Private leasing is not for you, and you do not have enough money to buy your new car in cash. Whether you are buying your car through an authorized car dealer, or buying the car from a private individual, the only financing option left is to buy a car with a loan.
But what kind of loan suits you best, and what do you need to know before you make the purchase – or even have the opportunity to get a Florida title loans?
The car with cash stake
The most common way to buy a car is to take out a car loan from a lending institution, such as a bank. Then you borrow 80% of the car’s value and put 20% of the sum in a cash bet.
To be granted a car loan from a bank or a lending institution, you must apply for a so-called loan promise. There, the bank assesses your personal finances and your repayment options.
If you have previous payment remarks, it can affect your chances of getting a loan promise. Once you have been granted a loan promise, it is often valid for several months, so that you can find the right car in peace and quiet.
The terms of the loans (interest, installments and installments) differ from lending institution to lending institution. There are sites where you can quickly and easily compare loan terms and find one that suits you.
At Swedbank, for example, it is possible to borrow SEK 100,000 with 3.94% in variable interest and a repayment period of 5 years, which means that your total borrowing cost will be just over SEK 111,000 – or approximately SEK 1,855 per month divided into 60 installments.
Authorized car dealers usually have close collaborations with lending institutions, and help you with all the practicalities of setting up a loan that suits you.
It is also possible to get a loan without a cash rate, but it can be more expensive in the long run.
Do you have payment remarks, or other obstacles that make it impossible to take out a regular car loan? There is still an option for you.
Private loans – or so-called “blank loans”
When you take out a loan through a bank or a dealer, they have both the car – and 20 percent of the car’s value in the form of your cash deposit – as security for the loan. A loan where the lender has no security is called a private loan, or “blank loan”. Such loans can only be taken from a bank, and there are several disadvantages.
The loan will be much more expensive. The lender takes a higher risk, and therefore you will have to pay a higher monthly interest rate to “cover” the risk.
Therefore, do not take the first best loan offer that you find. Compare the interest terms with the lenders who have unsecured loans to buy a car without a cash deposit. On comparison sites, you can make the comparisons in peace and quiet.
The repayment, ie your repayments on the loan, also becomes more important when you take out an unsecured loan. This is because you should repay at a faster rate than the car’s value decreases.