How to get Finance on a Car Purchase
‘A penny saved is a penny earned’. It might be a cliché but it does hold true. Buying a car is not a simple decision. Whether buying outright or buying a car on finance. Every one have the doubt How to get finance on a car purchase? To get new cars in Dubai is not a Herculean task, as there are plenty of finance options available. The required documents may differ slightly depending on the bank. However, they typically include your driving license, your passport with a valid UAE visa, a salary certificate, statements of your last three months’ income, your Emirates ID, and a filled in and signed the application form.
The cash vs. finance dilemma
There are few people who have the ability and have saved enough money, to buy a car outright with cash in hand. It usually takes time, commitment, or a rather large income, to make it possible to pay cash for a car. This is why financing is made available to those who qualify – and is the most common way of purchasing a car today. With financing, you have the option of paying your car off over time (with an additional charge of “interest” as a fee for borrowing the money), rather than in just one lump sum.
Put 20 percent down (down payment)
If you are able to come up with a 20 percent down payment, you’d reap quite a few benefits. Putting that larger amount down lets you avoid paying private mortgage insurance (PMI), it can help you qualify for a lower interest rate (which can help you save thousands over the life of your loan), it’ll give you more equity faster, and it will result in a smaller monthly mortgage payment.
Buying a car using a personal loan
You can get a personal loan from a bank, building society or finance provider if your credit rating is good. You can spread the cost over one to seven years. Shop around for the best interest rate by comparing the APR (or annual percentage rate, which includes other charges you have to pay on top of the interest).