Jul 27, 2012
Benefits and disadvantages of getting a car loan
If you’re in a tight spot and need money immediately, you can have it in a day or two if you own a car that is fully paid off. Be careful though as it is your car that is at risk. The beauty of a car loan is that it does not require approval as the car is paid for and there is no credit or background checking other than a simple inspection by the lender to ensure that the car is worth at least the amount you need to borrow.
How car loans and financing works
Car loans are usually for a month and it is easy to fall behind in payments if you are not careful. You should only do this kind of loan if you know you can make full payment as for every month extended the interest rate rises and it is difficult to catch up. This is the time to think carefully as the prospect of immediately getting a large sum of money can seduce you into putting up your car when it is not really necessary.
Advantages of getting a car loan
• You get the money the same day,
• There is no background and credit check,
• While you have the loan you can give the title and keys to the lender and still drive the car.
Disadvantages of a car loan
• Because of the short period of time for a car loan to be repaid you risk losing your car.
• If you default in the payments they will take control of your car and sell it to make money. You will then have the expense of a car lease.
• Only use a car loan if you know you can pay them back in full.
What you should know about car loans and finance
A car loan payment is usually due within a month and has a ridiculous annual interest rate. The unfortunate fact about car loans with money instantly available is that it seduces the borrower and he makes a decision which he would not normally have made and which he might regret. A better way to go is to approach a car finance service who works with dealers in the industry to shop around for you. In the meantime you can get emergency cash by making cash advances on credit cards, getting small consumer loans or procuring advances from your employers. When it comes to car loans, car leases and finance it is always better to work through an expert.