While thinking of buying dream car though a loan, you want the loan to remain a burden less affair through out its repaying duration. Well this you can ensure through Secured car finance which is a especial loan for buying car.
Though you can offer any of your valued assets like home as collateral, but the advantage of secured car fiancé is that you do not have to risk your home for it. The very car you intend to buy serves the purpose of collateral. The lender takes deal papers of the car in possession till the time you pay off the loan fully. You can drive the car in the mean time.
Before applying for secured car finance make sure that you have sufficient money for making down payment to the lender. You should also know your credit score as interest rate depends a lot on it. A good credit score enables in a loan of lower interest rate whereas bad credit borrower have to fork out interest at higher rate. Check your credit report for any inaccuracies before applying for the finance. And if credit score is very low then improve it first by paying off some easy debts.
Secured car finance gives you greater amount of loan depending on value of collateral. However the lender will not approve a loan that is more than the value of the car. So you should first know the price of the car. Also remember that unlike other secured loans, you shall be repaying secured car finance in shorter duration ranging up to 7 years.
Bad credit people take secured car finance with ease as lenders do not see risks because of collateral. As you clear secured car finance installments in time, your credit score improves.
Online lenders are source of lower rate secured car finance. Though banks and financial companies also offer the finance, but at comparatively higher rate.