Secured Car Loan - Affordable Finance for Buying a Car

By: Pamella Scott

Purchasing a car from your pocket simply means that it is going to put a stress on your existing finances. Hence, taking out ">secured car loan becomes inevitable for most of the people, as the loan involves overall low costs, making the repayment easy. However, it is only after assessing your circumstances and requirement that you should go for the loan.

You can buy a new or used car of any make and model through these loans. Its main advantage for the borrowers is low rate of interest. The rate is kept low mainly because of fewer risks for the lenders, as you borrow the money against a valued property that you have to pledge for collateral. If you do not want to put home at stake, then the lender can take deal papers of the very car you are going to buy, to take it as collateral.

You can drive the car, but the papers of the ownership will only be returned after the loan is fully paid back.

Apart from low rate, secured car loan is also meant for borrowing greater amount in the range of ?5000 to ?75000. The loan amount, however, will depend on value of collateral. The loan amount also will not exceed the current price of the car. So, first find out the car price. Repayment of the loan ranges from 36 months to 72 months.

You must also be prepared for making a down payment to the lender. In fact, the down payment can be used as a tool for not only assuring the approval but low rate of interest as well. What is more, if you make a good amount of down payment, the lenders will not only approve the loan for bad credit borrowers, who have host of problems like late payments, defaults, arrears and CCJs, but they can find the loan at low rate as well.

Apply for the rate quotes of the lenders, who are providing secured car loans. Compare the offers for low rates and terms-conditions. Note down the additional fee charges also to settle for a suitable deal. Make sure that the loan repayment is made on time.

Secured Loans
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