Unsecured Loans for Tenants - Buying a New Car?

By: Andy Silk

So, you've got your eye on a spanking new set of wheels? Well, maybe not brand new perhaps but you still need a 'wedge' (in second hand car sales parlance) to be able to buy it. Like many other people all over the country, raising the money can often present a headache as there are so many providers all saying fairly similar things which makes the whole job very confusing. Don't worry though. We can hopefully take away some of the concerns you may have and find ways to conquer some of the more typical problems that tenants can sometimes face in raising the money.

Choice, or at least too much of it can itself bring problems. Deciding which lender to apply to can be particularly difficult if you've not been used to the world of finance. If you're a tenant renting your home, the job is made somewhat easier by default in that as you don't own your own home, you can't use it as collateral for a secured loan or mortgage application. That leaves you with unsecured credit to apply for which can take many forms: unsecured loans for tenants and tenant loans, credit cards, store cards, hire purchase agreements etc. What you need to look at now is what kind of loan will suit your needs best and that can often mean the lowest interest rates and a term that enables you to keep the monthly outgoings to a manageable level.

If you've spotted a car, then you need a loan fast and in many cases, applying for a loan after you've spotted one just doesn't give you enough time to get the money through even though, in most cases, unsecured loans for tenants and tenant loans can be completed in only a few days.

The best way to start the process of buying a new car is to look at the make and model of a vehicle that you like, decide your budget which will often give you an age and a mileage figure to work with. If you're happy with the type of vehicle and what you could most likely get for your money, next apply for a loan. You could go direct to a lender like a bank but if you fail their lending criteria because they don't have products that are designed for your financial circumstances, then you may have to apply elsewhere which will cause a delay. You may find that the best alternative is to apply to a finance broker that has access to a wide range of lenders so that you only need to apply once and they will come back with a range of options for you to choose from.

As a comparison with a hire purchase agreement, it will probably be slower but as tenant, you may get preferential terms with an unsecured loan depending on the interest rates for instance. It's always worth checking the small print though just to make sure. Another advantage of unsecured loans for tenants and tenant loans over hire purchase is the relative flexibility that you may get further down the line. If interest rates fall, you could think about consolidating your existing credit which may mean swapping your existing credit for a lower interest rate loan or perhaps to extend the term so that your monthly repayments are more manageable if circumstances were to change.

There are plenty of finance brokers on the web to enquire to so what are you waiting for? Happy hunting!

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