Many people who want to buy a car would like to know what is more profitable to take, car loans or consumer loans . Let's consider both options, and determine which solution will be more reasonable.
Which is better: a car loan or a consumer loan?
To begin with, we will understand what distinguishes a car loan from a consumer loan: if you look only at the essence of the matter, it becomes clear that the main differences are two:
- The interest rate on auto loans is less than when taking consumer credit.
- When you make a car loan, you are almost always obliged to pay and CASCO.
In order to make the right decision, first calculate what the difference in overpayment will be for one loan option, compared to the other. Further to the overpayment for car loan add the amount that you will have to spend on CASCO, so you will see in which case you will pay more. Of course, much will depend on the conditions of the bank, so do not be lazy to visit several similar institutions, it is possible that somewhere you will find almost ideal conditions for yourself.
There is another factor that makes it possible to determine whether it is better to take a car loan or a consumer loan, this is the first payment for a car that you have to pay if you choose the first option. It is clear that if you do not have the required amount, then you will simply be forced to apply for a consumer loan. But, if there is money for the contribution and there is an opportunity to allocate additional funds for this, calculations should be made again. Perhaps it turns out that it is much more profitable for you to take a consumer loan, add the available money and thus, do not overpay anymore.
The last thing worth assessing is the conditions for the provision of money by the bank, whether it will be possible to make early payments, is there an option, if necessary, to suspend them and the availability of a commission for maintaining the account and other services. All these parameters can affect the decision, so when considering car loans or consumer loans to take, be sure to consider them. Often, people who simply did not compare bank offers on these criteria, pay out where as large amounts, if you do not want to be among them, then do not make such a mistake, learn all the conditions and details of the transaction in advance. Only in this way will you find the best option.