Mar 18, 2010
Buying your new car with Car Finance or Personal Finance?
Want a new car but don’t know where to get the money from? If you have a good credit history and can keep up the monthly repayment. Personal Finance is for you.
Personal finance is where you take it out from your bank. The bank just transfers the money to you when you have been approved for personal loans. If you can’t keep up the monthly repayment, you will get a letter from the bank and they will take you to court, give you a bad credit history, defaults.
A personal loan is like taking finance out on you. But personal loans sometimes are lower rate than car finance companies. But if you had a bad credit history, you won’t get a personal loan.
Car finance companies check the person’s credit history first. If you have a bad car credit history, you will still be able to apply for car credit from car finance. If it has been approved, car loans companies will credit the car dealer or the dealership that you purchased the car from. The dealership will release the car to the customer once the car finance company pays them.
Car loans companies will lend credit to people with bad credit history because if the person who took the loans out and didn’t keep up the monthly repayment, the finance or the lender will take the car back and give you a defaults or a bad credit rating.
Usually the car loans companies will have a lower rate than a personal loan because they can repossess your car.
Both Personal finance and car finance offers payment protection insurance, they are car loans protection. They protect you from disability cover to full unemployment.
