There are various ways to fund your car purchase. You can either take out a mortgage or car loan or extend your mortgage. This is your guide to car loans .
The most common way to do this is to take out a mortgage loan in the car. You do not necessarily have to make equity, but you must expect poorer interest rates the less you have in savings. Car loans usually come with hull insurance but you can save money on partial hull or drop hull completely if the car is old and not worth that much. However, the bank will rarely pledge your car if it is older than nine years. Repayment on loans with car mortgages is usually 8-10 years.
Mortgages on the property
To get better interest rates, it may be an option to take out a mortgage loan in your home instead. However, the favorable terms you get will depend on the amount of the total loan. If this exceeds a certain percentage of assessed property, the conditions will not be as good anyway. It is also possible to pledge in another person’s property, for example from parents who want to help.
The oldest form of loan is also often considered the best. This means that you extend your mortgage. You must then make sure that the mortgage does not exceed 60% of the value rate and that the total loan also does not exceed this limit. If you do this, you can secure the best interest rates. However, if it gets cheap, it assumes that you pay down at the same time as you usually do for a car loan and do not delay. The council is always paying installments in line with the value reduction on the car.
Loans with residual value are often used for car loans
This means that you only repay part of the loan amount and receive the residual value as a repayable loan. You end the loan relationship only after you have sold the car. The residual value must therefore be calculated at the price you expect to get when you sell. If you do not have a stable financial situation, it is common for the bank to require a guarantor.