Do you know that in the very first year, the value of a car depreciates by $1,500? Many people consider a car to be an investment while in reality, it is just an asset which will depreciate with time.
Apart from the financing costs, this so-called investment also requires to be maintained, repaired, and insured. Even the registration with the state hikes the cost manifold.The average interest rate of used and independent cars is 7.68% and 11.48% as compared to 5.11% for a new car.
As per Edmunds.com, in a course of five years, a $25,000 car will cost around $33,604, thus, making the loss higher. When the cost of the car is already going to be this high, why not try to save some money in the financing process?
What Does Choosing a Bank Mean?
Typically, banks offer lower rates as compared to private lenders but you will be able to get only 60 to 80 percent of the vehicle cost covered. The additional costs of registration etc. are also not included in it.
Also, the banks are never as flexible as a private leasing company. This is ideal for people who are looking for a standard term as this will help in completing the loan term steadily. However, those people who need certain flexibility should never opt for banks.
Irrespective of the amount requested, the banks will never initiate a loan unless they are provided with a strong financial package. They would need your credit history and complete details before they can even think of approving the loan for you.
Lastly, banks are slower in taking credit decisions so be prepared to wait even for weeks before your request is completely reviewed by them.
What Does Choosing a Private Financer Mean?
By the end of 2017, Americans owed $568.6 billion worth of car loans. With the average loan amount of new cars crossing $30,000, there needs a way to curb the situation and allow comfort to the people applying for such loans.
This is the reason that private lenders like 800LoanMart are gaining popularity because their system works in the favor of the customer. They even educate their clients to make the most appropriate decision given their current financial situation and other commitments.
Using the car itself as the collateral, the car title remains with the company as in the case of banks. As soon as you make the entire payment, the title is released to you. However, this doesn’t mean that 800LoanMart will snatch the car in case of a missed payment instead, they will help in making the right move and not let the customer lose their car.
The Bottom Line
Almost 8 out of 10 Americans are in debt so why not make life easier for yourself by choosing the most convenient loan options? A private financer will understand your situation and provide the best possible financing option. Thus, you will be able to get a decent car title loan without burdening yourself.