Stacey has recently got her P’s. It’s an exciting time! She’s also working part-time at a local cafe in Elizabeth and has just enrolled into an Arts Degree at Adelaide University. But there’s a problem. To travel from her place in the north-east of the city to Uni and then across to the cafe for work, Stacey needs to catch three different buses or the train. It makes getting back home – especially on work evenings – a real challenge. Stacey really needs to get herself a set of wheels, but for this, she’ll need a loan. So what are Stacey’s Adelaide car loan options?
Personal Car Loans
There are two types of personal loans Stacey might consider: the secured and unsecured car loan.
A secured car loan would provide Stacey with the money needed to specifically buy a car. Whilst Stacey would be the owner and driver of the car, the car is also security on the loan. The lender does have an interest in the cars. They can take the car back (or “repossess”) the car if Stacey falls on tough times and defaults on the loan repayments. The plus side of secured car loans are the more attractive interest rates that allow for low monthly repayments, plus often no account-keeping fees and the ability to top up with Stacey’s own cash in the purchase of her new vehicle.
An unsecured car loan is basically a personal loan. Technically, a personal loan can be used for anything such as a holiday, renovations or in Stacey’s case, a car. By taking an unsecured loan, Stacey’s car will not be used as security on the loan. The loan can be used for more than just her car and the lender does not have an interest in Stacey’s new wheels. Quite simply, they have no right to repossess it if Stacey can’t pay out the loan or is late with her payments. This benefit to Stacey comes at a cost however in terms of higher rates of interest and loan fees. Certainly, the unsecured loan option may seem flexible and attractive to a young driver like Stacey.
Business Car Loans
Down the track, Stacey would like to set up her own business; perhaps as a writer, or an online journalist. Then she might want to consider a no or low doc Business Car Loan for her next car. These loans are subject to lending criteria, but it is an easy alternative for the owner of a small business when traditional documentation such as pay slips and group certificates may not be available.
Contact 123 Carz for more information about car loans.