|
|
Mortgage Loans Debt
Platinum Boarder |
|
|
|
Car Finance - 2007/05/08 20:06
When looking for a car loan, there are three main type of loan on offer from various sources, these are hire-purchase, manufacturer schemes and personal loans.
Hire purchase is a scheme by which the customer receives the car and in effect hires the car from the manufacturer for the term of the scheme, at the end of this period the ownership of the car is transferred to the customer. The total amount payable by the customer is usually greater than the value of the car, this is how the seller makes money out of the scheme.
A second type of scheme is a manufacturer’s credit arrangement, most franchised dealerships will offer a finance scheme of some kind, allowing customers to spread the payment for their car over a period of time. These schemes can often be a big earner for the dealerships, however the manufacturers do occasionally run special promotions offering very low finance rates as an incentive in order to boost their car sales.
|
|
Loans
