Even a used car can make a severe dent in your bank balance, which is why many people opt to apply for a car loan to pay for their purchase. But quite apart from the fact that car finance enables you to keep your savings where they belong - namely in your pocket - it also has several other advantages over a cash transaction.
Firstly, it enables you to buy a better car than you could otherwise afford. Trying to save money by buying an older model can result in more costly repairs being needed, which all amounts to a false economy in the long run. Taking out a car loan also means you can spread the cost over a longer period of time, which in turn makes your car much easier to pay for - and you will always know where you stand with your monthly payments. You'll also know exactly how long you'll be paying the loan for until it's completed.
If the car credit you get is either unsecured or secured on the car itself, it's a very low risk option - much more attractive than a secured loan, which could put your home at risk should you default on payments.
Car finance is often also easier to successfully apply for than a standard bank loan. Many people who have bad credit problems are still able to get a car loan and if you are unable to buy a car in any other way then yes car credit could change your life. Becoming more mobile could enable you to apply for better jobs further afield, for example.
Another key benefit of opting for car credit to buy your new motor is that whatever APR you get, it will often be fixed for the length of the loan term. This takes away the worry of wondering how high your repayments could go if interest rates go up, as you will be unaffected. It means you can have more confidence in taking out this kind of loan than another loan which doesn't have a fixed repayment amount each month.
Car credit is also better than a standard loan as it often comes with added perks. For example, if you buy your car from the same company that provides you with the loan, they may add in six month's free road tax or a full vehicle inspection before you drive the car home. These give the loan added value that you wouldn't be able to get elsewhere.
So if you are considering buying a new car, opting for car credit to make it possible could well be your best choice. Not only can it bring added benefits, but you'll always know exactly where you stand.
