Apply for and compare to car loan? Many people still buy a car with their own saved money. That way you already save the interest. Yet this is not always the best way of working. Applying for a car loan is sometimes the best solution because of the tax benefits.
Simple & secure application process for online title loans
One of the places where you can take out an online title loan is our site. The bank advances the money for the car or part of it and you make monthly payments for this for a period of one year to 5 years, depending on the amount or your tax plan. You can borrow the full amount from a bank, possibly supplemented with an extra sum for the registration fee and insurance. With a bank loan from the first day you are the owner of your car. The rates charged by banks are not very high and partly by law. Nevertheless, you will notice considerable differences between the banks themselves. Always ask in your bank about your annual percentage rate and compare this with other banks. The annual percentage rate of charge will be higher for second-hand cars that are older than 2 years.
Which car purchases?
When you apply for a loan from the bank, the interest will be strongly determined by the age of the car. When you buy a new car, the interest will automatically be lower than when you buy a second-hand car. Some banks apply for a cheaper car loan for a car that is 3 years old at most, others only offer interesting interest rates for a car that is not older than 2 years. You will therefore have to compare car loans and see what suits you best.
Request information about car loans
Buy a new car without applying for a car loan or financing.
They have the advantage that after the purchase you remain debt-free and do not have to pay any interest. The disadvantages are that you have to cough up the entire amount in one go and can not benefit from tax benefits. Who uses his car for his profession or for commuting to work can deduct his car expenses for tax purposes. A large part of the costs are then 75% deductible. In addition to the monthly depreciation, this also includes the maintenance costs and costs of insurance and taxes. But the financing of the car and fuel costs are 100% deductible. This is of course only for the percentage of kilometers during your professional use. It is therefore often cheaper to borrow than to pay for your car in cash. Because to car loan is therefore often cheaper than paying in cash, many people also focus on this. When a car loan can be found with an interest rate that is low, the monthly costs for the loan will certainly not be too bad.
Borrow money from the garage
You can also take out a loan in the garage where you purchase your car. Numerous car manufacturers and garages offer promotions for this and try to lure you to their points of sale with low monthly payments. You should know that this is a completely different type of financing than that offered by banks. This is an installment where you are required to pay a minimum of 15% on the purchase price. Often the seller also remains the owner of the car until the full amount has been paid off. This is the so-called reservation of ownership. This may entail risks with regard to accidents or theft. Read the agreement carefully before signing this. Certain constructors try to lure you with loans with O% interest. This always looks attractive, but it usually means that you get less or no discount on your car.
Leasing a car
Until recently, it was possible to lease an exclusive privilege for the self-employed and companies. In recent years, more and more private individuals can make use of this. With a lease you pay a fixed monthly amount for the right to use the car. At the end of the term you will have the opportunity to buy the car very cheaply and become the owner. The amount at which you can buy this is called the residual value and is determined in advance and can amount to a maximum of 15% of the original price. With an operational lease, the monthly price will be slightly higher because the lease company also takes all possible costs, repairs, taxes and insurance. You only have to pay for the fuel. With a financial lease, the monthly amount is lower, but you are responsible for the costs and maintenance.
Apply for a car loan online
You will also find numerous companies on the internet that offer loans for, for example, the financing of your car. Here you must make a distinction between banks that operate online and other financial institutions that do not work under the legislation of the banking sector. With the latter group, it will not be an official car loan, but a so-called mini loan where you can borrow money quickly. You hereby pay no interest in the amount to be borrowed, but a so-called handling fee. This treatment cost is a percentage of the loan amount and goes up quickly depending on the term of the loan.