To buy a car, do you borrow a car loan or a consumer loan?
We know that when it comes to financing a car, the most common alternative is to apply for a vehicle loan. However, there are many who wonder if they could finance it with a consumer credit and if it would be helpful or on the contrary, it would harm them.
It gives you the money and the guarantee that remains is the same vehicle
If you also have the doubt, we will solve it with a few simple principles.
When a bank gives you a vehicle credit, it gives you the money and the guarantee that remains is the same vehicle, in case you do not meet the payments, the bank can go against the car.
In quotation marks, it is a lower risk because there is a guarantee in force, such as in the case of housing loans, where the property is the one that serves as a guarantee to be paid until the last weight of the credit.
When it comes to a consumer credit
However, when it comes to a consumer credit, do you know what the guarantee is? Basically, his person. That is why the rates are usually higher. He is asking the bank to lend him such an amount of money and the only guarantee that he will be paid is his word and the signed contracts. While in the case of vehicle credit, the pledge is the same car.
That is why an auto loan has lower rates than consumption
That is why an auto loan has lower rates than consumption, so it must be used for that purpose. However, you may also not be able to pay it off if you do not choose the credit you need in the first instance. Use the auto credits of Good Finance and choose the one that suits you.