Monday, 11 January 2016

Car financing for Newbies - The Secured Loan

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!