This vehicle financing guide is here to explain everything to you. As a result, it’ll make your life much easier. Specifically, you can discover:
- Where to get vehicle financing from
- How vehicle financing (such as car financing) works
- The benefits of vehicle financing
By the end, you’ll be ready to find the best vehicle financing for you and get your hands on the car, motorhome, or caravan that you’ve been dreaming of.
Table of Contents
Where To Get Vehicle Financing
In 2022 alone, over two million cars were purchased by consumers and businesses using vehicle financing (Statista). This highlights how popular vehicle financing has become — but you’re probably interested to know where people are getting their vehicle financing from.
These days, there are lots of vehicle financing options out there for you to use. For example, credit brokers Auto Finance Online are a great choice for the adventurous types who’re looking to finance a motorhome or caravan vehicle. It’s quite common for people to want to buy a motorhome without having the upfront cash to do it, which is why they use vehicle financing, instead.
How Vehicle Financing Works
Vehicle financing works like this:
- Find a credit broker
- Choose how much money you want to borrow to finance your vehicle (e.g. $10,000)
- Decide how many years you want to pay the money back over (e.g. five years)
- Get put in touch with the right lender for you
- Choose your vehicle
Yep, it’s that simple. The biggest part of this is actually getting accepted by the lender. It’s very rare for people to get turned down, as this only usually happens if an individual has a bad credit score. Providing that your credit score is good and you have no large outstanding debts, you should be good to go.
Once your vehicle financing deal is official, you’ll then start to pay the money back in monthly instalments. The general concept is that the monthly instalments are super-affordable because you’re spreading them out over multiple years, so there’s nothing to worry about in this regard.
Everything make sense so far? Great! Now, it’s time to look at the most exciting benefits of vehicle financing.
1. Get the Vehicle You Want, Fast
Some people spend years saving up the money for their dream car or van. With vehicle financing, this is something that you no longer have to put yourself through. Instead, you can get the vehicle you want very quickly after you’ve been approved by the lender. It usually only takes 1–3 days to get accepted by the lender, which is no time at all. From there, it’s simply down to how fast you make the purchase of the vehicle.
2. You Don’t Need a Perfect Credit Score
Next, another big benefit of vehicle financing is that you don’t need a perfect credit score. As previously touched on before, people with bad credit scores do often get turned away by lenders. However, this is only if your credit score is particularly bad. Providing that your credit score is average or just below, then there shouldn’t be a problem. If you’re someone who’s been worrying about your credit score, this’ll be music to your ears.
3. Payment Plants Are Very Easy to Understand
Vehicle financing payment plans couldn’t be easier to understand. Once a deal is put in place, you (the receiver of the money) will know exactly how much money you’re going to pay back (taking into account the interest) and how long you’re going to be paying it back for.
As a general example, you might borrow $50,000 and then pay that back over the course of ten years. The lender will then let you know what your monthly payment will be as well as the interest that goes on top of it. Again, the monthly payment will be based on what you can afford.
With vehicle financing, you get to experience a ton of flexibility. Essentially, the power is in your hands to choose how much you want to borrow and the length of time that you pay it back over. This is great, as it’s the complete opposite of the past where lenders would be extremely strict with this and would often impose limiting caps on how much individuals could borrow to buy a car or another type of vehicle.
5. Improve Your Life
You’re more than likely looking to finance a vehicle for one reason: to improve your life. You might recently have started a family and therefore need a bigger family car. Or, you might simply have had the same car for ten years and desperately need an upgrade for your own mental well-being! Whatever the case may be, vehicle financing can help get your life on track and in the direction that it needs to go.
Is Vehicle Financing Safe?
Yes, absolutely. Providing you choose a reliable lender, vehicle financing is nice and safe.
Remember, though, that it’s important you choose a deal that suits how much money you can afford per month in instalments. For example, don’t accept a vehicle financing deal that works out at $400 a month if this is something you can’t afford, as that’s a dangerous strategy. Instead, only choose a vehicle financing deal that you can comfortability afford — this way, there’s no risk involved!
What Vehicles Can I Get Vehicle Financing For?
On today’s roads, there’s a wide variety of vehicles. This includes cars, electric cars, vans, campervans, and motorbikes. No matter which type of vehicle you’re interested in, you’ll be able to find a lender that’s willing to finance it.
You’ve reached the end of this vehicle financing guide. From where to get vehicle financing to the benefits of doing it, you now know everything you need to know about vehicle financing.
Moving into the future, vehicle financing is going to play a huge role in car and van purchases. From first-time buyers to experienced drivers, all kinds of people from different backgrounds will be using vehicle financing to get the vehicles they want. It’s incredibly exciting — and you can do it, too.