You may be someone who is earning a stable income and are confident that you can meet monthly payments, perhaps one of your joys is to go shopping for your first vehicle. Maybe you are a first time buyer who has limited knowledge, insufficient funds and/or no credit history at all. Here are a few tips to consider before jumping into the loan jungle!
Read The Small Print!
It would be wise to familiarise yourself with some common terminologies that you may encounter, for instance interest rates, down payments and others that you might find in the logbook loans industry.
How Much Payment Can You Really Afford?
Before you determine how much money you can afford a month, remember to put aside some money in case of emergency's, for example car repairs or birthdays. You may find that some lenders may offer you a low or no down payment in order to attract borrowers. Don't be fooled as they typically have higher monthly payments and borrowers will end up paying more in the long run. In order to save yourself as much money as you can over time try and put as much money aside as you can in order to decrease the amount of money you need to borrow.
Lower payments for longer terms sound appealing, but potentially could cost you more in the long run. With most short term loans it could also be dangerous to be tied down for such a long time as it could take you a while to get back to your normal financial routine. Before considering refinancing remember there is usually a price to pay.
For example refinancing for a shorter loan. You may aim to save money during the course of your loan. With the bonus of becoming loan free as soon as possible, which could resume to you going back to your usual budget before you took out the loan. Sometimes having a shorter loan means higher monthly payments. You may find yourself watching your expenditure, sticking to a budget and making sure your payments get paid on time. It would be advisable to only finance a shorter loan providing you have a stable source of income in order to meet your repayments.
For more information about logbook loans have a look at this video https://www.youtube.com/watch?v=c4Y2_z5s0Q0
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