Which Car Loan You Should Pick
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If you’re looking at car loans, you might be wondering which loan you should pick. That will depend on a few factors, such as your credit history, your budget and ability to make repayments and any security that you might be able to use.
There are many car loans available to choose from, such as secured loans, bad credit loans and guarantor loans, but choosing the right one can be difficult. However, Tiger Finance can make finding the right loan easy.
Read on below to find out more about the different types of car loans.
Which car loan you should pick
Which car loan you should pick is dependent on your situation. There are many different car loans available, and before deciding, you should make sure that you have explored all of the different types.
Which loan is right for you may depend on your repayment ability, your credit history and score, and whether or not you have any assets that you can use as security. The loan that you can be approved for may depend on these factors.
Types of car loans
There are many different car loans to choose from. Some of these loans may include:
- Specialist bad credit loans – Bad credit loans are designed for people who have struggled financially in the past. Intended to help people with bad credit, anyone who has any type of bad credit can generally apply for a bad credit loan. Bad credit loans differ from standard loans in that they are targeted to help those who have experienced bad credit or bankruptcy. Those who have experienced these financial troubles can often find it difficult to be approved for a loan and may find a bad credit loan helpful.
- Guarantor car loans – Applicants who might not be eligible for a car loan may have a better chance of approved if they have a guarantor on their loan. The person who acts as a guarantor then becomes responsible to pay back the loan if the borrower defaults. This type of loan is less risky for the lender, as most of the risk rests with the guarantor.
- Secured and unsecured loans – Generally, the most common type of car loan is a secured loan. The interest rates on secured car loans are usually fixed, which means that your repayment amounts will stay the same throughout the term of your loan. Usually, the car being purchased often becomes security for the loan. If for some reason, you fail to repay the loan, your lender can sell the secured car to recover the unpaid funds.
Benefits of a car loan
- Purchase a car sooner – Probably the best benefit of a car loan is that you are able to purchase the car without having to pay the whole amount outright. This means that you won’t need to save up the full amount and that you can get the car you’ve been wanting sooner rather than later.
- Helping your credit history – A car loan may also assist in building and repairing your credit history. As long as you pay your repayments on time you may see your credit score increase.
- Tax deductions – If you are purchasing the car for business use, the interest payable as well as running costs of the car could potentially be tax-deductible.
- You can spend the cash on other important things – Spending a large, lump sum of cash upfront on a car may not always be an option, especially if you need to use your savings for something else. Getting a car loan means that you can use that cash for other things, while still getting that car you’ve been wanting.
Where does Tiger Finance come in?
To us, finding you the right loan is important. We have helped countless Australians with both good and bad credit ratings to be funded for their dream car. We can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.
How we can help
Tiger Finance is here to find you the perfect car loan. We can make the process simple and pain-free with our same day approval process. If you’re ready to drive away in your new car, call us today for your free initial consultation with one of our loan specialists.
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