Auto Loans - Make Wise Decisions

Auto Loans - Make Wise Decisions

by Alexander Anderson

Nowadays, in terms of huge variety of vehicle manufacturing companies throughout the world, there is no need to purchase an old car, even if your family budget is not far above the average. How can that be? No matter which bank you choose to apply to, you will find options of purchasing the new car or a good second hand one.

If you choose to buy a car from an individual person, please do so. Bank will pay for you! Even more, you do not even have to trouble yourself searching the dealers, as almost all banks have a wide list of dealer contacts advertised on their websites. Once you choose the new car you want, the loan calculation can be done directly on the website and all you need is to have 25% of the overall amount you intend to spend on your car, a minimum required salary, visit the bank, fill out the form and enjoy your purchase. The duration of loans differs and subsequently the percentage you have to pay differs also. Despite the fact that you actually pay more for the car, you still have a chance to buy something you would be unable to with your salary or it would require years of savings.

Say you want to buy a car for 10 000 USD and the preferable loan duration is 72 months. Then the loan bank will give you is 7 500 USD, you have to cover 25000 USD plus one year insurance in the amount of 450 USD so the initial expenses will be around 2950 and monthly payable amount will be 171.06 USD. In total you have to pay 14816 USD for your vehicle instead of 10 000 USD that is excluding the insurance which makes you car 48% more expensive. Though your monthly expenditure will be only 172 USD. This calculation is made for the maximum period and the less the loan duration is the less over-spent you will have. If you buy the car for the same price, but your preferable loan duration is 24 months, then your monthly payable amount is around 374 USD but the car will be only 15% above its actual price. This is only one example, however the calculations may more or less vary in specific bank you choose and even more, if you are the Bank's Client you may even enjoy some privileges.

Finally, it is said that the car is part of a family and choosing the perfect one is as important as choosing a family member.