When bargain hunting for the best price on a new or used car, people often search over a very large geographical region. That’s because there are often really great deals to be had for your perfect dream car. However, it can be quite the hassle to get the car all the way across the country and depending on the method you choose, you might lose all the savings you earned.
If you do find your deal of a lifetime, but it’s across the country, you’ll need to have it shipped to you. This service is remarkably cheap most of the time. The problem is usually not the expense itself but the difficulty in financing an additional $1000 to $1,500.
The price of shipping your car won’t be included in the price of your car loan. That means that you need to find an alternative means of financing. Here are a few options that people frequently use. Not all of them are right for everybody. You’ll need to think about them carefully and choose the one that best suits your particular needs at this time.
Cash On Delivery
The shipping finance method is simply COD, otherwise known as cash on delivery. When you opt to use the cash-on-delivery financing method, you will usually pay a deposit of around 10%. Whenever the vehicle is delivered to your residence or delivery address, you’ll need to pay the other 90%.
Before you know what you’re getting into and the kind of money you need on hand, you had better do some research. Go online and calculate your fees. When you know what kind of figures you’re working with, you can decide if this option is good for you.
This is a preferred method for many people and because of the value of the car, the shipping company takes no risk and waiting for delivery until they receive payment. This makes it very convenient for everybody involved.
However, if you don’t have the cash on hand, you’ll need to choose a different option.
One Of Several Loan Options
Of course, there are several kinds of loans you can apply for. These loans include a traditional bank loan, signature loan, payday loan, and any other simple loan service.
Depending on your credit and collateral, this option may be the best one for you. However, if your credits not in good shape and you have no collateral to offer, you’re likely to pay a lot more in interest rates than other options.
A bank loan is a secured loan that’s offered to you by a conventional bank. Usually, using your bank at your branch will have the best results. For a secured bank loan, you need to have some form of collateral. Your collateral needs to be an asset that can be liquidated readily if you cannot pay your loan. A secured bank loan will usually have the best interest rate of any financing option available.
However, if you have no collateral, and you have bad credit, then the loan type is no longer a secured bank loan and is instead an unsecured Bank loan, otherwise known as a signature loan. A signature loan is a bad choice for most borrowers, these kinds of loans typically have a high interest rate and should be avoided whenever possible.
And depending on your location, there may be many other loan types available to you. These include payday loans, pawnshops, and title loans. However, title loans and payday loans are considered predatory lending options and should never be considered except in the direst circumstances.
So if you must choose a traditional loan service, opt for the secured bank loan to get the best interest rates.
Financing Options Offered By The Shipping Company
Finally, the last option is to receive financing directly from the shipping company. This is not a bad option. The interest rates are usually only slightly higher than a secured banking loan because your vehicle is considered a form of collateral. This option is very convenient and is best suited for many people.
Applying for financing through the shipping company is easier than receiving a secured bank loan. Usually, the shipping company will just run a credit check, and you’ll be approved on the spot and assign you to the next available shipping slot. A traditional secured bank loan takes a bit of effort and a lot of paperwork. Not to mention, it’s not always easy to get to the bank.
Whatever you decide to do, one of the financing options will get that car to your home quickly and safely. So look into it and find the financing option that’s going to make your dream car at your dream price come true.
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