Käyttäjä:BrainardScala411
Most will agree that money is king. Most will also admit however that they don't have the way to do that. This leaves one option, a car loan. There are a variety of various options and ways to approach financing the ideal car. The main one that's best for you will depend on your particular needs.
How the process works:
The applying process will be fairly standard across the board, with some variations based on which lending institution you go through.
1. First of all you will need to fill out an application form. This can involve providing information including your personal information, employment details, monthly expenses and monthly income. The institution lending you the money will make use of this information to determine whether you are eligible for vehicle finance.
2. The financier will ask you to definitely provide copies of certain documents during this process to reinforce the validity of your application. These documents will often include: A Valid driver's license (a no brainer) recent bank statements or pay slips, proof of residence (for example: A utility bill with your listed street address on it).
3. Once you have completed the applying process and provided all the necessary documentation, you will need to wait a couple of days while your application is reviewed. If all goes well an advisor will contact you to confirm the application.
What exactly are my options?
With regards to motor finance, you inevitably always wind up going through the bank. You can approach a bank directly for finance, or get the dealership you're buying you're vehicle from to set up the finance. Larger banks have a special division that deals with vehicle finance. Whenever you buy the car from the dealership they'll ask you whether you have finance set up already or if you would like them to arrange it for you.
The interest that you will be paying back will depend on the repo rate, your credit record and the loan period. The repo rates are the speed that banks lend money from the government reserve bank. The bank will prove to add a percentage to the repo rate to make a profit and cover costs. This is called the "prime" rate. Usually if you have a good credit record and fixed assets such as a house, you will be able to obtain prime or minus prime. Interest rates and loan periods will differ between banks.
A family member: The benefit here's flexibility. If there is someone inside your family that has the means to lend you money to invest in your car, it may be a great choice to consider. You'll most likely have the ability to negotiate the terms of the loan to a much greater degree than you'd via a bank or dealership.
And there it is. (Well more or less) For those who have a much better understanding of motor finance then I guess my job is done.
