Do you have a new car in mind? Buying a car is often a big expense. If you do not have enough money to pay for the car in one go, but still want to enjoy using a car, a car loan offers a solution. Read more about the options for privately financing your car.
Method of private car financing
You can finance your car privately in various ways. For example, on installment at the dealer, borrow money for cars at the bank or lease. Whatever you choose, your chosen car financing must suit you. And not paying unnecessarily much for it would also be nice. We list the advantages and disadvantages of the different options for you.
Choose the car loan that suits you
You have two options for taking out a car loan: a personal payday loan or a revolving credit. With a personal payday loan you know exactly where you stand: both the term and the interest are fixed in advance. The advantage is that the car is really yours. Extra repayment without penalty is often possible. In principle, a revolving credit has no fixed term. You only pay interest on the amount withdrawn. With a revolving credit you can withdraw the repaid amount. A revolving credit is especially suitable if you need more spending room for a longer period.
This option is less suitable for a car loan because of the economic life of the car.
Finance a car through a dealer
A car loan through the dealer often sounds attractive. Paying on installments and deals such as ‘buy now and pay in five years’ sound great, but always come out expensive. Often there is a snag. Either you pay a high interest, or the term is a lot longer. Whatever the snag looks like, the fact remains that you are often more expensive. Moreover, the car is only yours when the car loan is paid off. Is this not possible? Then you will have to return the car. Not the most ideal way to finance your car.
Financing your car with a private lease also entails some disadvantages. First of all, the car is not really yours. You return it after the lease period. And if you want to get rid of the contract in the meantime, it will cost you a lot of money. In addition, insurers are not obliged to take over the claim-free years accumulated during the lease period. If they do, then this will only be a maximum of three damage-free years. The rest is canceled. You then profit less or not even from a no-claim discount.
That is why, in our opinion, financing your car through a personal payday loan has the most advantages.
Take out a car loan now