Are you considering buying a new car but are unsure how to proceed to fund the purchase?
There are mainly three variants, loans with collateral in the home, loans with a sales loan in the car you buy and a clean consumer loan without collateral. The right choice for you depends on different things. Your age, financial situation and the price range of the car you want to buy are located in your choice. Finn.no, which is one of the most popular marketplaces for used cars, has over 50,000 used cars for sale at all times. In other words, here you have a lot to think about and to choose from.
It is also no secret that whatever you choose, it is expensive to own a car. The most important thing is to find out how to avoid paying unnecessary costs. Then you need to find out how to best finance your purchase in your situation. So there are several ways to do this. We will consider the most appropriate option for those who cannot provide security, namely to use a consumer loan.
Consumer loan for the purchase of a car
Maybe you’re looking for a cheap used car? If you are in the younger audience, you may be looking for a cheaper car. It is then possible to raise a loan without collateral to finance the purchase.
Since a loan without collateral does not raise a very large loan, the loan will have lower establishment costs than an ordinary car loan. For example, you do not need a registration fee – a fee the public takes for the loan provider to be able to register the sales mortgage in the Løsøreregisteret in Brønnøysund. The fact that there is no mortgage on the vehicle makes it easier to buy and sell.
You choose what kind of insurance you should have
Cash-free loans are another name for this type of loan. The reason it is called a cash-free loan is that you don’t have to take up the most expensive insurance – full hull. The latter is mandatory if there is a sales deposit in the car. If you pick up a consumer loan, you are completely free to choose the insurance you want. A loss in the car’s value goes beyond yourself and not the bank. If you intend to buy an older car that is between NOK 50,000 and NOK 100,000 in price, liability insurance can be sufficient.
Tips for those who want to take consumer loans to buy a car
Check if there are encumbrances on the car you are going to buy. It is something the lender does when there is a sales mortgage, but that becomes your responsibility if you take consumer loans.
Always check several lenders before choosing a loan. Conditions may vary.
The car’s value deteriorates rapidly. Try to pay off the loan at the same rate. You should go to zero when you want to replace it.