Car Loan Vs Car Finance

Buying a car is always an exhilarating affair, it does not matter if it’s a new car or a used one, and people who do not have saving funds stashed away generally opt for external finance options to get their new set of wheels. The two options available in the market are car loan and car finance.

If you are considering to buy a car in instalments, it is really important that you understand the difference between the car loan and car finance. As a buyer in the car loan, you have to apply for a loan with a bank, Loan Company or a credit union. You will have to prepare your case and file for the loan with all required documents. The credit establishments then deposit the loan amount into your account which you can use for the purchase of the vehicle.

In car finance, the finance dealers make all arrangements for the loan through their bank and borrower plays a very small part in the loan process transactions. You can also use the balloon payment concept to make small payments in the initial term of your car loan and pay a lump sum big amount at the end of the loan as per convenience.

It is always a personal choice to which option you go for but we would suggest that you go for a car loan as you get better and lower interest rates and can negotiate the loan terms to sign up the best deal feasible. We understand the initial hustle for the car loan is tough so at Londy Loans, we do all the footwork for you and provide the loans in easy to go steps. So if you have decided to go for a car loan, call us on our helpline number 07 3192 4124, we will have your queries handled instantly and work with you to get your dream car on the road in no time.