| There are many non-traditional lenders out there | | | | amounts, longer repayment programs, lower |
| offering car loans and other kind of loans that you | | | | monthly payments, etc. |
| can use for purchasing used cars. | | | | Alternative Sources Of Funding |
| Most people get finance through dealerships and | | | | An interesting alternative for financing a used or |
| end up closing on expensive deals. That is why | | | | even a new car purchase is to resort to home |
| most advisors suggest resorting to car loans | | | | equity loans. It may sounds strange but truth is |
| from banks and financial institutions. However, | | | | that home equity provides a very interesting |
| those who want to purchase used cars will not | | | | source of funds as it let’s you obtain very |
| find finance from dealerships but also, in most | | | | advantageous terms on your loan like a low |
| cases may not get finance through banks and | | | | interest rate, low monthly payments, higher loan |
| traditional financial institutions either. Happily, there | | | | amounts and more flexible repayment programs. |
| are alternative sources of finance. | | | | With a home equity loan you will not have any |
| There are many non-traditional lenders out there | | | | difficulties in obtaining the loan amount you need |
| offering car loans and other kind of loans that you | | | | because the collateral for the loan will not be the |
| can also use for purchasing used cars. Purchasing | | | | car itself but the equity you have left on your |
| directly from the owner can save you thousands | | | | home. Equity is the difference between the value |
| of dollars, but if you do not have the funds, you | | | | of your property and the debt that is guaranteed |
| will need financing and that is when car loans can | | | | by it. |
| provide you with the aid you need. | | | | Advantages Of This Method |
| Car Loans For Used Cars | | | | Due to the less risk that lending through home |
| Getting finance to purchase a used car can be | | | | equity loans represent, you will be able to obtain |
| difficult, most lenders will not like the idea due to | | | | the money with an interest rate that can be as |
| the high risk involved in such transactions. The | | | | low as half the rate usually charged for car loans. |
| value of the car depreciates rapidly if it is not a | | | | Also, since you can obtain a loan with a |
| new car and thus, if used as collateral it will not | | | | repayment program of up to 15 years. You will |
| serve its purpose. That is why some traditional | | | | be able to get significantly lower monthly |
| lenders provide loans for purchasing used cars but | | | | payments you will be able to afford without |
| with short repayment programs so as to avoid | | | | having to make any sacrifices. |
| the car’s value depreciation. | | | | The use of equity for purchasing cars may not |
| However, there are non traditional lenders willing | | | | be the traditional way but certainly provides a lot |
| to grant secured and unsecured loans for | | | | of benefits and is specially useful when you want |
| purchasing vehicles that in exchange for a slightly | | | | to purchase a used car that usually has more |
| higher interest rate, will provide you with all the | | | | complications in terms of financing. However, bear |
| funds you need for purchasing a used car from | | | | in mind that with a home equity loan, if you fail to |
| the previous owner and tailoring the loan to suit | | | | repay the loan you may suffer repossession of |
| your needs. You will be able to get higher loan | | | | the property. |