Car financing is one of the most trusted available options for getting a car. There are several reasons why this option has been taken up in recent times. First, if you need a car but you don’t have the full car price, car financing is a great place to look. Here, you will need a veritable finance scheme enabling you to access a loan and repayment over a stated period of time. This is how to get a car without exhausting your life savings. But more specifically, this is why car dealerships like Jaffa Books exist. To walk you through the complexities of financing your car and offering you maximum value in the end.
Majority of the car owners we see got their cars by way of car financing schemes. The tested ways to go about car financing could be through some third party financier, among others. Below are the key points to note when it comes to car finance.
Car Loan and Lease
Car loan and car lease are two common but different ways of financing your car needs. They operate differently, as such, the option that will satisfy your needs depends on your reason for the choice of car. Typically, car loan rates are moderate. Here is the defining factor that sets car loans apart from other convention loans in banks.
More so, unlike car loans, bank loans are rigid to access, and not to mention the huge interest rates involved. What then happens is that these loans end up not satisfying the needs of the borrower. On the contract, they end up creating for cost than the borrower has bargained for. Here is also where third party car financiers differ as they offer lesser car loan rates. The loans are capped in a way that they will stay moderate.
In addition, you get to repay any amount lent to you over a period agreed between you and the third financier. In deciding the period you have to pay, the car financier takes your needs and peculiarities into consideration. This is to ensure you’re not too burdened with struggling or having to repay back. This is why most people get their cars through car financing schemes. These schemes allow them enough latitude of freedom to choose the car they desire and make payments at their convenience.
Be that as it may, a car lease is another great option to try, especially if it’s not your intention to own that particular car for too long. This way, you can use the car during the pendency of the lease agreement. You have full possessory rights over the car, as you can then drive it anywhere and anytime. Once the agreement lapses, you have to return the car and you would no longer have possessory rights. Certain rules operate to guide car lease agreements that make it different from car loan agreements.
First, car loans give ownership. This means that you have an aut0matic option to buy the car. Here, the capital to get the car in the first place will come from the financier. The car financier puts some factors into consideration. The financier will make an evaluation of the car market price, so as to determine the exact money of money to loan out to you. This is the amount you will pay over a given period of time.
In this case, the car stays with you after you’ve purchased it from a dealer. However, you don’t own the car just yet. Ownership of the car only passes to you immediately you pay the financier all the outstanding amount borrowed. There are no restrictions regarding how to use a car obtained under a loan. This is unlike what obtains under a car lease where the lessee must return the car in the exact condition in which it was picked up.
Car finance is a great way to service your car needs. When you take this financing option, our team will be happy to come in to collaborate and provide you with bespoke and convenient repayment periods.
Our experts are ever ready to provide tailor-fit advice, specifically designed to meet your needs. This is because, at Jaffa Books, it is our belief that your car needs cannot be solved with a universal approach.
Car Finance Calculator
Calculating the cost incurred under car finance schemes is an important exercise. This is the case where especially when the loan is due to be repaid. This is here a car finance calculator comes in. It allows you do this, while taking into cognizance market rates and monies to repay. Car finance calculators are designed to reflect market inputs and factors. These calculators help us keep due payment and necessary costs in check.
So, if you want to stay abreast of schedules for repayment, it is important that you get a finance calculator. They not only help you keep track of payment, they also pre-calculate costs. The calculators help to prevent surprises and keep you in tune with relevant information regarding your car financing agreement. People often enter into loan agreements without running adequate checks on the procedure, interest rates and others.
A calculation will help you realize the capital, interest rates and other possible suggestions on repaying your loans. This helps you confirm the strength of your credit. This is because financiers do not loan money unless you’ve satisfied them that you can pay the amount of money you require.
Budgeting is the core of personal finance. Before you get that car you desire, it is important to ask questions such as, why that kind of car, and what range of cars can your budget cover. These questions are important to making smart finance decisions. This is because there are certain factors a financial institution will consider before agreeing to give you a loan.
Loan amount: This is the amount you’re borrowing from the financial institution. This will be considered with respect to your security and credit rating. This credit rating shows the financial institution that you’ve been faithful to your financial obligations. The car you want to buy will also be weighed against your credit rating to confirm whether you’re a good fit. It’s important that you try to cover any possible gaps that can give you.
So, know your credit rating and make moves to cover any gaps that will give you a low credit rating.
Interest rate: This is the rate charged by the financier over the repayment period. A higher repayment period attracts a higher interest rate, and vice versa.
Repayment Period: This is the period of repaying the money lent. It is important that you negotiate convenient repayment periods. We have partner institutions ready to offer you fair repayment options.
Use a Broker: Brokers are car experts with wealth of experience to help you negotiate a fair car deal. They take away the stress of sorting and negotiating the best car deals.