Auto Financing Tips When Purchasing Cars
Posted: Sep 21, 2017
There are many lenders that offer non-traditional auto loans and other types of loans used for the purchase of used cars. Buy directly from the owner can save you thousands of dollars. If you do not have the funds, you will need financing this is where car loans can provide the help.
Car Loans for Used Cars
Obtain financing for the purchase of a used car can be difficult, most lenders do not like the idea due to the high risk involved. The value of the car depreciates; this is why some traditional lenders offer loans for buying cars. These loans came with shorter repayment options to offset the depreciation value of the vehicle.
However, there are non-traditional lenders willing to make loans secured and unsecured loans for the purchase of car, in exchange for an interest rate slightly higher provide the necessary funds to purchase a used car from the previous owner and adapt the loan to meet your needs. You will be able to get a higher loan amount, longer repayment programs, lower monthly payments, etc.
Alternative Sources of Funding
An interesting alternative to finance a new vehicle is the use of home equity loans. It may seem strange, but the truth is that the mortgage is a very interesting source of funds, as it allows very favorable interest rates on loans, lower payments for sums higher monthly low of loans and programs flexible payment.
With a home equity loan you will not have trouble finding the loan you need, as collateral for the loan is the same car, but the remaining equity in your home. Equity is the difference between the value of your property and debt that is guaranteed by it.
Advantages of This Method
The risk of home equity loans is less than conventional loans; you will be able to get money with an interest rate that can be half of the rate charged usually auto loans. Also, since you can get a loan with amortization up to 15 years. You will be able to get lower monthly payments without having to make sacrifices.
The use of equity for the purchase of car may is not the traditional way; it has advantages and is useful when you want to buy a used car. Remember if you default on a home equity loan they can put a lien on or even reposes of the property.
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If you're looking for New & Used Car Offers in West Chicago then visit Haggerty Ford dealership because they are the most reliable ford car dealer in Chicago & surrounding area.