Car Purchase Plans At Your Service

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Owning a car is a dream most individuals have and one which can be compared to owning a home. And if you already own a car, I bet the idea of changing it has crossed your mind once or twice, if not more. But cars are know to be very expensive items, and obtaining finance for the purchase can sometimes prove to be tricky. Vehicle loans have become very popular and have assisted many if obtaining their fantasy car.

The downside of vehicle loans is that not everyone qualifies for them without the aid of a co-signer, a down payment or a collateral. Also, there are those who simply do not feel up to going through an application process and going into debt with a lending company. For those of you out there who feel vehicle loans are not for you, the financial market has come up with car purchase plans. Get to know more about this interesting option!

Basics On Vehicle Purchase Plans

This financial product is also known as personal contract purchase and is a very attractive option for those who believe that car loans are not really the best way to go. What do these purchase plans entail? Well, it actually depends on the chosen plan. There are three different alternatives when it comes to purchase plans.

Option #1: The buyer will have to make a down payment to have access to a payment plan based on the buyers financial situation and desires. This down payment will be worth at least the 10% of the value of the vehicle. This plan is the most traditional one and is offered by most dealerships.

Option #2: If flexibility is what you are looking for, and you have limited funds at the moment of acquiring your vehicle, then this is the perfect plan for you. The buyer aggresses to make the final payment of the car once the contract expires. How is this payment calculated? The final figure is calculated by the dealership taking into account the age of the car, general condition and mileage.

Option #3: In this case, the buyer can actually choose not to make the final payment, thus returning the car after the contract expires. This plan resembles a lease contract, but it is not quite the same financial product.

Car purchase plans are available to both individuals and businesses.

Car Purchase Plans Also Carry Disadvantages

Every single thing in life has a downside to it, and vehicle payment plans are not the exception to the rule. When you apply for a vehicle loan, you can buy whatever vehicle you can think of within the decided budget, be it a used or a new car, it does not matter in the least. With car payment plans, your options are narrower as you will only be able to buy a new car. This option is not available for used car purchases.

So if you were not thinking of getting a brand new car, or if your funds are limited, then these plans might not be the answer to your prayers.

Other Available Options

Provided that auto loans are not what you want and that you do not qualify for a purchase plan, does that mean you will not be able to get your much desired car? Not necessarily. Sometimes, when you have no other choice, you will have to take the road less traveled by and save up the money. No pain, no gain, right?