To buy the dream car, those who do not have cash, banks offer a number of loans that can be used for this purpose.
Their undoubted advantage is low interest rate. It results from the fact that the loan taken is secured just for the car that the borrower buys, which means that the bank’s risk of financing is reduced.
The best known is car loan
If the person taking the loan stops repaying it at some point, the bank has the right to take over the vehicle and then sell it.
Unfortunately, such a loan has its drawbacks. A person applying for a car loan must have their own contribution. However, now banks often deviate from this requirement when the money from the loan is used to buy a new vehicle. Own contribution, which ranges from 10 to 30 percent. the value of the vehicle is required when buying used cars on credit .
Increasingly, banks also offer very attractive cash loans
Which can also be used to buy your dream car. They are the best and sometimes the only solution in the case when we make a purchase on the car market or abroad, i.e. in cases where we quickly need cash.
There is no time to settle the formalities needed to obtain a car loan. Unfortunately, the disadvantage of cash loans is their quite high interest rate .
Another solution may be to take a mixed loan
Cash and car – which is offered by few banks. It consists in the fact that initially the bank grants a typical cash loan, so you can buy a car anywhere.
Then the borrower has 120 days to establish collateral typical for a car loan (e.g. registered pledge). Eventually, the cash loan changes to a car loan, which reduces the monthly installment.
The last solution is a mortgage loan , the cheapest, but with the longest loan procedure, loan product.