Are you the kind of person who always wished to own a car, but is the cost of buying a new car nagging at the back of your minds? If yes, then these used car loans will be the opportunity of your life to make your dreams come true. Getting started with these used car loans is not an uphill task as you have innumerable private lenders and other financial institutions which give you financial assistance. Since the private lenders have a major hand in giving used car loans it gives more flexibility in interest rates and repayment period.
Advantages of used car loans
Apart from flexibilities in interest rates and repayment period you also have an added advantage of paying less interest rates as the used cars are cheap. It provides a good value for your money and also relieves you from the teething problems faced by new cars. You can also get to drive your own vehicle. As a coin has both faces, getting used cars has its own disadvantage of less legal protection as it is bought privately. This can be overcome by being a little careful during purchase.
Types of used car loans
Used car loans ranges from £1,000 to £25,000. The interest rates also vary from 5.8% APR to 19.8% APR. Usually the interest rates do not vary with time. The repayment period also varies between one to seven years depending upon the individual’s convenience. These used car loans also don’t have any hidden charges coming with it. Basically there are two types of used car loans.
· Secured used car loans, where you are required to produce collateral needs such as your house, valuable things.
· Unsecured used car loans, where it is not necessary to produce any collateral needs but information regarding employment, residential proofs and income are mandatory. To get used car loans you must be employed and also must be staying in UK and should be within the age of 18 and 65 years. Even if you have bad credits, you can get loans by paying higher interest rates.