Are you considering owning a car through a car loan? Well, this guide will help you to understand the main types of car loans. It is essential to apprehend different types of loans so that you can make a sound decision. Here are the main types of car loans you should check.
Commercial hire purchase
Commercial higher purchase is where a financier buys a vehicle and then hires it to a client over a given period. This type of car loan applies to both individuals and businesses. Generally, the monthly fee pays out the loan after the agreed time is over, and clearance is done. After that, the car is taken to the motorist. The chattel mortgages normally replace commercial hire purchase.
Characterized by low capital outlay.
It offers fixed repayments and interest rates.
It can be revised to suit the borrower’s pocket.
Its flexible payment model makes financing a car more comfortable.