In this era of development, where everyone is willing to have their own house, car, and business to run; loans are a good source. Not every person has enough cash in hand to buy a car when they need it most. It has got very easy with the introduction of car loans; many banks and financing companies are ready to give you the loan on various terms and conditions. With the help of this, you can buy a car which you want or afford to pay for. So, when you decide to go for the loan; one must understand his budget limitation before taking a loan.
Let’s have a look at different types of car loan rates Australia available in the market;
- Secured and Unsecured loans: Car loans are mostly considered as secured because the possession of the car is not transferred to the borrower until or unless he pays the full amount of it. But sometimes lender only believes on a promise of the borrower and lends his money.
- Simple and Compound interest loans: Simple interest is calculated on the outstanding amount. If you paid any down payment, interest will be calculated on the remaining amount you have to pay. However, when interest is computed on total duration and divides into monthly payments is considered as compound interest.
- Direct and Indirect financing: When the buyer of a car directly goes to the finance company for a loan before purchase is the direct form if financing. But if the buyer has no contact with the lender like car dealership it is indirect financing.
- In-house financing: It is a form of the dealership in which dealer not only sells you, your required product but also provide a loan. You have to pay the installments to the dealer
- New and used car loans: used cars are less expensive than new cars and also have less credit length but they have a high rate of interest compared to new cars.
When you want an fast cash online, you should be prepared for it such as what documents you need to present in the bank or any other party from where you are going to take a loan:
- Details about your income and job history
- Proof of the assets you have
- Driving license
Access your need, ability to repay and best available options; while making a decision about any loan you want.