Many people who buy new cars opt to get a loan to pay for it. In fact, there are several options for buying brand new cars from dealers, such as hire-purchase, personal contract, or a personal loan from the bank. But did you know that there are some finance options available to you even if you want to buy a secondhand vehicle? Buying a car is an expensive outlay for all of us, and many of us just don’t have the ready cash available. So the option to gain dealer finance even for a secondhand car purchase is useful.
Find Your Local Dealer
If you live in Auckland, there are over 100 secondhand car dealers ready to serve you. However, you’ll also need to find a dealer that can offer you finance on a used vehicle. Make your search more thorough, using your suburb and finance as particular search parameters. So, if you live in the south western suburbs, type in “New Lynn car dealers that offer finance” and see what comes up. Have a browse through their website, and if you have further questions you can give them a call – their phone number will be listed on the website.
Find Out Their Finance Options
It is extremely useful that car dealers are able to provide finance options on purchasing a vehicle, however, you still need to make sure that you’re gaining the best deal. You’ll need to check out their interest rates, and if the deal is worth the value. You’ll also need to check when the payments are due – they could be demanding weekly, fortnightly, or monthly repayments. Terms can be fixed from anywhere between 6 months to 6 years, and this will affect how much you have to pay back overall.
Weigh Up the Pros and Cons
Mostly, you need to ask yourself if you can afford the loan. Some options may offer a loan with no deposit, so you don’t have to front any cash; however, these tend to have a higher interest and repayment rate. Sometimes it may be worth presenting a deposit, which can hover around 10% of the value of the vehicle, in order to decrease the amount of payments, interest rate, and length of time you’ll need to pay back your loan.
Make the Right Decision
Taking up a car loan can be a good way to finance the purchase of a car. Even for a used vehicle, we can’t always afford the cost of a big purchase. Car finance becomes extremely useful, but you should decide whether the finance is a good deal, before accepting the loan. When are the payments due? How much are they? How much is the total value of the loan, and how much interest will be charged? Mostly, you have to ask yourself if you can afford the car loan. If you can, then borrowing to purchase a used vehicle is a wise choice.
