Latest Mortgage Rates

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A person has many options when buying your own vehicle, either new or second hand. There are different payment methods, offers, dealerships and models, each with its advantages and disadvantages. With regard to vehicle financing, the current crisis has led to initiatives such as PLAN PIVE, which seeks to encourage the purchase of vehicles. But it has also made the requests for so-called car loans grow , that is, the loans that are destined to the purchase of a vehicle. What advice should we follow when requesting a loan for the purchase of the car?

Assess your real needs

Do you really need to buy a vehicle? The purchase of a car is not a whim; It is a very important outlay of money that must be made in case of maximum need. Of this type can be the needs of security (you have had twins and your car has left you small and insecure) or work (you work daily with your vehicle and it is already for scrapping). Requesting a car loan for a whim is the same as asking for any type of loan to spend it on a good of third necessity: an irresponsibility and a way to compromise your economy in the medium term.

Budget available

Before asking for a loan for the purchase of your car you must prepare a budget in which you break down your economic situation and the amount you are able to allocate to your car. Being a loan that you will have to pay during a certain time, you must make sure that your future income will allow you to face the repayment of said loan. Knowing your budget also allows you to assess the option of paying an entry and thus reduce the car loan to apply for. And, of course, you should bear in mind that when buying a car, the vehicle transaction is not the only expense you will have to face: registration, insurance, road tax …

Model to choose

If you have enough money to buy the car model you want, it is that you do not need to request a loan for the purchase of your vehicle. It is assumed that if you are going to ask for a car loan it is precisely because you need to buy a car but you do not have enough liquid at that moment. For that reason, because you never know what the future may hold, it is advisable that you opt for a car model that falls within your real possibilities. Everyone would like to have an Audi A8, but you may have to settle for a familiar Hyundai. In addition, it is possible that many entities do not finance the purchase of your vehicle if the chosen vehicle is far from your financial possibilities.

Study different entities

Today there are many banks, savings banks and financial institutions that offer loans for the purchase of your vehicle, such as Cofidis, Cajasur, Banco Caminos or BBVA, among many others. Know the financing options, the interest rates and the terms offered by each one and choose the option that best suits your needs.

Other options

There are other options besides asking for a car loan. For example, if you are going to buy a used car at a very good price, it may be more advisable to ask for a quick loan. Remember that asking for a loan or a loan of whatever kind means having to pay for your return, and with interest. So if you are going to ask for a car loan, make sure it is absolutely indispensable and that you can return it.

Categories: CAR LOANS

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