Car Repair Loan - Laugh Your Way To The Garage

After car loans, within a few years, comes a car repair loan. Well, if you are lucky, you will probably get a substantial amount from your insurance company. However, if the damage to your car is beyond the terms and conditions of the insurance package, get ready for a trip to the financier for a car repair loan. If you are the type, who seriously plans years ahead, it is likely you will be thinking about a new car, so that the chances of looking around for a car repair loan will be slim. Actually, it is catch 22 situation. Why?

Making Choices

Car loan rates largely depend on:

• The status of the car to be purchased: used or brand new.
• The applicants credit ratings: Good, bad or bankrupt.
• The applicant's age: how long does the applicant have to repay the loan before retirement?
• The duration of the loan

Let us look at the first point. New cars are more expensive; therefore, require more amounts of loans to be taken. Higher loan amounts, higher the monthly installments. However, opting for a new car means less chances of the car needing spare parts replacements. On the other hand, if you buy a good used car, you will require a lesser loan and therefore, lesser monthly repayments. Then, you would run the risk of requiring a car repair loan after 2 or 3 years. It is more of a gamble actually, if you are lucky, you might be in situation where you can actually sell off your car as soon as it shows an inkling of problem and clear off the rest of the loan that you had taken years ago. Subsequently, you can go for other new car loans prevalent during that time - might even get cheaper car loan rates.

The second point is about the credit ratings. Yes, car loans, just like any other loan, require the applicant to have a decent credit history. Car loan rates greatly depend on whether you have been bankrupt before, or whether you have any other loan simultaneously. Therefore, it is not just about buying a new or a used car... How old are you? How many years of work do you have left with you? Apply for a loan that you can easily pay off before your retirement. If the loan company feels that you are not likely to clear off the loan amount before your retirement, getting car loans, or for that matter, any loan can be quite tough. The fourth point shows us that the longer the loan duration, lower the car loan rates, but subsequently you end up paying more as the tenure expires.

Whether you are on the look out for car repair loan rates or refinance car loan rate, careful research and decision-making is required. Car loans can be quite a chapter, if not chosen wisely.

When it comes to car loans, the possibility of future car repair loan are the category, very few people actually think about. Car loan rates can vary depending on various factors. Think about the prevalent refinance car loan rate, if you find your current car loans sticky.

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