What loan should I choose to buy a car?
Buying a vehicle is an expense that can rarely be covered by the savings you have. For those seeking financial support, banks offer car loans tailored to this specific purpose. However, it turns out that the purchase of the vehicle can also be carried out with a standard cash loan.
Each of these solutions has advantages and disadvantages, so it is difficult to clearly determine which option is better. Let’s see how the car loan differs from its cash counterpart.
Car loan – an intentional commitment to buy a vehicle
A car loan is a solution that allows you to finance the purchase of a vehicle. The name itself can be misleading, because with its help we can also acquire, among others motorcycle, quad, truck, caravan, and even a motorbike. Car loans allow you to buy both a new and used vehicle, coming from the salon, from a natural person, or even from abroad. A feature distinguishing this solution from the cash equivalent is an additional security on the vehicle being credited, most often in the form of:
- registered pledge
- security features
- assignment to the bank from the AC policy
- deposit When will the bank return the stolen money from the card?
The need to establish additional security means more formality, but taking the effort to gather a longer list of documents can be reflected in a more attractive price. It should be remembered that this is not a certainty, because in conditions of increased competition it is possible that a cash loan may prove to be a cheaper solution. Especially when it is granted on promotional terms.
Being aware of the price range between bids for the same period and amount, it is important that before making a decision, comparing available options and conducting a “bid competition”, starting with the proposal made by the bank that keeps our main account. It is worth paying attention to such parameters as nominal interest rate, commission, amount of the monthly installment, APRC or the total amount to be repaid. One of the helpful solutions can be a car loan from finance.rankomat.pl. The ranking and comparison service available on the website can help you make the right choice.
Cash loan – for any purpose (including vehicle)
By choosing a cash loan at the bank, the applicant is given the option of spending the funds received for any consumption purpose. A financial institution is rarely interested in what the loan will be used for. This solution will be appreciated by people who value simplified procedures and quick decision-making. The borrower buying a vehicle for the funds from the loan does not have to submit any documents related to the subject of financing to the bank. His obligations are limited to repayment of subsequent installments on the agreed dates.
As in the case of car loans, the decision should be preceded by an analysis of the offers available on the market. It is worth starting the search with the bank that maintains our main account – in such a situation, the creditworthiness analysis is often based on the account history. As a result, the borrower does not have to submit documents confirming income, which means that the loan is available immediately. Of course, the offer should be compared with the proposals of other banks, which may open the way to negotiate the original terms of financing.
Cash or car loan – what should you choose?
There is no definitive answer to this question, because each solution offers different added values. People still evaluate offers mainly from the angle of price, but a group of people ready to pay more grows, in exchange for greater freedom in spending funds and simpler credit procedures. Regardless of your preferences, it is worth the effort to reliably compare offers. It may turn out that the simpler option is also the same.