The market practice is typically to charge what is known and acknowledged, however as a prospective borrower of a car loan, it is necessary for you to understand, comprehend and contemplate before you take it. The amount of financing that you need for your car may vary in different cases. Money lenders often discuss these terms with you, yet let us have a look over it:
Given the fact that the prices of cars is relatively high in Singapore and that it is the most expensive country in the world, one might want to take loan to get a car. As a buyer, if you are unable to pay the full amount of car in one go, you can always finance it for your respite. The initial methods of financing begins from
The initial methods of financing begins from
01 Absolute Finance / Down payments
The latest rules and regulations of financing have disabled the choice of having it full finance. A borrower will be open to the services of finance only when he manages to fund close to 30-40% of the total amount. Since full finance is not available, this amount on the total car value has to be managed by the borrower; of course there are many ways to do that if you do not have the amount.
02 Linear Loan Type
A flat percentage that seem to be charged on the amount is what given under linear loan. Most companies offer this as this is easy and simple to procure. Since this has no extensions and negotiations, a few may end up paying as much as 25% of the total loaning amount, in the name of interest. Some lenders offer services where you will be entitle to pay only a few % of the outstanding loaning amount. Thence, the amount would vary every month / year.
Furthermore, the demarcation is done on the basis of car, such as loans for a new car, loans for a pre-owned car and the last one is against some car. Customers have full authority to swing for any loan type. When the choice between taking a car loan arises, usually the one with flexible installments are taken more. The loan against a car is a little tricky since the lender is liable to take the control of the car, if you are unable to repay the amount taken on loan.
One can start by visiting money lenders or banks and checking with the interest rate trends in the market for loans. As a prospective borrower, you will have to ensure that the amount you have taken is adhering with the regional / international trends and that you are not fooled. The challenges are taking a loan are always surrounded by the opportunities in it.
On proper scrutiny and judgment it is very easy to procure loan. The basic design of loan is to help a customer and encourage purchasing, thence do not hesitate or desist if you have any qualms regarding the procedure or process.