Are you shopping around for a new car? If yes, you might surely be thinking about getting a ‘car loan’ or a ‘personal loan’. So, if you’re willing to get a used for a car too for other intents and purposes, you can. However, many people get confused between two very selective options: getting cheap car loans or looking for personal loans. By loan, we can ensure that both kinds of loans are ‘secure’.
If you’re stuck in a similar situation, then this article is just for you. Here, we’re going to look at all the pros and cons of car loans and personal loans. Let’s see which is the best option for purchasing your next car.
Here are the pros and cons of cheap cars with finance.
Pros
- Lower interest rate: A secured car loan can very well attract any buyer who is interested in getting a cheap car loan. However, your loan would be secured against the vehicle. Thus, in the case you default on your payments, the debt collector can seize your vehicle, in this case, your car.
- Can borrow from reputable lenders: many institutions can offer you some secured car loans. Many reputable lenders too can help you through the process.
- Borrow a larger sum: some lenders can offer you a large sum of loans as well. This amount can go as high as $100,000.
Cons
- Gets you more restrictions while purchasing: many secured car loans can help you get your favourite choice of car, but a few limitations can stop you from choosing the kind of vehicle you want.
Personal loan
Here are the pros and cons of personal loans.
Pros
- Best to get older car models: a personal loan could be helpful if you want to purchase a vintage car. With this type of loan, you get more flexibility. However, as a customer, you need to be sure about the terms and conditions in the contract.
Cons
- Higher interest rates: one of the biggest cons of getting a personal loan is that you have to pay a much higher interest rate than any other secured car loan. It isn’t uncommon, but the amount of interest is definitely subjective to the lender you’re choosing.
- You get smaller amounts of loans: Depending on the purpose of the loan, your personal loan can have a maximum limit of only $10,000. Well, such a small amount cannot get you very far on buying a new car.
Rent-to-own cars
Now that you are aware of all the pros and cons of cheap car loans and personal loans what if someone gave you another way to drive your own vehicle without much pain? Well, nothing to be surprised of. There is something called rent-to-own. If you cannot afford to buy one with cash or your bad credit is limiting your choices, you can opt for Freedom Cars rent-to-own services.
At Freedom Cars you get thousands of options to choose from at deals that you can never deny. They have locations all over Australia. So, go book an appointment today and get the freedom to drive your own vehicle.
Source URL: https://www.freedomcars.com.au/
