If you are in the market for a new pair of wheels or you would like to trade in your current vehicle then it can be both an exciting time but a time when you need to worry about how you’re going to finance such a thing. Things are a little difficult now all across Australia and indeed the world financially and so many people don’t have the money to put on the counter and pay in full. This is why many Australians are looking for a better option so that they can finance this important purchase but wanting a loan and getting a loan are two completely separate things.
There are a number of finance deals available with the car dealerships themselves but sometimes it makes more sense to take out some personal loans to fund life’s needs. You can take out such a loan and you are certainly not restricted to what you can spend the money on so if you would like to borrow a little bit more, you can afford to both purchase your car and to spend money on other things that you have been putting off for quite some time now.
If a personal loan has never been a consideration before then maybe the following are some great reasons why it would make perfect sense.
- It makes it more affordable – Some of the finance deals offered by car showrooms are not the best in the world and the interest rate could end up being a lot higher than it normally would be for a personal loan. Many finance companies will allow you to pay back for the car over long periods of time and so you end up paying double what the car is actually worth. By going down the personal loan route, there are opportunities to save yourself a considerable amount of money.
- You enjoy better flexibility – If you do sign on the dotted line for a finance deal on a car from your dealer then they set out the number of years and they tell you how much you need to pay back over the coming months. You may be restricted to a 3 to 5 year period and this may not be suitable for your current financial situation. When you take out a personal loan, you can spread the costs out over a longer period of time and that makes it more easily affordable.
- The car is yours – With the dealership finance deal, the car is never yours until it is paid for in full. With a personal loan, you pay for the car immediately, you get to enjoy some discounts because you’re paying in cash and the car belongs to you. If you want to make any modifications to the car then you can and if you want to sell it then that is a possibility as well.
These are three excellent reasons why taking out a personal loan for your car purchase is warranted.
