The perception of vehicle differs from person to person. Someone would prefer to have a high end car adoring their garages, while others may opt for an economical car, which consumes less gas and is easy on the pocket. It is true that every individual feels the need of a vehicle but the only stumbling block is the price factor. With global warming, car makers have to follow strict emission norms while manufacturing a car along with the safety issue. These factors make the car a highly expensive option. But then there are ways through which a person can purchase a car. In this regard, vehicle finance turns out to be of great assistance.
Vehicle finance, as the name refers can be used to purchase vehicle of any make or model, provided it is available with the lenders. The loans basically provided the monetary assistance, which then enables the applicant to purchase a car of his /her choice. Applicant can also utilize the finances to procure a second hand car, however it should not be older than 5- 6 years.
Through the finance, a borrower can derive 80-100% of the total amount required. But, prior to the availing of the finance, borrower should determine the model of the car. A brief visit of the various car dealers would assist the borrower to assess the price of the vehicle. This way, borrower will be able to borrow the exact amount required to purchase the car.
The finance is further classified in to secured and unsecured form. Secured form of the finance offers a bigger amount, but to avail it borrower has to pledge the car intended to purchase. Moreover, placing collateral eventually enables the borrower to derive the loans at comparatively low rates. Unsecured form of the finance is bereft of collateral pledging. A limited amount is approved on the basis of borrower’s income and repaying capability. These loans usually have short repayment tenure. Usually, it spans over a period of 5- 7 years.
Vehicle finance can be sourced from lenders present in both the traditional as well as online market. However to save time and grab the best loan deal, it is preferable to apply online.