January 12, 2018 admin

1. Standard loan (bank, credit union, etc)

The financier lends the customer the money to buy a new or used vehicle. It is the simplest of loans but you need to be financially sound and prepared for some extra expenses. It can be secured or unsecured (higher interest rate). The vehicle is the security for the loan so the financier will demand it be fully insured.

UPSIDE

  • Finance can include on-road costs.
  • Agreed monthly payments over agreed time period.
  • Low fixed or variable interest rate because finance is secured against the car.
  • Flexible terms for time and repayments.