Pelham auto finance targets all the people who need assistance in funding the purchase of a vehicle. Most people do not have ready cash with which to buy a car. They therefore have to approach the financial institutions for assistance. This is where the company comes in.
The lenders are usually willing to finance whichever model you are targeting as long as you pass their credibility evaluation. But, most of the financers are usually reluctant to give out funds for buying used cars. Most of the loans involving the purchase of cars are secured. The car being bought is usually the collateral. The conditions that the financer gives to the client are that in case of default in the payment of loans their car will be reposed by the lender. They will then sell it in a bid to recover the money you owe them. Financers do not like repossessing cars because they do not have the knowledge required to sell cars. They will only do it as a last resort.
Those people with good credit history can purchase their cars using signature loans. The good thing about signature loans is that they are unsecured. You do not have to give up your new car as collateral. When giving out such loans, the financers are usually of the idea that you good credit is a sign that they can trust you to make your payments on time. The disadvantage of such loans is that their interest rate is on the higher side. Despite the high interest rate, the lender will not dictate the kind of car you should invest your loan on.
If your eyes are set on buying a classic or vintage car, you will have to settle for a secured loan. The only collateral that you can attach to a loan is an asset that is worth the value of the loan. If your dealer is selling you a car that is expensive, the financer will only cover the basic cost of the vehicle and you will be forced to come up with the difference. This only happens in the case of second-hand models.
The financer will require you to raise a percentage of the overall cost as down payment for the car. They use this as a tactic to keep the loan amounts lower. The policy is also based on the fact that the car will depreciate with the passing of time. A new car is more costly than an older one. Those with good credit history are not faced with the challenge of raising the down payment.