Secured Car Loan
If taking out expensive finance from a car dealer is putting you off buying a new car, then perhaps you should consider using the money that you have tied up in your house to fund the purchase, rather than paying over the odds for a high interest finance package that will end up costing you far more than you might pay otherwise.
One of the fastest growing business models at the moment is the so-called car supermarket where new and nearly new cars are sold with ticket prices that are well below the market rate. On the surface, it seems that if you buy your car from one of these large outlets you will save a great deal of money, but in reality, in the long term it could cost you twice as much as elsewhere. Rather than actually selling cars, such establishments actually use the cars in order to convince people to take out very expensive finance packages with interest rates that can run to double figures.
If you borrow money from a high street bank to purchase a car, more often than not, they will calculate the interest rate based on the depreciating value of the car, and this will lead to a fairly high interest rate being charged.
The best way of getting the car you want at a total price that suits you is to use the equity that you have trapped in the value of your home to fund a low cost secured car loan. Thanks to rising house prices over the past few years, many people now have thousands of pounds tied up in their house that they could use to fund big purchases such as a new car in an alternative way to a conventional finance package.
Typically, secured loans against the value of a house can offer interest rates that are significantly below those offered in a personal loan or expensive finance package, and this can allow you to get much more for your money.
Loan interest is effectively the fee that a lender charges to cover their costs in lending you a specific amount of money, and it can vary from person to person. The way in which the loan interest a particular individual will pay is calculated takes into account a number of factors including the amount of risk that a particular borrower presents, and also the overall cost of doing business. A high street bank will always charge more to lend money than a smaller lender, because their overall costs are higher. The best place to find a cheap secured loan is online. Smaller loan companies that only offer secured loans are able to reduce the amount of risk they take on, and consequently offer much lower repayment rates than their competitors, allowing you to save hundreds of pounds over the duration of your loan.