Budget is a critical factor that affects a person’s decision to Searching Used Cars. The biggest cost that they need to worry about is the cost of acquiring the car. Here are some options that buyers often use to arrange for finance to purchase a second hand car.
Loan from Friends and Family
A lot of people prefer to borrow money from friends or family members to pay for the used car. They may borrow the whole amount or partial amount to pay for down payment. At times, people prefer to use their own savings to buy a car and borrow the shortfall amount. This is a rather unstructured loan borrowing method where people save on interest amount that has to be paid.
Loan from Bank or Finance Company
This is another popular finance method that is used by people to purchase a used car. There are two types of loans that are poplar – used car loan and personal loan. The used car loan is a secured loan where the car is hypothecated until the loan amount is repaid. Hence this can be availed by people who do not have good credit rating. However in this loan you do not get the full amount of the asset’s value. You get only up to 80% which means the remaining 20% has to be managed by you. Personal loan is an unsecured loan hence can be availed only by people who have good credit rating. Although in this loan you can get 100% of the car’s value as loan, the rate of interest charged in higher.
Loan from Dealer
A lot of dealers have introduced their own EMI schemes to help buyers. Here you need to understand their terms and conditions better but it is a viable finance option.