Category: Loan Page 10 of 21

Buying a used car is really feasible? Let us check out

On January 23, 2021

When you buy a car, you feel boastful and enthusiastic, and an advent way of manner engrosses your mind and all senses to behave in such a unique case. You can be familiar with those of performing assets that you possess and now think for others as in the form of a car.

A car, being beneficial in today’s lifestyle, gives off the tremendous exploration of the number of jobs that were very difficult at once upon a time in history. But now as we are in modern society, the cars have been becoming a part of our life they are the integral source of performing asset.

A car makes the situation easy and feasible for everyone and sometimes makes its movement hiked with the greatest accomplishment of challenging nearing tasks. It can accumulate the concerned and viable anatomy of owner’s thinking and drives him as per his wishes.

Last year, due to COVID outbreak, we were not getting the chances to pay our attention to buy cars. Things were not allowing us to spend our money on such hard money bearing load, and still, we are deferred to analogue the way it exists in our lives.

We all are facing the situation yet to get resolved, and no one could represent its solution until the right time. Many people might think of dealing the emergencies with having cars. If cars were there with them, they would have taken easy access to their wounds’ worthwhile treatment.

Through this blog, I acclaim the sources of expressing my thoughts over buying used cars over the new one. How it will help retain your pocket value and justify the reasons for assuring financial assistance through direct lending.

Reasons to buy used cars

In this blog, I am going to explore five reasons to buy used instead of new.

While used cars can mean anything from a month old to a new edition, focusing on nearly new cars can be more reliant.

Saving Money and Great depreciation factor

Indeed new cars are enticing zero miles, no previous owners. Factory warranties and that ever-coveted new car smell but you are throwing your money away. It is not an opinion, and it is a fact.
As soon as you drive that brand spanking new car off the lot. It depreciates by an average of 10 per cent. For example, if you just paid 20k pounds for a new car, it later worth 18K pounds by mile one and if you are financing that means your car is now worth a less than the loan you took out for.
It continues to depreciate overtime another average 10 per cent over the first year of ownership, then 15 to 25 per cent over the next four years.
Eventually, some cars become classics and start to appreciate, but that takes many years for you, and your family will not become a rare commodity by the year 2050. Save your money and save yourself from the hassle.

Variety

If you limit yourself to what they have available on the new car lots, you are limiting yourself to this year’s model. Whatever colours they have or transmissions they possess and so on.
Choosing from the used market even within the nearly new range of five or so years, you have such a wider variety of options to choose from and with a little patience, you have a better chance of pinpointing exactly what you want.

Drive your dream car for less

Find a model that is one or two years old still low miles and under factory warranty. You might be able to find a fully loaded version for less than a brand new base model, and you will save a bundle.
Drive the better car for less. A premium brand or premium trim level is essential to you. Shopping the used market opens up a world of affordable possibilities.
Dreams cars for less good cars for less.

Easier financing easier credit approval

Getting approved for financing or leasing on a new car can be challenging. It is not up only to a dealership; rather, the car company themselves can be quite strict.

You might indeed pay a slightly higher interest rate on a used vehicle loan as a rule used vehicles are cheaper, so you have a better chance for approval.

Finalising with financial modes

But many times, even pocket does not allow them. However, they could equip themselves with the financial stability to modify their concerns in an opportunity by filing for the loans from external financial sources.

They can find their easy and way more straightforward access to the credit union for a car loan, specified for the working class and the lower and upper-middle class. Now they can bring a car in their lives and hope for the best comings in their lives.

Doorstep Loans in Ireland: Are They Same as Payday Loans?

By admin

On January 16, 2021

In Loan

Payday loans are famous in the UK, but no companies are selling such loans in Ireland. As the name suggests, these loans are repaid in a lump sum on your next payday. These loans have invited a barrage of backlash because they carry very high-interest rates. Considering the Ireland market, it does not seem that regulatory authorities will soon allow lending companies to offer such loans. However, various companies provide cash loans at the doorstep of people.

Doorstep service is quite popular in Ireland. Cash loans are generally offered between €100 and €500, so you can meet all unexpected expenses. Such loans are known as doorstep loans in Ireland. The lender representative will visit at your doorstep to offer you cash that you will pay back on the due date. This raises a question if doorstep loans and payday loans are alike. Are they in the disguise of payday loans? Is it a stratagem to make profits from gullible borrowers?

It is not surprising that the loan market is often discombobulating in Ireland. You all know that there are generally two types of loans: secured loans and unsecured loans. The former requires collateral, and the latter requires no security. However, they are further divided into categories of short term and long-term loans. It is hard to choose the right type of deal because online lenders offer various kinds of short-term loans like cash loans, emergency loans, unemployed loans, and the like. Since there are multiple types of short-term loans, and all of them have more or less the same features, doorstep loans are likely a type of payday loans. To get the answer, you need to understand both types of loans first.

Payday loans

The duration of payday loans is not more than 14 days. When you put in the application form for these loans, the lender will not run a credit check. This is why these loans come with instant approval. You can use these loans for any purpose, and on the due date, you will have to pay back in a lump sum.

If you fall behind repayments, the lender will ask you to roll over the loan. It means the repayment term will extend for another 14 days. However, you will have to pay an interest penalty and late payment fees. This is how the loan’s cost quickly adds up, and eventually, you fall in a debt trap.

Doorstep loans

First of all, the doorstep loan is not a kind of loan product. Any small loan that you get at your door service is known as doorstep loan. These types of loans are generally aimed at the unemployed, the disabled and the retired. When you put in the request for these loans, a representative will come at your doorstep.

The representative will analyse your affordability and then hand you cash to pay back on the due date. It may seem like these loans do not differ from payday loans. The only difference is you can get money at your doorstep. Wait before you conclude.

Doorstep loans are not the same as payday loans

Although they may sound like payday loans, they are not similar at all. When you apply for payday loans, it is usually your responsibility to borrow money as per your affordability. Payday loans quickly fund your needs, and hence lenders do run a credit check. They do not assess your credit file to see your payment history. They do not look at your credit file to see if you have already taken on another debt and if you will be able to manage those loans along with your payday loan.

Further, they expect you to settle the outstanding amount in a lump sum. When you fall behind the repayment date and roll over the loan, you find yourself in a debt trap. This is how payday lenders make profits.

Doorstep loans do not work that way. A representative will visit your doorstep to analyse your affordability. They will check your income records and monthly outgoings to see if you can afford to pay back what you are borrowing. Your application can be either turned down, or the lender will offer you less than what you want to borrow if they suspect about your borrowing capacity.

These loans never want you to pay back in a lump sum. The duration of these loans may vary depending on the amount you borrow, and you will pay off the debt in weekly instalments. There will never be pressure on paying back the money outright.

The bottom line is doorstep loans are not the same as payday loans. However, you still be wary about your borrowing capacity. Never borrow if you think that you cannot pay it back.

Prepare Yourself for the Factors that Affect Your Car Finance

By admin

On January 15, 2021

In Loan

Approval for car finance is easy to get, but the overall cost may very well drain your finances. People put months and years of their savings for the down payment only to get some budget-breaking instalments. The lenders try to focus the negotiation around some irrelevant factors to the loan to strong-arm even the most perfect applications.

You don’t have to be an expert in the loan process to counter the arguments of the lender. Only some factors contribute to your loan affordability and profile that needs to be taken care of.

In this blog, we have mentioned those factors that affect car finance to prepare yourself.

Credit Score

The credit score is the report card for your financial decisions and mistakes. Every missed payment and defaults for the loan are mentioned in it. The overall ratings define the risk profile of your application.

The lenders will offer better interest rates to the applicants with the perfect credit score because of less risk. They are seen as responsible borrowers among the others who often find themselves in the financial troubles. A lower credit score will hinder your chances of favourable terms to a great extent.

You can still get car finance in Ireland for bad credit with the help of private lenders. They also offer instant decisions and flexible terms. However, the interest rates may differ from the banks.

Down Payment

The down payment is an essential aspect of any mortgage or loan. A more significant down payment reduces the risk for the lenders. Therefore, they are more willing to approve the loan application.

For you, it means a lower loan amount to repay. You will save money on the overall cost of the loan courtesy of low interest paid during the loan tenure. Also, the instalments will be more manageable for the same terms.

It is recommended to wait for a few months more to increase the down payment, if possible. Otherwise, a bridge loan can help you with the down payment. Some lenders offer 12 months moratorium period to the borrowers.

Loan Term

Short- and long-term loans have a different impact on the eligibility and affordability of the loan. The long-term loans are less of a risk for the lender as the instalments seem more manageable to the borrowers. Also, is provides returns for years to the lenders.

The short-term loans are comparatively riskier because of hefty instalments each month. As a borrower, you save money because of the reduced overall cost on loan. You will have another line of credit available because of early repayment.

You must think of the instalments before the overall cost of the loan. The money saved over time is sometimes not worth the risk of default. There are repayment holidays offered in between for longer terms to help the borrowers during the financial troubles.

Vehicle Age

New vehicles receive priority for car finance because of their resale values. Expect lower interest rates and favourable terms when you opt for a new car. Which means buying a new car can save you some money on the overall cost of the loan.

The used cars may not be a popular opinion for the lenders, but they are indeed budget-friendly. You are saving a lot of money on a car in good condition that is a few years old. Comparing the two deals is not easy until you have some bias towards new or used.

Debt-to-Income Ratio

You need a regular income and a perfect credit history to become the favourite borrower for the lenders. However, the income may guarantee the loan but not the loan amount. Debt-to-income ratio determines the affordability for a loan amount.

Even some heavy paycheque lands in the rejection list because of the applied amount. You can increase the chances of approval by adding some additional income before the application. Start a side gig, work overtime, or make your spouse a co-signor to get some great offers.

To sum up, these are the most prominent factors that affect car finance eligibility and terms. You can start preparing your profile a few months before the application. By the time of negotiation, you will have a profile to get the desired terms.