Used car financing: How it works?
jordan maggie Auto financing is the preferred form of purchase by consumers. Let’s find out how it works, When you are preparing to buy a car, whether new or used, the most popular payment method is that of financing. The market offers many possibilities for this car purchase formula, but it is essential to know all the details to understand in house auto financing singapore.
Despite the credit crunch in place for several years now, the car market has always kept the door to financing open to allow an increasing number of customers to be able to buy the car of their dreams and thus not lose important shares. The car loan is defined as an alternative payment system that provides for the total repayment of the car amount plus some interest through convenient monthly installments.
The forms of financing
A first form of financing for the purchase of a car is a personal loan. In this case, it is necessary to contact an external company which, once the debtor’s solvency has been positively assessed, will disburse the requested sum of money which must then be repaid in monthly installments.
The finalized loan, on the other hand, is disbursed directly by the concessionaire which will not pay the entire sum requested but will grant the asset to the applicant upon payment of the monthly installments.
A lesser known form of financing than those illustrated so far is the assignment of the fifth of the salary , or pension, for which the installments of the loan will not have to be paid monthly, but these will be deducted directly from the paycheck or pension slip. up to a maximum of one fifth of the salary or pension. Finally we have the leasing. This, technically, is a financial lease agreement with which the leasing company (grantor) makes available to its customer (user) a movable or immovable property, instrumental to his / her business activity, upon payment of a periodic fee.
The loan application is no longer used only for the purchase of a new car, but also for used cars.
In this case , attention must be paid to the main difference with respect to the hypothesis of purchasing a new car, that is the maximum limit of the payable sum.
This, in fact, is established on the basis of the real value of the used car which must be established on the basis of the indications of the dedicated price lists or through an inspection by an expert. If the purchase of the used car is made by a private individual, it is clear that you will have to contact a financial institution to obtain the loan and you will have to take into account the possibility that the interest rates applied are slightly higher than those envisaged. for a targeted loan.