It is always better to have a new car than a used one. Not only from the angle of machineries, but also from the point of view of your pocket. Whenever you are going to purchase an old or used one, if you have to make the transaction in cash, it cuts down your bank balance. Hence, it is always good to go for a car loan as it keeps your bank balance safe.
A used car always puts you in trouble through the way of repairing. Instead of saving, you will find that your bank balance is decreasing day by day as you need to repair the car almost every day. Though car is considered as an asset, frequent repair needs make it a liability. To put down the burden of liability from your shoulder, you should have thought to buy a new car with the car loan. The car loan gives you the opportunity to repay for a long time and you are also able to correlate the status of your bank balance with your salary and daily budgets.
Car loan is a secured one compared to any other type of loan, as the defaulter will not lose the house or residence. In car loan the car is given on credit, if you are not be able to repay the loan, only the car will be seized by the authority who had given you the loan.
Getting a car loan is easier than any other type of loan. Though it has been found that a lot of people face severe trouble in case of credit, then also they get car loan without any difficulty. Getting a car can also change your life by cutting the time consumption as you can reach any place according to your convenient time.
Whenever you are going to opt for a car loan, you will also get a benefit known as APR. This remains same throughout the repay term. This benefit protects you from the incense of loan amount when the interest rate moves upwards. This APR helps to keep your loan amount at a fixed level and this benefit is considered as an USP of this type of loan as no other loan can provide you this facility. Due to the APR you are only required to pay a fixed amount of loan every month and find yourself in a relaxed position.
It will be a beneficial for you if you buy the car from the same company who is providing you the loan. With the loan you may get some added benefit like free road tax for few months or total inspection of car before you reach home. These kinds of benefits are only available with a car loan. No other type of loans can provide you any added benefits such as these.
It is obvious that a car credit is always better than buying a used car on cash. It makes sense when you are opting for a loan, because you can calculate your financial status and will be able to control it accordingly.