Believe it or not, applying for vehicle finance with the bank is not the only way that you can finance the purchase of a new car! While there are alternative car financing routes on the market, it is always advised that you work out your budget before making a decision. Not all options are viable for everyone. Below are a few alternative options to bank loans:
- Borrow money from a relative or a friend – this is not always advised, but in some instances it can work quite well. You will have the opportunity to repay the loan with a low interest rate, but things can get sticky if your financial situation changes. It is best to have a contract in place – you might not feel it is necessary, but it will create a feeling of goodwill and peace of mind for both parties.
- Take out a loan against your life insurance policy – again, this is not always advised, but it might seem a viable option to those who feel like they are out of options. The problem with this type of financing option is that the interest rates are exceptionally high. Always take a look to see just how much you will be paying back on your loan amount.
What’s the best way to finance a new car while avoiding auto finance bank loans?
The most logical, affordable and effective method of getting that new car without racking up an exorbitant interest rate or signing yourself into a long term contract, is to opt for rent to own car deals.
If you haven’t yet considered rent to own car packages, here’s what you need to know:
- Rent to own deals offer top quality vehicles at prices much lower than you will find at the average auto dealership. There are no finder’s fees or agents / brokers to pay.
- You can easily qualify for a rent to own deal, even if you are blacklisted or have a low credit score.
- While rental or lease contracts are typically set at 54 months, you have the option of cancelling the agreement earlier if you need to.
- After the 54-month lease period, the vehicle becomes yours.
- You can upgrade to a newer vehicle at the end of your rental period or you can keep the vehicle that you have been paying for.
Want to learn more about rent to own or rent to buy vehicle packages? Take a look at our car promotions or get in touch with us at Blacklisted Car Finance today.