Different Types of Easy Car Loans Available Online

Do you want a car? Are you not sure about the different car loans available online? Here, you can find every detail about different types of easy car loans offered by different vendors.

You can get car loan for new vehicle, and you can choose a car loan for a used car. The car loan of the new car is secured by the value of the car and you need to pay high rate of interest for it. However, you can search such car loans online and compare their rate of interest to choose the best deal.

• Secured car loans: You can take a car loan that is secured by an asset. Such loans have lower rate of interest because on non-payment, the lender can sell your secured asset. Plus, you can easily avail such collateral loans within few hours or days because bank or lenders will secure their loan with your assets. 

• Unsecured car loans:  Some cars are too old, and they don’t qualify for the new car loans. If the car is older than six years, it might not qualify for a used car loan.  This is very similar to an unsecured personal loan. It is complicated to get the unsecured car loan approved. If you have a poor credit history, then you cannot get such unsecured car loans. 

• Fixed-rate car loans: As the names suggest, these are the loans that offer a fixed rate of interest. If you want to repay your loan before the tenure then you have to pay little extra. Plus, there are few lenders available that offer part-payment facility. So you can check these features to choose the best deal.  

• Variable-rate car loans: It is a rare loan provided by very few lenders. In this case, lender can change the rate of interest. They can move the price above or below, depending on the market. Thus this loan is very risky. 

• Redraw facility: Homeowners can take a redraw facility to buy a car. This type of loan allows you a much lower rate of interest. You can also get your repayments rolled into one. But if you don’t make extra repayments to account, it will cost you much more than a conventional car loan. So if you don’t pay back the redraw within the period of the car loan, then you are forced to pay more interest. It is on of the easy car loans to get approved.

• Peer-to-Peer car loans: These have a much higher rate of interest. Some lenders offer personal loans that can be used to buy a car. But it is not a car loan and you need to apply for a personal loan at higher rate of interest to buy a car.

• Car Dealership Financing: Many car dealers offer financing of the vehicles. These dealers can offer a much lower rate of interest. The paperwork of these car loans is also easy, and you have much more bargaining power in case you have a pre-approved car loan. You can check your banking dashboard to check the offers and if you find any pre-approved car loan offer on your dashboard then you can directly apply for that through your online banking portal. In this case, you can show the approval letter to the dealer to get your car delivered.     

If you are looking to buy a car then these are plenty of loans you can choose from.  But before you decide to take a loan make sure you do a proper study and ensure to get the right type of loan as per your requirement.