The car loan, is this always the best choice if you need money for another car?
A car is an indispensable means of transport for many Dutch people, so the panic can be great if suddenly another car is needed. If the finances are not there then money is thought to be borrowing, an obvious option seems to be the car loan, but is this always the best choice? Now let’s first see what a car loan actually is. The car loan is a personal loan but then adjusted with a few extra conditions. For example, the maximum amount to be borrowed is often limited and often only new cars or cars up to a certain age may be purchased.
Another option is to opt for a financing at the car dealer, but we would like to warn you not to close it. The conditions may seem favorable, but it is advisable to first check at home if there are no more advantageous options. For example, buyers are often persuaded with an action that does not require interest to be paid for a few months. If you then look further then the interest rate is much higher than if you would take out a loan. So take your time to choose the right financing so that you do not have to spend too much money on financing every month.
What are the other possibilities to finance a car?
Now there are other possibilities if you want to finance a car, so you could also take out a regular personal loan. There are also loans where you do not have to account for what means that you do not have to indicate what you want to do with the borrowed money. If you opt for the regular personal loan, you also do not have to deal with the conditions that are set for the car loan and you could also purchase a car with an older year of construction.
The most sensible thing is to base the loan on the brand, model and year of construction of the car. Once you know the purchase price, you can make a choice between a financing at the dealer, a car loan or a regular personal loan. If you are going to apply for a loan, you will have clarity within a few working days and you will be better off taking that time and not paying too much every month.