Car personal Loans

Cars are always the wish of each people in the world, they are the important transportation in the model life. But not everybody can afford to buy a car. At this time, the think about the financial institutions where can let them borrow money. And we call it is car loans.

Car loans are defined as the secured personal loan which is used specifically to purchase a new or second hand cars or any types of vehicle. But some individuals or financial institution will provide for you with an unsecured loan to buy the car. It means you will get the cash loan which you use to buy a car.

There are 2 types of car loan, Secured and unsecured car personal loans. Usually the secured loans are known with the lower interest rat but you need to be required the full comprehensive insurance on the vehicle before the loan is accepted. But with the secured loans, the interest rates are often from 2%- 3% which are higher than interest rate of secured personal loan, but you do need to take full comprehensive insurance for your car.

The interest rates are always changing, they depend on many factors of market, government policies.... But they can be fixed or variable. But the advice from advisor is when you want to take the car loans, you should apply for a variable interest rate when you repay your loan before the end of your contract. If you want to have a lower monthly payment, you should apply for a fixed interest rate.

You also need to care about the fee of application, it is around $50 - $ 250. Some lenders will have a monthly fees for the duration of you car loan contract. When you pay all of your loan before the date of contract, you may have to pay the early repayment fee which will vary from one lender to another. But if you do not repay on time, you also need to pay the fee monthly.