If you are thinking about buying a new vehicle or investing in car trading chances are you will need a financing method to pay it off. You can pay the car straight from your cash pile, but it might be better if you went ahead and paid off the car in the next few years. Now, as you might now the bank loans are the most common option when it comes to car loans with these probably offering a lower interest rate than some other lenders. On the other hand, a car dealership loan option might have higher requirements but will offer you both the short and long term loans, and you will be able to figure out the one that you can cover.
An important thing to know is that car loans are usually secured so if you don’t make the regular monthly payments you are at the risk of your car being taken away. With all this in mind let’s take a look at your best options when it comes to car loans!
Choose The Right Car Loan Option
- Hard money loans. Well, this one you might not have expected but hard money loans are actually pretty good for car financing as well. Lender options like the Delanceystreet will be there to support your car trading, and it takes no more than 12 days for your loan to be improved. As mentioned above the hard money loan option is especially good if you are starting a car related business and you have everything figured out. On top of all that, the hard money loans don’t know for a limit, so you will be to get all the finances you need, with the company giving even 90% of LPV without an issue.
- Short term loans. Now, when it comes to traditional loans, the short term ones might be the most popular out there. First of all, the interest rate is usually lower as that is how the borrower is rewarded by the hard money lender. Along with that, the benefit of a 36-month loan is that you will be paying off your car in a shorter span of time and you will be free to plan out your next big investment. Last but not least with this type of loan you never own more than what the vehicle is worth as there isn’t a chance that your debt piles up. On the other hand, the short term loan does commit a significant amount of your monthly incomes to the loan, and that can represent a problem in some case of emergencies.
- Long term loans. With this lender option, the most common loans are 48 and 60-month And though these have somewhat higher rates than the 36 one you will still be able to pay it off almost as fast but without the risk of your money being tied up. You can pay something above the monthly minimum every 30 days, and if you need your money for a specific situation, you can simply pay the minimum and spend the extra on your current needs.
- Online car loans. The online lender option has become quite popular and that for numerous reasons. You are able to apply without all the formal requirements; your loan is approved much faster, and last but not least there are no hidden fees.
Summary
Buying a vehicle or starting a car trading business usually requires financing and there are multiple lender options to support you. Still, it is wise to do your research and choose according to your monthly income and needs.
