Today we are going to be looking at a personal loan for a car benefits and if this is the path that would work best for you.
How to pay for a car
I got a personal loan for my last car, a little white Nissan Micra, and I pay it off in monthly instalments. The reason I did this? I honestly cannot remember. Ha! That pretty rubbish for a money blogger like me isn’t it.
What about you? How do you finance your car?
I did a speedy survey of my peers to find out the buying a car savings or finance route they had taken.
I know people who save up (very few,) borrow money off family (slightly more) and then those who buy their cars on finance and those who take about a personal loan.
Personally, I would always, always suggest that you save up for anything if that is possible. But, I also know that cars are often bought because the old one breaks down irretrievably and often there is not the time to spare (plus they are expensive and it could take an age to save enough!)
So in regard to personal loans for buying a car lets take a look at the benefits and what else you may want to consider
No matter what kind of car you are hankering after, new or second hand you have a lot to consider when buying a car. In regard to taking out a personal loan for a car, you have to think about the amount you want to borrow, over what term you want to pay it back and the interest rate that applies.
Obviously, when considering a personal loan for a car benefits could allow you to get a new car quicker. Speed is a great benefit when it comes to personal loans. But, and this is vital, you do need to explore how much interest you’ll have to pay and how to make the repayments. So speed is useful but do be considered in your calculations.
You can get good interest rates on personal loans for cars, especially if you shop around. Tesco bank loans have a great low rate of 2.9% APR representative on loans from £7,500 – £25,000 for terms 1-5 years and this is so competitive. You have to do some research and find what works for you but there are some good deals to be had.
You have to think about the amount you want to borrow, over what term you want to pay it back and the interest rate that applies.
I’d urge you to be aware that although you can get instant decisions on your eligibility for loans you need to be thoughtful and thorough in considering your budget. Do take a look at this loan calculator to see how much you will actually be repaying
So there we go – a whistle-stop tour of personal loan for a car benefits, but that isn’t all you need to consider.
Other costs involved in buying a car
There are, of course, other costs involved in buying a car. You need to think about insurance and get this sorted immediately. you also need to consider road tax, MOT and maintenance costs and of course the cost of petrol. You need to be able to afford not only your car but allow for all of its care.
I do hope you have found this post on a personal loan for a car benefits to be useful. You might also like my post on how to find the right family car