Nowadays, there are many options available to people looking to finance a new vehicle, with one of these being a personal loan.How does using a personal loan for car finance work?
Applying for a personal loan can be a simple process and here at Carfinance247 we have access to a number of lenders who can offer you a personal loan at a competitive rate.
Following the approval of your application, you can then use the loan to finance your new car as well as, for example, paying for your insurance and road tax. In some instances, the loan provider will pay the money straight to the car dealer or manufacturer that you are buying the vehicle from.How is a personal loan different to other car loan options?
Generally speaking a car finance loan and personal loan work in pretty much the same way. We provide a variety of options regarding finance, with these options varying in suitability for each consumer.
A personal loan is not secured against the car, so if you fail to keep up with the repayments your car can’t be repossessed. This also means that, unlike some financing options, you can sell the vehicle on at any time during the loan agreement. You do, of course, need to keep up with your loan repayments as you still have the debt – unless you use the funds from the sale to repay the loan early.
So whilst other car loan options may not be available to you or may not suit your circumstances, you may find that a personal loan plan provides a solution.Who may it be suitable for?
A personal loan tends to suitable for those in full time employment, who have a good credit history and had few or no previous financial problems such as missed mortgage payments, defaults or county court judgements (CCJs).Finally …
All options should be considered if you are thinking about buying a new or used car. This is where out professional and knowledgeable advisors come in to play as they will tailor the most suitable finance package to your needs. After all, a loan is a commitment, so together we need to make sure that we find the most suitable choice for you.