Dream of buying a classy four-wheeler, perhaps, the Land Rover Defender?
Well, hitting your bucket list becomes easier if you have sound financial planning to back it up. Through this article, we will discuss a few ways through which you can finance the car of your dreams, whether it’s a Land Rover or a Honda Civic!
Dip Into Your Savings
A car is definitely something that every car enthusiast saves for. If you are in a position to finance your car with cash savings, then you’re definitely one of the lucky ones. This is a great option not only because you own the car in your name right away but also because letting a large sum of cash sit idle in this economy is probably not a wise choice. However, make sure that while paying for the car, you are not dipping into the saving funds that are meant to serve as your buffer.
If you have a good credit history, you can always apply for a personal loan to finance your car. This is a cheap and reliable option that makes it possible for you to buy the car of your dreams. With just a little effort, you can arrange a personal loan with considerable value. It isn’t wise to only depend on the financing plans that the car dealership offers. Go ahead and explore a bank or an independent lending firm to see what options you can choose from.
Personal Lease Plans
Personal lease plans are pretty simple to follow. You agree on a certain fixed time period and pay installments each month. This allows you to decide based on your monthly budget, making it easy for the process to go on side by side. However, a downside of personal lease plans is that the car would not be in your name until the lease term is over. Moreover, you do have to provide a substantial deposit amount before the lease begins.
Other than personal loans, there are many car loans available that offer tons of benefits and features. Car loans generally have a lower interest rate compared to other financing options such as home or personal loans. Most banks let you take up to seven years when it comes to paying off your car loan.
Additionally, car loans are processed much quicker and come with little documentation. This makes car loans hassle-free for people who want to choose this financing option for their cars. Other than this, car loans also save your savings as you no longer have to hurt your savings buffer to finance the vehicle you are trying to buy.
Buying your first car or a car that you’ve only dreamed of is a very special occasion. Amidst the excitement, it is important to be smart about your financial decisions. Therefore, keep your credit score in mind and ensure that all your debts are paid before you walk into another lease or loan for your dream car.
Good luck & Happy Driving!
Biswajit Rakshit is a professional blogger and writer. He loves to write on various topics.