Having your own car undoubtedly makes everyday life easier. Unfortunately, regardless of the type, size, and brand, for some, buying a car can be a huge expense. In such a situation, it is worth considering taking out a car loan. Deciding on it, however, should pay attention to several nuances.
Time to start searching
The answer to the question “where to look?” seems to be simple – in proven places. There are plenty of options from traditional banks to non-bank companies. At the bank, employees will probably offer us a car loan. Unfortunately, taking it is not easy. Even with extra cash, not everyone can afford to buy almost a new car.
It turns out, however, that this type of loan can only be used if the car is not more than twenty years old on the day of the full repayment of the loan. In short, it can be said that the older a car we want to buy, the more we will pay for the loan. Therefore, it is much more reasonable to use non-bank loans. The most useful will be when we decide on a car up to 5000 zlotys or if we have already collected part of the amount and we only need topping up.
Before taking a loan
Some are worried that the bank will not grant them a loan. To make sure that we receive the money we need, it is worth checking the loan allocation rules in advance.
These may be slightly different, depending on the place. Importantly, non-bank companies will not require from us such information as the form of employment, the amount of own contribution or the exact parameters of the car, referring in particular to the year of production and the current technical condition of the vehicle. So as you can see, this is a much simpler and certainly faster solution that is worth considering.
This cannot be missed
Regardless of whether you decide on a loan or car loan, we should always pay attention to all additional costs, including of course the interest rate. To a large extent, it depends on whether we are able to pay off the debt regularly. Before signing the contract, it is worth considering whether the monthly installment will not burden your household budget too much.
The next issue is the contract. We should read each entry carefully, and if we do not understand something or raise doubts, we must consult with an employee of the institution or talk to someone who has sufficient knowledge on the subject. The most important points of each contract relate to the repayment period, the number of monthly installments but also to the method of transferring money and of course possible penalties for the lack of systematic payments.
A car loan is not much different from loans for other purposes. As with any other contract, we should be particularly sensitive to its provisions. We also need to be prepared to pay the right fees so as not to get into debt that is difficult to pay by accident. Let’s avoid debt in foreign currencies – although at first, the offer may seem tempting, in the end, the result of such a decision may be fraught with consequences.