Part 2 of car loans Driving down the cost of car finance
- Self employed loans. When being self employed is the impediment
- If you are selfemployed and want a loan, this article is a useful read.
- Used Car Loans
- The car salesman will also want to sell you a loan. Stop. You ill probably get better terms elsewhere.
- Used Car Loans
- The car salesman will also want to sell you a loan. Stop. You ill probably get better terms elsewhere.
- Consolidation Loans for Tenants. Empowering Tenants with a Method to Counter Debts
- Tenants will find it harder to raise a loan but its not impossible. This article explains
- Loans For Bad Credit
- If you've got a poor credit history, can you borrow and if so how much ? This article explains.
The other alternative is Personal Contract
Purchase. These are the deals most dealers will attempt to sell to you. You also agree the annual mileage you expect your car (cheap mortgages) to clock up. Then you pay a deposit and part of the purchase price is deferred until the end of the agreed payback period. Your monthly repayments then pay off the balance and the interest. These schemes are very flexible so you can choose the length of the personal loan and the amount of the deposit but interest rates vary considerably between lenders. At the moment the average is about 12.8% - still well above the 5.5% rate for a cheap personal loan.
At the end of a PCP contract you'll have three options - pay off the ( pet insurance ) deferred sum and keep the car, trade in the car using the trade in value to help pay off the deferred sum and hopefully leaving a balance towards a new car, or hand in the car and walk away with nothing more to pay.
This last option is always subject to the provision that your cars' condition ( loans ) reflects normal wear and tear and its mileage is in line with the annual mileage you agreed when you purchased it. If the mileage exceeds the agreed mileage, then you'll have an excess mileage charge to pay based on the number of excess miles. The cost per excess mile will be specified in the PCP agreement.
One of the advantages of PCP is that the guaranteed buy back option, effectively protect customers against excessive depreciation.
As the dealers take a commission for selling the PCP contract ( motor insurance ) you may find that they will give you a bigger discount off the price of your car or even throw in a low cost servicing package or low cost insurance. But you'll need to do a little homework to ensure that these extra goodies are truly worth the extra interest you'll have to pay within the PCP contract.
Loans may be secured on your home or other property. Think carefully before securing other debts against your home.
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