If you’re looking to obtain a car loan for a new or used vehicle, there are a few things you can do to make the process easier on yourself. Here are five ways you can finance your next car:
1. Get a loan from a bank or credit union
If you have good credit, you may be able to get a low-interest loan from a bank or credit union. The downside is that you’ll need to make monthly payments, and the interest can add up over time.
2. Use a personal loan
If you don’t have good credit, or if you want to avoid monthly payments, you can use a personal loan to finance your car. The interest rates on personal loans are usually higher than auto loans, but you can get a lower rate if you have good credit. Benefits of using a personal loan include no monthly payments and the ability to pay off the loan early without penalty.
3. Use a home equity loan
If you own a home, you can use a home equity loan to finance your car. The interest rate on a home equity loan is usually lower than the rate on a personal loan.
4. Get a lease
If you’re not interested in owning a car, you can get a lease. With a lease, you make monthly payments for the use of the car. At the end of the lease, you can return the car or buy it.
5. Use a dealer’s financing
If you’re buying a car from a dealer, you may be able to get financing through the dealer. The interest rate on dealer financing is usually higher than the rate on a bank loan, but you may be able to negotiate a lower rate.
Financing your next car doesn’t have to be difficult. There are a number of ways you can finance a new or used vehicle, and each has its own benefits. We’ve outlined five of the best ways to finance your next car, so you can choose the option that’s right for you. If you’re looking for help getting a car loan, Driva can help, with a range of finance options for all types of Aussies including car loans for casual employment.