Money for the car
The new car, regardless of whether a comfortable family estate car or a small sports car, is a dream that at the moment is extremely easy to meet. When we do not have enough cash, the solution to this problem will be a car loan that we can get in any bank.
Car loan – definition
So far, the purchase of a car was most often financed from a typical cash loan. Currently, you can take advantage of a wide range of other banking products, specific loans, more advantageous than traditional forms of lending. When defining a car loan, one can say that it is a loan contracted solely for the purchase of a motor vehicle specified in the contract. This name does not apply only to passenger cars or delivery vans. This term also includes motorcycles, tractors and even motorboats. However, usually the funds obtained from the bank are used to purchase a car and you can buy both a new car and a used car from the so-called. second hand.
Car loan – advantages and disadvantages
The biggest advantage of a car loan is that the bank always lends us exactly the sum we need. However, these funds can not be used for any other purpose. A loan of this type is also much lower interest than a cash loan, but it is necessary to provide it with additional collateral required by the banks. Most often it is a transfer of ownership, vehicle card deposit, assignment of an AC policy or less frequently a blank promissory note. Another advantage of this method of financing is the long loan period, reaching even 10 years. This allows you to significantly reduce the monthly installment. The amount of the car loan is of course dependent on the client’s earnings, but often reaches several hundred thousand, which allows you to buy a truly luxurious vehicle.
Many drivers, however, are not advocating taking a high loan for a dream car or wanting to use a different, attractive way to finance it. Undoubtedly, this is a car leasing. The principle of its operation is extremely simple. A financial institution, a leasing company, buys a car indicated by the customer, becomes its owner, and the vehicle lends the customer a fixed monthly fee. For each month of use, invoice is of course issued. Car leasing is relatively easy to maintain. The company offering it does not put such requirements on the customer as most banks. Equally less complicated are the necessary procedures that must be completed by entering into a contract. In addition, leasing offers entrepreneurs numerous tax benefits, such as VAT settlements. At the end of the leasing period, you can buy a car at a pre-determined price or leave it at the leasing company.
Car loan calculator
However, before we decide to choose one of the two forms of financing the purchase of a car, it is worth checking out the costs that we will have to pay. To do this, you should use the car loan calculator. We find it, inter alia, on the websites of banks. Thanks to it, we quickly calculate how much it will pay to pay for the car. All you need to do is enter information such as price and type of vehicle, year of production, own contribution, currency, as well as loan period and additional options, eg loan insurance.