Personal Car Loans
There are three types of personal car finance loans, usually secured loans offered to buyers in Australia. The loans offered for
- bikes and
The primary benefit of opting for a secured loan includes lower interest rates as compared to unsecured loans.
The process of opting for a secured loan is to keep an object or cash with the lender as deposit against the car which you want to purchase. When the loan is paid for in full and when the lender has received his payment from you as per the agreement, your deposit will be returned to you without any deductions being made.
In case, you cannot pay the loan amount in full or default, then your deposit may be confiscated until further payment arrangements are made between you and the lender.
Unsecured loans have a higher interest rate however; these types of loans are versatile and have a unique set of benefits.
For instance, unsecured loans can be taken against a variety of products and services such as but not limited to debt consolidation services, personal purposes, purchasing boats and other items.
Unsecured loans are usually offered to people who either do not want to keep a deposit with the lender or do not qualify the requirements for secured loans. Loans that are given without any deposit are only given in some areas and usually buyers with a good credit rating can enjoy these loans.
Buyers who have a history of non-payment or defaulting will most likely have to opt for secured loans.
The best way to ensure that you get secured or unsecured car purchase loans is to make repayments for existing loans on time and opt for financial services such as debt consolidation. These steps can help improve your credit history which can in turn help you get a lower interest car purchase loan from a reputed lender.