We take a look at the secured loan and
how it can help you finance your new or used car!
How it works - A secured loan is carried
out by putting up an asset, normally the car itself, as collateral so that the
lender has an assurance of your commitment to the contract. If the borrower
defaults or misses payments, the lender has the right to repossess the car as
payment instead.
Pros - Because of the collateral that
you’ve put up, lenders are appeased enough that their “investment” in you will
be returned and that you won’t miss your payments. You are likely to be able to
borrow a bigger fum of money with lower interest rates. Tax deductions, both
for sales and for businesses, also apply.
Cons - There is a chance that your
collateral or the car itself might get taken away by the lender if you are
unable to make payments.
Car financing for Newbies - The Secured Loan
You can work out how
to make sure that a secured loan is affordable for you by contacting The
Smarter Finance Company!
Car financing for Newbies - The Secured Loan
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