenders who also specialise in doing it. It is generally used to finance a business vehicle purchase, and with this form of finance, the lender owns the vehicle and gives it to you on lease. You are then expected to pay a stipulated amount monthly which is spread to cover the lease and the cost of buying the car. The borrower has an obligation to buy the car under this agreement, and once you complete the terms of the agreement, the car becomes yours. Before then, you will only be in possession without ownership, but once you complete the payment, the car’s ownership transfers to you.

As car brokers, we have seen many people struggle to get car finance or agree to an unfavourable deal in ignorance. This is why we assist our clients in getting suitable car finance by connecting them to our lenders and, if need be, negotiate the best deal for them. Getting car finance is quite simple when you work with us, and we ensure you end up with the car you want.