Bad credit: getting a loan for buying a car

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Buying a car: All what you need to know

The purchase of a car represents, after housing, one of the most critical expenses for a domestic economy. Many people consider the car, like the residence, as a yardstick of the success and social status of its owner. Therefore, many get into serious financial problems when trying to spend at home and car beyond their means. But from the financial point of view, there is a lot of difference between these two purchases. The acquisition of a home is an investment because, under normal conditions, real estate is revalued over time. Normally, although it takes many years to pay the house, in the end its value is higher than when it was purchased, resulting in a profit if it is sold again. On the contrary, a car loses value from the moment it leaves the dealership. It is not an investment, but a consumption expenditure. Stretching the budget to the limit to buy a home is dangerous, but if one manages to pay well all the fees in the end receives a good reward. Stretching the budget to the ...
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Amount of interest rate

The level of the interest rate largely determines how high the costs will rise. An interest rate of 6.8% per annum may seem only slightly higher than an interest rate of 6.4% per annum, but this may already save a few tens of euros in interest in the first year on a € 10,000 loan. Over the entire duration of, for example, 5 years, the difference will increase to a few hundred euros. In that regard, it is wise to keep a close eye on the interest rate when you want to take out a car loan. Read about: car loans bad credit no money down car loans bad credit no money down Refinance car loan Refinance car loan Rent to own cars rent to own cars Interest rate for your car financing However, the level of the interest rate is not the only important factor, it is also wise to take into account any additional costs. You can take out the cheapest car loan by looking closely at the Annual Cost Percentage (APR). This is a percentage that the lenders are required to state in o...
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What’s the point of a car loan?

To finance the purchase of a vehicle , unless you have the necessary funds, auto credit is the most frequently used solution. The term “ auto  ”   does not mean that credit is only used to acquire a car in the strict sense. The car loan can also be used to finance a motorcycle, a caravan or even a camper. Be aware, however, that when talking about auto credit, the loan is said to be “affected”. The money borrowed can only be used for the transaction for which the loan was made. What is a car loan? Auto loan, or auto loan, is a cash advance offered by a credit agency, a dealer or a bank, to finance a new or used vehicle when the buyer does not have the necessary funds for its purchase. It is therefore the lender that will pay the vehicle in its place, for him to repay a certain number of monthly payments previously defined by contract. Borrowing interest is added to the amount of the monthly payments. What is the purpose of auto credi...
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