Are you considering buying a new car and need to compare car finance options? Whether you are looking at buying your first car, upgrading, buying a business car or a classic vehicle, you will likely need financing to make this a reality.
As leading professionals in financing solutions, we look at what car financing is and reasons why you may need car financing today.
What Is Car Financing?
Are you ready to buy your new vehicle but don’t have the money to do so? This is where car financing comes in. Car financing or ‘taking out a loan for your car’ includes borrowing money from lenders such as banks, online lenders, finance companies and car dealerships. Once your loan is secured, you will pay it back in monthly instalments with interest until the loan is paid off.
Here are some car financing options available:
- Secured loan
Here the car is seen as the security for the loan, and therefore it has less risk and lower interest rates.
- Unsecured loan
An unsecured loan does not use the vehicle as collateral and can therefore be seen as riskier. Because of this, interest rates will be higher.
These loans have more flexible repayment options depending on the cash flow of the business. Repayments can be structured or balloon payments.
- Novated leasing
Novated leasing is a loan option that is available if your employer offers a car allowance. These repayments are paid directly to the bank, which can reduce your taxable income.
Why Should You Consider Car Financing?
- You Won’t Need To Pay Upfront
If you choose to finance your car, you will have access without paying upfront for it. Instead of paying one large payment, you can pay monthly instalments impacted by the initial deposit, interest rate and loan period.
- You Can Compare Car Finance To Find What Suits You Best
It is always best to shop around and compare car finance options to find what suits you best. iCREDIT offers car financing solutions that are made to suit your budget and lifestyle. Choose car finance solutions that have low-interest rates, flexible payment options or business use options. Contact our dedicated consultants to find a car finance solution that best suits you today.