Buying your first car can be a thrilling experience; it is always a dream for every body to own their own car, the financing however at times proves to be a major hurdle in the whole process. Most cars will average about $20,000 when new and half that amount when used for a period of about four years, these amounts still prove too much to pay at one go for many people and therefore leads to the need of a financial partner to assist in the purchase of the car.
There are many ways of paying for your car whether new or used. Some car dealers can give their clients the option of small payments in installments over a long time to help them own the car from their yards while others can also make plans for an entirely different financing company to help in the payment of the car as long as the client and the dealer are both in agreement on the terms and the price of the car.
When looking for a financial institution to help me in financing may car there are important factors that I have to take into consideration. The most important one is the interest rates charged on the financing plan and the period within which I have to service the loan. Direct lending is one of the methods I would mostly consider since it is likely to much softer on me taking into consideration the fact that the car dealers may at times have higher interest rates. Direct lending would give the peace of mind that I do not have to worry about the rates that their hire purchase terms would dictate on me.
In the direct lending system, the car dealership and the lending institution that I choose to finance my car purchase come into terms with my approval and then the lending company pays the car dealer the full amount of the car leaving me as the buyer with the financer’s loan to service at agreed rates of interest and within the agreed time frame.
There are many advantages of these options of financing that would make me choose any of them. The choice will mostly be determined by my conditions at the time. If I do not have enough cash to buy the car at one go, I might have to look for one of the financing options to meet my car’s financing.