What Types Of Car Loans Are There?
You can get an auto loan in different ways. Each may vary in interest, terms, or conditions. Next, we show you where you can get car credits.
Automotive Credit From A Bank
If you have an account in one, asking for a car or motorcycle pledge (จำนำมอไซค์, which is the term in Thai) is a good option. Banks, in principle, offer low-interest rates. The application and approval processes are generally quick, as it is easy for them to obtain the information necessary to process the loan.
Advantages Of Requesting Auto Credit In Banks
- Interest rates tend to be lower.
- The application and confirmation process are easy and many times fast, especially if you are a bank customer.
- The requirements of the conditions for automotive loans are usually quite tough.
- Banks usually consult the Credit Bureau, so they do not grant car loans to customers who have an adverse credit history.
Credit for cars through a tenant
This is a type of car lease where the lender buys the car and then rents it to the borrower. The borrower pays the lender with fixed monthly payments and is responsible for any maintenance and repairs that the car might need during the term of the contract.
Advantages Of Auto Credit With Tenants
- If you like to renew your car in a row, this is your type of car loan because you forget about factors such as the depreciation of the value of the vehicle or its long-term maintenance.
- If you are a natural person with business activity or work for fees, you can agree to a tax deduction.
- There may be a mileage restriction. If you go over a certain number of kilometers, you may be charged a penalty for the excess distance.
Credits For Car Dealerships
The auto loan obtained with a dealer to buy a car is a loan offered directly by the dealers to their customers. Concessionaires tend to be well connected with different funders, and this can help you get financing approval faster without the need for so much paperwork.
Advantages Of Car Loans From Dealers
- It is easy, convenient, and fast.
- Dealers usually accept cases that banks deny. That is, if you have a negative credit history, asking for a car loan at a dealership may be your solution.
- They accept your used car in exchange for a discount on the total price.
- The minimum amount financed will be higher than what a bank dictates, for example.
- The monthly payment fee includes payment protection insurance, life insurance, commissions, and anything the dealer wants to include.
- The cancellation fees for this auto loan are usually higher.