Car Finance Loans Compared to Dealership Loan Schemes | BEST ...

13th August 2011 Cat: REVIEWS with

Generally car loans are a very helpful type of loan indeed. In a lot of the instances people never buy cars for cash and instead opt for car finance loans as a way of securing funds for a car purchase. I mean, it would be a good thing for our environment if it was difficult to secure a car loan. But the reality is that credit providers and car dealerships are making it easier for people to purchase cars.

Car finance loans are normally granted by banks or other credit providers as personal loans. Approved car loans get forwarded by the bank to your chosen car dealer who in turn accepts payment without the car buyer making contact with a single cent. Under such circumstances repossession by a car dealer is a rare occurrence. But with showroom finance failing to make a single payment can result in the repossession of the car.

With personal loans it is more than possible to get a reduction on interest rates.

A reduction on interest rates generally occurs whenever you have a good credit score. A good credit score is an indication that you have been paying back all your present and previous loans and that you are less likely to forfeit payments than a person doing so.

But showroom financing rarely gives room for such discounts on interest. At the very most a discount will avail to you if you make a down payment on the car. Such a down payment is kind of like a deposit and generally it tells the dealership that you are going to pay back the rest of the amount.

Personal loans are generally free of scams and fraudulent activities. But dealership granted loans can be riddled by so many concealed charges that only surface after much introspection.

And the fact that such charges are minimal they might not appear dangerous until someone tells you about them.


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Source: http://www.best-consumer-finance.info/car-finance-loans-compared-to-dealership-loan-schemes.html

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