Auto loans brings your dream automobile within your reach
Written by: Sara Chambers
An automobile is something more than an engine on four wheels.
It is more than just another mode of transport. An automobile is
the reflection of the personality and tastes of its owner. A
person who owns a Rolls Royce is probably a person who gives top
priority to quality and class. A person who owns a sleek and
trendy sports car is probably an aggressive person who likes the
looks along with the stuff. An automobile is an indicator of
your status and financial wealth. However, automobiles do not
come cheap. If at all you intend to pay for your dream
automobile from your own pocket, you will have to earn a lot of
money before you actually own the car.
Since it will take a lot of time for people to accumulate enough
money to finance their car at one go, the facility of auto loans
is offered to the public. Auto loans can be obtained directly
from financial institutions that are in the business of
accepting deposits and offering loans. For the sake of
convenience of the customer, almost all the car dealers provide
the facility of auto loans.
In the case of the former, the provider of the loan is not
associated with the seller of the automobile. The two
transactions of purchase of automobile and obtaining the loan
for purchase of the automobile are separate. In the latter
instance, the financial institution and the car dealer enter in
to a mutually beneficial agreement to provide finance for
purchase of automobiles.
Such an agreement is beneficial to all the parties concerned.
The customer gains as he or she gets can purchase the automobile
and obtain an auto loan to finance the purchase at the same
place. Cumbersome paperwork and multiple negotiations can be
avoided. The car dealer gains by the fact that customers prefer
a car dealer who provides the facility of auto loans to a car
dealer who does not do so. The lending institution gains by the
fact that it is assured of borrowers. This agreement enables it
to shift the burden of advertising and marketing upon the car
Getting an auto loan from a lending institution will be cheaper
for the borrower. However, the borrower will have to take up the
burden of finding a lender offering the favorable terms and
conditions that he or she is looking for. Opting for auto loans
offered by car dealers enables the borrower to get a tailor made
deal suited to his or her needs. However, opting for an auto
loan through a car dealer will be costlier due to the presence
of the middleman.
An auto loan is pretty similar to any other loan. Money is
borrowed and repaid in installments along with interest charges.
Apart from auto loans, there is a flourishing market for
refinancing of auto loans and auto loans for borrowers having
About the author:
Sara Chambers is a marketing consultant and an internet content
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