Car Loan

Financing a vehicle, tourism or industrial, no ceases to be a variant of the loan for consumption. However the funding of this type of goods presents particular characteristics, so they have turned it into a new product, called loan car. Loan for purchase of new or used vehicle, is one of the most demanded financial institutions. High trading volume allows them to offer special conditions. The loan for the acquisition of vehicles usually have with interest rates lower than the traditional consumer credit.

Besides repayment terms can be made wider, in practice there are entities that offer deadline rules 6 and 7 years and some extend it until age 10. Alongside the traditional credits to finance these acquisitions, have appeared some new financial products. Such is the case of so-called partial funding, lower term. Is finance a vehicle for a certain price, for example 22.00, but not for the full amount, but on the one hand, e.g. 12,000, in the short term, for example 3 years.

In this way they would have funded not be paid 10,000 who should assume residual value which would have the vehicle within a period of 3 years, for which the loan was concluded. These forms of loans are trying to attack the large depreciation of value that suffer cars, at the time that make possible the change of vehicle, in small periods of time. Actually what has been paying has been a lease, a lease for the use of the vehicle, since the consumer fails to be the owner of the vehicle. Is true that many entities, completed the initial term, for which the life of the loan was concluded offered the possibility the consumer return it, or to purchase, by the residual price agreed. It is possible to get additional funding for disbursement of this second option. But in practice is not common use well before the alternative of having to return to arrange a loan, the user usually opt to finance a different vehicle. Another novelty that many banks offer is the possibility of including in the capital of the mortgage loan request, the amount required to finance the acquisition of a new vehicle. In this case the interests are much lower, but it should be noted that given that repayment of the mortgage loan terms tend to be long, it will be long time paying the car, practically will have to purchase another before the end of the life of the loan. However if the loan is well calculated it is possible quotas to be small and in this way has funded, by the differences of interests, successfully the acquisition of the vehicle.

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