Car Loan Secured Against Your Home
Need a secured home loan for your car?
You've shopped around to find just the car you want, and she's a beauty. She's sitting right there on the dealer's lot, waiting for you to sign the papers and driver her home. You've compared petrol consumption, service options, leather vs. vinyl interior, safety ratings - you've left nothing to chance. On the whole, we're a savvy lot when it comes to choosing the best car deal for our money. Why then do 17% of us Brits who buy a new car sign on the dotted line for a loan from the dealership when there are far cheaper ways to pay for that new car?
According to Alliance & Leicester, more than half of those that choose to take a loan at the dealer do it because they believe it's the cheapest and easiest way to pay for a new car. Here are the facts: the loan rate at the dealer averages about 13% APR. If you take your custom to banks and other lenders, the secured loan rate UK consumers can get is as low as 5.5%.
In simple terms, you'll pay less for your new or used car is you shop for your finance as hard as you shop for your car. There's no rule that says you have to take a loan from the dealer when you buy a car. You've got lots of other options, and most of them make more sense if you take the time to shop around for the best secured loan rate UK lenders offer. Right now, secured loans offer the best rates available - and those rates can save you thousands in interest fees over the life of a loan.
In everyday money terms that means that if you pay for the top new Daihatsu Copen with a dealer loan, it will cost you £1,755 in interest charges if you pay it off in 12 months. Buy that same car with a secured loan at a 5.5% rate, and you'll pay £743 in interest charges in twelve months. Taking out that fast secured loan UK lenders offer just put over £1000 in your pocket!
Given that, it's obvious that shopping for a loan should be a big part of shopping for your new car. In fact, choosing the right loan is the single best way to save a packet. Here are some points to keep in mind when shopping for a loan to buy a new car.
- Car dealers make money on your new car financing. They have no interest in getting you the best loan rate available. Unless the dealership is running a special rate, look elsewhere for your car financing.
- If you already do business with a bank or building society, check to see what kind of loan rate they can give you on a personal loan for a new car. While we usually think of secured loans as loans backed up by your house, you can also secure a loan with another piece of property - like a car. And if you already do business with someone, they're far more likely to give you a good loan rate.
- Don't assume, though. The High Street banks have higher expenses and less reason to fight for your business. Shop around online to find the best secured loan rate UK lenders are offering. You'll find charts that help you compare loan rates from different lenders at moneyeverything.com.
- Choose a loan with a reasonably short rate and low APR for the best balance between monthly payment and total cost of loan.
- Online lenders are often in a good position to close on your loan quickly - which is important when you want to take advantage of a special price. Find a fast secured loan UK lenders offer at moneyeverything.com, where you'll find all you need to know to get a good deal in a fast loan.