The way to finance your car does not have to be complicated if you have all the information at hand ; so read on to understand how auto financing works and what the different options are available. After this little guide you will be able to decide which is the best financing option for you! Check Guaranteed car finance here.
When buying a car, whether pre-owned or new, you must have something very clear: how is your financial situation for the future? Although we cannot guess our future, there are some expenses that we know will exist later such as car maintenance, payment for use of highways, driving licenses, etc. In addition, if you are thinking of having children, pets, acquiring a property or taking an important trip, you will already know that your expenses will increase, so you will have to decide on a loan with installments that allow you to be more comfortable for other payments.
So, our first recommendation is that you ask yourself , how do you see yourself in 2 or 5 more years? You will have to evaluate the real impact that the payment of your car loan will have on your future pocket.
How does car financing work and which ones exist?
Traditional financing plan
As its name implies, this type of plan would be the classic one for natural persons: dependent workers, independent workers, retirees, showmen, members of the Armed Forces, among others. The grace is that it allows you to choose the term in which you will pay it (from 6 to 60 months) and where you can also select the foot you want as part of payment. It also allows you to buy a car without any feet, if you prefer.
This type of credit is one of the favorites since it is generally available for any type or model of car , plus you can also include associated insurance, future maintenance and accessories in the fee, in order to have everything accounted for from the beginning.
Another positive aspect is that the management of your financing plan is done in the same dealership that you choose , which is quite convenient if you want to take your new car that same day.
Chevy Plan: How Does This Car Financing Work?
This type of smart financing is best for those who love to get a new car in every 2-3 years and who enjoy new advances in technology as soon as they hit the market. Plus, the Chevy Plan has exclusive bonus benefits for new cars.
This type of financing allows you to pay from 20% to 50% of the total value of your car in cheaper installments and when the date defined at the beginning is met, you can choose between three options.
Renew your car
Taking a new loan for a period of 2 or 3 years and thus obtain a new model with benefits.
Keep your car
Your credit can be refinanced at the end of the payment plan.
Return your car
You can return it by canceling your last installment called “Guaranteed future value” (which is defined when you take the credit), depending on whether you contracted a 25 or 37 installment plan (2 or 3 years).
Tips for deciding whether to take one financing plan or another
Evaluate well how you project your financial situation in the future.
Define a realistic budget for the value of the loan you want to pay.
Always request all the information about your plan such as interest rate, amount of fees, associated expenses and conditions that you must meet.
If you have doubts, ask friends or acquaintances who have already opted for one option or the other.
Talk about it with your partner or with whoever has a direct impact on taking the loan so that both are aware.
