Deciding that you want to buy a car is the first in many steps toward new car ownership. First, you have to have a loan (unless you’ve won the lottery or are related to Bill Gates). Luckily for most of us that aren’t related to Bill Gates there are many types of car loan packages that can be obtained for owning a new or used car. Here are some of the more popular ones.
· Pre-computed Loan
· Secured loan
· Unsecured loan
· Simple Interest Loan
Each of these is geared to the preference of the buyer. For example, the most popular is the pre-computed loan, which calculates a set interest and principle amount. You can’t pay it off early and get a break on the interest. In other words, the price is the price. The secured loan, however, uses something of value to the buyer as collateral, such as another paid off vehicle, a house, or some other high value item. The downside to this is that if you default too many times on your car payment, whatever that item is belongs to the bank. If none of those seem doable, then most opt for the unsecured loan, but its downside is that the interest rate may be higher. For more information on the different types of car loans, and more, you can visit: how to buy you first car