The dream of owning a personal car has become easier than before with the help of a personal loan. Let’s find out why a personal loan works better than an auto loan.
When you plan to buy a car, the research not only includes the model of the car, it includes the financing options too. A car loan is the credit product which is meant to purchase cars. But it is not the only credit product which can help you in buying your dream car. One can purchase a car with a personal loan too.
Personal loans are the most preferred financing option to buy a car. Buying a car with a personal loan makes people safe from the hassles of applying for a car loan. A personal loan is much easier to avail than a car loan. Additionally, personal loans are collateral free loans which have made it the first choice of many potential car buyers.
When You Should Apply for a Personal Loan to Buy a Car
There are many occasions when availing a personal loan for is considered better than availing a car loan. Here are some situations where you should better go with a personal loan instead of a car loan.
When You Want an Instant Disbursal
A personal loan online is the fastest way to avail instant cash. When need your dream car to be yours without a delay or within a day, you should better opt for a personal loan. If you apply for a personal loan online, it is certain to get the desired amount within one or two working days. If your finance is ready, you can drive your car home at any time.
The Instant Ownership
The best advantage of availing personal loan for car purchasing is that you will get the instant ownership of the car. When you purchase a car with a car loan, the title of the car is kept by the lender until the repayment is done in full. The day when you will pay off the loan, the ownership of the car will be handed over to you. But if the same car is bought with a personal loan, you will be the owner of your car from the very first day of using your car.
The Risk of Being Liquefied
A car loan is a secured loan. The loan is backed by the car which you are purchasing. In such a scenario, should you miss your EMI payments for three or more consecutive months, the lender will take the car back from you and they may sell it off to recover the loan. But if you take a personal loan, your car will be safe from being confiscated by the lender, as you would have the ownership of the vehicle right from the first day itself.
The Loan Amount
A car loan amount is restricted to a maximum of 80% of the car price. The rest of the 20% amount has to be paid by the borrower as a down payment of the car. 20% of the car amount is not the only expenditure which you are to carry. A car buyer has to pay for registration too from his wallet. If you are among the ones who don’t want to use their savings for purchasing a car, you can opt for personal loans, with a personal loan you can get funding of the entire amount needed for the car and the registration.
The Loan Processing
The processing of a personal loan and a car loan is totally different. A personal loan has the easiest and most hassle-free processing. If you want to have online loans, the processing becomes even easier. An online personal loan borrower never needs to visit the lenders’ office nor needs to submit piles of documents to get the loan sanction. Each and every process of an online loan is smooth and hassle-free. But if you want to have a car loan, you will need to visit the lenders’ office a number of times which is much time taking and tiresome process. If you want to avoid such situations, you should better avail a personal loan instead of a car loan.
Things to Keep in Mind
A personal loan for a car buying is undoubtedly a very good way to get finance but there are some points which you are to take note. One must check the personal loan eligibility prior to apply for a personal loan. The credit score is the foremost point to be checked. Along with the same, one must be aware of the maximum amount that can be taken as a personal loan. If the amount which you can get is enough for the car of your wish, you can surely go for a personal loan for buying your dream car without a second thought.